Warren Buffett's Berkshire Hathaway will make about $700 million a year from its Apple holdings just by collecting dividends.
The Oracle of Omaha revealed to CNBC that Berkshire bought an astounding 75 million shares of Apple during the first quarter. That adds to the 165.3 million shares Berkshire already owned at the end of 2017.
Apple "is an unbelievable company," Buffett said in a "Squawk Box" interview that aired Friday. "If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States."
On Tuesday the smartphone maker announced a quarterly dividend increase of 16 percent, to 73 cents a share. Apple also said in its most recent 10-Q filing that the "company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors."
But under the assumption the dividend just stays at this level, Berkshire Hathaway's latest Apple position size will generate $701.7 million per year in dividend payments for the company.