Apple, Inc.'s (NASDAQ:AAPL) benevolent shareholder returns have always proved to be a windfall for Warren Buffett-led Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK). With the tech giant's 4.2% dividend hike, the windfall is only going to get fatter.

Berkshire's Apple Bet: Berkshire's Apple holding at the end of the fourth quarter was 904.87 million shares valued at $174.21 billion, according to the 13F report filed with the SEC on Feb. 14.

Given Apple shares fell 10.82% in the March quarter, Berkshire may have seen a reduction in the value of the Apple shares it holds, even if it maintained the number of shares unchanged. The company may update on any changes to the value and share count when it files its 13F report for the first quarter.

Assuming Berkshire holds the same 904.87 million Apple shares as of the record date of May 13 for the dividend, the Buffett-led firm stands to get $226.22 million in dividend income alone.

Why It's Important: Apple is one of the core equity holdings of Berkshire. In the annual report filed with the SEC on Form 10-K, the company said about 79% of the aggregate fair value of its equity holdings was concentrated in five companies, namely:

• Apple: $174.3 billion, accounting for 49.26% of the total equity portfolio in terms of value
• Bank of America Corp. (NYSE:BAC): $34.8 billion
• American Express Co. (NYSE:AXP): $28.4 billion
• Coca-Cola Co. (NYSE:KO): $23.6 billion
• Chevron Corp. (NYSE:CVX): $18.8 billion

Buffett initiated a position in Apple in the first quarter of 2016, buying roughly 39.2 million shares. Berkshire has since then tinkered with the stake.

In the fourth quarter of 2023, the firm trimmed its Apple holding by over 10 million amid the fundamental worries that weighed down on the stock. After reporting four straight quarters of year-over-year revenue declines, Apple snapped the streak in the December quarter of 2023. Just when investors thought growth would continue to inflect higher, China's iPhone weakness amid competitive pressures dragged revenue lower yet again in the second quarter.

Wedbush's Daniel Ives said in a note reviewing the results that China's weakness may be a thing of the past, with iPhone sales in the key market stabilizing in the June quarter and beginning to grow in the September quarter. The analyst also sees an "AI-driven" super-cycle starting with the iPhone 16 this Fall.

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