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Use This ETF to Earn Dividends From Berkshire Hathaway

newsfeedback@fool.com (Todd Shriber)
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Berkshire Hathaway doesn't pay a dividend, but investors can get one and exposure to the stock with this ETF.Extracting dividend income from Berkshire Hathaway (BRKA +0.50%) (BRKB +0.45%) is impossible because the company doesn't pay a dividend.That's an interesting state of affairs because the conglomerate's equity portfolio contains many dividend-paying stocks, including some with lengthy payout growth profiles such as American Express and Coca-Cola, among others. Alone, Coca-Cola pays $816 million in dividends to Berkshire, and in aggregate, Berkshire collects billions of dollars in yearly payouts from its portfolio companies.This ETF is an income play on Berkshire Hathaway. Image source: Getty Images.That cash doesn't flow directly to investors, but thanks to the VistaShares Target 15 Berkshire Select Income ETF (OMAH 0.65%), it's possible to get paid while investing in this famous stock. This exchange-traded fund (ETF) turns a year old next month, and it's fair to say the marriage of Berkshire Hathaway and dividends is appealing to income investors because it already has $664.23 million in assets under management. More critical is examining this ETF's plumbing. The fund tracks the Solactive VistaShares Berkshire Select index, which is comprised of Berkshire "B" shares and the company's top 20 equity holdings. So investors get some potential upside leverage to Berkshire while accessing income not available with the stock.This ETF generates income through an options-based strategy, aiming for a 15% annual yield and a monthly payout. To its credit, the fund's monthly payouts have been steady. It's delivered 12 since coming to market in sizes ranging from $0.23 a share to $0.25. The lack of wide fluctuations, which are common with some income funds, may be a selling point for some investors.This isn't a free-lunch ETF. Much of its generated income comes from returns of capital, also known as the issuer returning investors' cash. Ten of this ETF's 12 monthly payouts have been paid with a return of capital of at least 82.8%, with two, January 2026 and June 2025, being 100% return of capital. Critics knock return of capital because it erodes an ETF's net asset value.The VistaShares fund charges 0.95% annually, or $95 on a $10,000 stake.American Express is an advertising partner of Motley Fool Money. Todd Shriber has positions in Tidal Trust III-Vistashares Target 15 Berkshire Select Income ETF.

The Motley Fool has positions in and recommends Berkshire Hathaway.

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