What dividend stocks does Warren Buffett like?
Buffett loves The Coca-Cola Company (NYSE: KO) and its soft drinks. Coca-Cola has been in Berkshire's portfolio longer than any other stock. Buffett views co*ke as one of the stocks Berkshire will never sell. It's a Dividend King with 62 consecutive dividend increases.
With an impressive track record of dividend growth and a resilient business, Visa Inc (NYSE:V) is one of the best dividend stocks to buy according to Warren Buffett. In addition to Visa, Warren Buffett also enjoys dividends from Chevron Corp (NYSE:CVX), Coca-Cola Co (NYSE:KO) and American Express Company (NYSE:AXP).
Dividend Kings are companies that have paid and raised their dividend for at least 50 years. Some standouts to consider now include Altria, Kenvue, Coca-Cola, 3M, and Walmart.
| Stock | Number of Shares Owned | Value of Stake |
|---|---|---|
| Coca-Cola (NYSE:KO) | 400,000,000 | $23.8 billion |
| Chevron (NYSE:CVX) | 126,093,326 | $18.9 billion |
| Occidental Petroleum (NYSE:OXY) | 248,018,128 | $15.1 billion |
| Kraft Heinz (NASDAQ:KHC) | 325,634,818 | $11.3 billion |
1. American Express. American Express is a Buffet favorite, making up nearly 10% of Berkshire's stock portfolio. Buffett's initial investment in the payments and credit card company dates back to 1991, and since then, it has achieved a remarkable return, increasing from $1.3 billion to about $35.5 billion in value.
| Stock | Dividend yield |
|---|---|
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
| Realty Income Corp. (O) | 5.9% |
Microsoft (NASDAQ: MSFT), Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), Chevron (NYSE: CVX), Home Depot (NYSE: HD), JPMorgan Chase (NYSE: JPM), and United Parcel Service (NYSE: UPS) represent their industries well and are all top dividend stocks you can count on for decades to come.
Some of the highest dividend paying stocks in India are Vedanta Ltd., Hindustan Zinc Ltd, Coal India Ltd, T.V. Today Network Ltd, Bhansali Engineering Polymers Ltd, Balmer Lawrie Investment Ltd, Coal India Ltd.
- Mitsubishi is a stock Buffett plans to own "indefinitely" and is his biggest winner year to date.
- Nu Holdings continues to grow by leaps and bounds in Latin America.
- DaVita appears to be moving past the challenges created by the COVID-19 pandemic.
| Ticker | Company | % Portfolio |
|---|---|---|
| MSFT | Microsoft Corp. | 33.98% |
| BRK.B | Berkshire Hathaway Inc. | 16.80% |
| CNI | Canadian National Railway Co. | 16.29% |
| WM | Waste Management Inc. | 14.92% |
What does Warren Buffett suggest to invest in?
Key Points. Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.
- Bank of America (BAC), 1.03 billion.
- Apple (AAPL), 905.6 million.
- Coca-Cola (KO), 400 million.
- Kraft Heinz (KHC), 325.6 million.
- Occidental Petroleum (OXY), 248.1 million.
- American Express (AXP), 151.6 million.
- Chevron (CVX), 126.1 million.
- Nu Holdings (NU), 107.1 million.
Look for companies with competitive advantages that can be maintained, or economic moats. Firms that can successfully fend off competitors have a better chance of increasing intrinsic value over time. Focus on long-term intrinsic value, not short-term earnings.
| Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
|---|---|---|
| JPMorgan Chase & Co. (ticker: JPM) | 2.3% | 2.8% |
| Home Depot Inc. (HD) | 2.5% | 10.5% |
| Procter & Gamble Co. (PG) | 2.4% | 15.4% |
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
- ARMOUR Residential REIT – 20.7%
- Orchid Island Capital – 17.8%
- AGNC Investment – 14.8%
- Oxford Square Capital – 13.7%
- Ellington Residential Mortgage REIT – 13.2%
- SLR Investment – 11.5%
- PennantPark Floating Rate Capital – 10%
- Main Street Capital – 7%
There is no hard and fast rule for how many dividend stocks to start a portfolio, but a good starting point is to aim for a minimum of 10. This will give you a good mix of different companies and sectors and help to diversify your risk.
In the end, both Coca-Cola and PepsiCo are solid dividend stocks with strong brands and loyal customer bases. The key is to choose the one that best aligns with your investment goals and risk tolerance.
| Ticker | Name | Annual dividend yield |
|---|---|---|
| RDIV | Invesco S&P Ultra Dividend Revenue ETF | 4.87% |
| SPYD | SPDR Portfolio S&P 500 High Dividend ETF | 4.49% |
| FDL | First Trust Morningstar Dividend Leaders Index Fund | 4.36% |
| DJD | Invesco Dow Jones Industrial Average Dividend ETF | 4.25% |
A dividend is typically a cash payout for investors made quarterly but sometimes annually. Stocks and mutual funds that distribute dividends are generally on sound financial ground, but not always. Stocks that pay dividends typically provide stability to a portfolio but may not outperform high-quality growth stocks.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Easy Trip Plann. | 47.00 |
| 2. | Indian Energy Ex | 158.85 |
| 3. | Motherson Wiring | 69.55 |
| 4. | Lloyds Engineeri | 63.70 |
Which company pays the highest dividend in USA?
| Symbol | Div yield % (indicated) | Price |
|---|---|---|
| IEP D | 28.99% | 17.25 USD |
| UAN D | 21.74% | 81.87 USD |
| MED D | 19.58% | 33.71 USD |
| MNR D | 18.36% | 20.70 USD |
Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.
- Sirius XM Holdings (SIRI) ...
- Chevron (CVX) ...
- Occidental Petroleum (OXY) ...
- Apple (AAPL) ...
- HP (HPQ) ...
- Paramount Global (PARA) ...
- D.R. ...
- Markel (MKL) and Globe Life (GL)
- Apple Inc. (AAPL) Berkshire's Stake. ...
- Bank of America Corp. (BAC) ...
- American Express Co. (AXP) ...
- Coca-Cola Co (KO) Berkshire's Stake. ...
- Chevron Corp (CVX) Berkshire's Stake. ...
- Occidental Petroleum Corporation (OXY) Berkshire's Stake. ...
- Kraft Heinz Co. (KHC) ...
- Moody's Corporation (MCO) Berkshire's Stake.
Warren Buffett is perhaps the best example of the power of long-term compounding. Buffett uses compound interest, dividend reinvestment, and the power of constantly reinvesting the operating cash flow generated by Berkshire's businesses to his advantage.
References
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