Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, is known for his successful investment strategies and long-term approach to stock picking. One key aspect of Buffett’s investment philosophy is his focus on dividend stocks. Dividend stocks are companies that pay out a portion of their earnings to shareholders in the form of dividends, providing investors with a steady stream of passive income.
Buffett’s investment portfolio is filled with dividend stocks, reflecting his preference for companies with strong profitability, sensible capital allocation, and competitive advantages. By analyzing Berkshire Hathaway’s portfolio, investors can gain valuable insights into the types of dividend stocks that Buffett and his team favor.
Here are 10 dividend stocks from Berkshire Hathaway’s portfolio as of September 30, 2024, that were selected by Buffett himself or his investment managers, Todd Combs and Ted Weschler:
1. The Kraft Heinz Company (KHC)
– Annual dividend: $1.60
– Dividend yield: 5.09 percent
2. Chevron Corp. (CVX)
– Annual dividend: $6.52
– Dividend yield: 4.03 percent
3. Sirius XM Holdings (SIRI)
– Annual dividend: $1.08
– Dividend yield: 3.95 percent
4. Diageo plc (DEO)
– Annual dividend: $4.14
– Dividend yield: 3.48 percent
5. Ally Financial (ALLY)
– Annual dividend: $1.20
– Dividend yield: 3.07 percent
6. The Coca-Cola Co. (KO)
– Annual dividend: $1.94
– Dividend yield: 3.05 percent
7. Citigroup (C)
– Annual dividend: $2.18
– Dividend yield: 3.05 percent
8. Bank of America (BAC)
– Annual dividend: $1.04
– Dividend yield: 2.22 percent
9. The Kroger Co. (KR)
– Annual dividend: $1.28
– Dividend yield: 2.13 percent
10. Chubb (CB)
– Annual dividend: $3.64
– Dividend yield: 1.27 percent
These dividend stocks offer a combination of attractive dividend yields and solid fundamentals, making them appealing choices for income-focused investors. It’s important to note that dividends are not guaranteed and can be cut or eliminated if a company’s financial performance deteriorates. Therefore, thorough research and consultation with a financial advisor are recommended before investing in dividend stocks.
In conclusion, dividend stocks can be a valuable addition to an investor’s portfolio, providing a source of passive income and potential long-term growth. By following in the footsteps of Warren Buffett and analyzing his dividend stock picks, investors can gain valuable insights into building a successful dividend-focused investment strategy.
