13 Best Warren Buffett Dividend Stocks To Invest In Right Now

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 131

Mastercard Incorporated (NYSE:MA) is a New York-based credit card company that offers a wide range of payment processing and related services to its consumers. In the fourth quarter of 2024, the company reported revenue of $7.5 billion, reflecting a 14% increase compared to the same period the previous year. The company’s net income for the quarter reached $3.5 billion, rising from $3 billion in the prior-year period. As of December 31, 2024, a total of 3.5 billion Mastercard and Maestro-branded cards had been issued to customers.

Mastercard Incorporated (NYSE:MA) has delivered an over 23% return to shareholders in the past 12 months. The company has gained investor confidence due to its robust growth, substantial competitive edge, and ability to withstand challenging economic conditions. Its primary source of revenue comes from swipe fees, earning slightly over 2% per transaction on co-branded cards. This simple yet dependable business model enables strong performance during favorable market conditions while shielding the company from credit risks during economic downturns.

Mastercard Incorporated (NYSE:MA) maintained a strong cash position, closing the quarter with more than $8.4 billion in cash and cash equivalents, while total assets exceeded $19.7 billion. In fiscal year 2024, the company generated $14.7 billion in operating cash flow, an increase from $12 billion in 2023. This financial strength enabled it to return $2.4 billion to shareholders through dividends over the year. With 13 consecutive years of dividend growth under its belt, MA is one of the best dividend stocks according to Warren Buffett. It currently pays a quarterly dividend of $0.76 per share and has a dividend yield of 0.54%, as of February 10.