5 Best Dividend Stocks to Buy According to Warren Buffett

1. Bank of America Corporation (NYSE:BAC)

Berkshire Hathaway’s Stake Value: $31,444,432,000
Dividend Yield as of October 17: 2.63%

Bank of America Corporation (NYSE:BAC) is an American multinational financial services company. On July 20, the company announced to hike its quarterly dividend by 5%. Through this increase, the company extended its dividend growth to nine years, which makes it one of the best dividend stocks on our list. It currently offers a quarterly dividend of $0.22 per share, with a dividend yield of 2.63%, as of October 17.

Berkshire Hathaway opened its position in Bank of America Corporation (NYSE:BAC) in 2011 and has raised its stake ever since. The North Carolina-based company was the second-largest holding of the fund and represented 10.47% of Warren Buffett’s portfolio.

Deutsche Bank mentioned Bank of America Corporation (NYSE:BAC) in its September investors’ note and maintained its Buy rating on the stock, as the firm sees an upside in the banking sector after underperformace for weeks.

At the end of Q2 2022, 99 hedge funds tracked by Insider Monkey owned stakes in Bank of America Corporation (NYSE:BAC), the same as in the previous quarter. The combined value of these stakes is roughly $36 billion. Along with Warren Buffett, Ken Griffin was one of the company’s most prominent stakeholders in Q2.

Diamond Hill Capital Management mentioned Bank of America Corporation (NYSE:BAC) in its Q2 2022 investor letter. Here is what the firm has to say:

“Bank of America Corporation (NYSE:BAC) shares were weak in Q2 as the market became increasingly focused on the possibility of a near-term recession and the potential for credit losses along with current fee revenue pressures.”

You can also take a look at Warren Buffett’s 10 Favorite Dividend Stocks for the Rest of 2022 and 10 Small-Cap Stocks that Pay Dividends

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