In this article, we discuss 5 best value dividend stocks to buy according to Warren Buffett. If you want to read our detailed analysis of Buffett’s investment strategy and the performance of dividend stocks over the years, go directly to read 12 Best Value Dividend Stocks to Buy According to Warren Buffett.
5. Bank of America Corporation (NYSE:BAC)
P/E Ratio as of October 14: 7.73
Berkshire Hathaway’s Stake Value: $29,632,524,052
Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US and a prominent player in the global banking and financial services industry. The company has paid regular dividends to shareholders for 24 years and has a P/E ratio of 7.73 as of October 14. It currently pays a quarterly dividend of $0.24 per share and has a dividend yield of 3.48%, as recorded on October 14.
Bank of America Corporation (NYSE:BAC) was the second largest holding of Berkshire Hathaway at the end of Q2 2023, with the hedge fund holding BAC stakes worth roughly $30 billion. The company made up 8.51% of the firm’s 13F portfolio.
As of the end of Q2 2023, 90 hedge funds in Insider Monkey’s database owned investments in Bank of America Corporation (NYSE:BAC), compared with 91 in the previous quarter. The total value of these stakes is more than $31.7 billion.
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4. D.R. Horton, Inc. (NYSE:DHI)
P/E Ratio as of October 14: 7.28
Berkshire Hathaway’s Stake Value: $726,454,496
D.R. Horton, Inc. (NYSE:DHI) is one of the recent acquisitions of Berkshire Hathaway in Q2 2023. The hedge fund opened its position in the homebuilding company with roughly 6 million shares, worth over $726.4 million. The company accounted for 0.2% of the firm’s 13F portfolio.
D.R. Horton, Inc. (NYSE:DHI) has been raising its dividends consistently for the past 10 years and currently pays a quarterly dividend of $0.25 per share. The stock has a dividend yield of 0.95%, as of October 14. With a P/E ratio of 7.28, DHI is one of the best value stocks on our list.
The number of hedge funds in Insider Monkey’s database owning stakes in D.R. Horton, Inc. (NYSE:DHI) grew to 54 in Q2 2023, from 46 in the previous quarter. The consolidated value of these stakes is over $2.8 billion.
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3. Ally Financial Inc. (NYSE:ALLY)
P/E Ratio as of October 14: 6.63
Berkshire Hathaway’s Stake Value: $783,290,001
Ally Financial Inc. (NYSE:ALLY) is a diversified financial services company that offers a range of products and services, primarily in the areas of automotive finance, banking, and online brokerage. The company offers a quarterly dividend of $0.30 per share and has a dividend yield of 4.72%, as of October 14. It raised its dividends for six consecutive years.
At the end of Q2 2023, Berkshire Hathaway owned 29 million shares in Ally Financial Inc. (NYSE:ALLY), worth over $783.2 million. The company represented 0.22% of the firm’s 13F portfolio.
As of June 2023, 46 hedge funds tracked by Insider Monkey owned stakes in Ally Financial Inc. (NYSE:ALLY), worth collectively over $1.8 billion.
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2. Citigroup Inc. (NYSE:C)
P/E Ratio as of October 14: 6.58
Berkshire Hathaway’s Stake Value: $2,543,470,454
An American multinational finance company, Citigroup Inc. (NYSE:C) pays a quarterly dividend of $0.53 per share. The stock has a dividend yield of 5.15%, as of October 14. At the end of Q2 2023, Berkshire Hathaway owned stake in Citigroup worth over $2.5 billion. The company accounted for 0.73% of the firm’s 13F portfolio.
At the end of Q2 2023, 75 hedge funds owned stakes in Citigroup Inc. (NYSE:C), compared with 79 in the previous quarter. The consolidated value of these stakes is over $6.7 billion.
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1. General Motors Company (NYSE:GM)
P/E Ratio as of October 14: 4.23
Berkshire Hathaway’s Stake Value: $848,320,000
General Motors Company (NYSE:GM) tops our list of the best value stocks that pay dividends. The automotive manufacturer pays a quarterly dividend of $0.09 per share and has a dividend yield of 1.19%, as of October 14.
The number of hedge funds in Insider Monkey’s owning stakes in General Motors Company (NYSE:GM) stood at 72 in Q2 2023. These stakes have a total value of over $2.5 billion.
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You can also take a look at 11 Cheap Chinese Penny Stocks to Buy According to Hedge Funds and 13 Stocks to Buy with Exponential Growth
