In this article, we discuss 5 best Warren Buffett dividend stocks to buy now. If you want to read our detailed analysis of Buffett’s dividend investment strategy and the importance of dividend stocks, go directly to read 12 Best Warren Buffett Dividend Stocks To Buy Now.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 86
Johnson & Johnson (NYSE:JNJ) ranks fifth on our list of the best dividend stocks. The pharmaceutical industry company has been growing its dividends consistently for the past 62 years and currently pays a quarterly dividend of $1.19 per share. The stock has a dividend yield of 3.00%, as of July 18.
The number of hedge funds in Insider Monkey’s database with stakes in Johnson & Johnson (NYSE:JNJ) grew to 86 in Q1 2023, from 84 in the previous quarter. These stakes have a consolidated value of over $4.5 billion.
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4. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 91
Bank of America Corporation (NYSE:BAC) is a North Carolina-based financial services company that also offers investment banking services to its consumers. The company recently announced Q2 2023 earnings and showed strong results, with revenue of $25.2 billion, up 3% from the same period last year. During the quarter, it also distributed $2.3 billion to shareholders through dividends and share repurchases.
Bank of America Corporation (NYSE:BAC), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.22 per share. It plans to announce a 9% hike in its quarterly dividend at the beginning of the third quarter of 2023. The stock’s dividend yield on July 18 came in at 2.87%.
At the end of Q1 2023, 91 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), according to our data. The total value of these stakes is over $31.7 billion.
Oakmark Funds mentioned Bank of America Corporation (NYSE:BAC) in its Q2 2023 investor letter. Here is what the firm has to say:
“Two financial industry companies led the six-month detractors’ list, however. Charles Schwab and Bank of America Corporation (NYSE:BAC) both reported material mark-to-market unrealized losses in their marketable securities holdings, an outcome of the increase in interest rates early in the year.”
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3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
An American tech giant, Apple Inc. (NASDAQ:AAPL) is next on our list of the best dividend stocks owned by Buffett. The billionaire started investing in the company in 2016 and is the company’s largest stakeholder at the end of Q1 2023, owning shares worth roughly $151 billion.
Apple Inc. (NASDAQ:AAPL) currently pays a quarterly dividend of $0.24 per share and has raised its payouts for 11 years in a row. The stock has a dividend yield of 0.50%, as of July 18.
In addition to Berkshire Hathaway, 131 hedge funds tracked by Insider Monkey owned stakes in Apple Inc. (NASDAQ:AAPL) in Q1 2023. These stakes have a collective value of over $165.2 billion.
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2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 138
Mastercard Incorporated (NYSE:MA) is an American financial services company that also specializes in payment processing services. The company holds a ten-year streak of consistent dividend growth, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.57 per share for a dividend yield of 0.57%, as of July 18.
During the first quarter of 2023, Mastercard Incorporated (NYSE:MA) returned $545 million to shareholders in dividends. The company’s cash generation remained strong as its operating cash flow jumped to $2 billion, from $1.7 billion in the prior-year quarter.
Of the 943 hedge funds tracked by Insider Monkey, 138 funds owned stakes in Mastercard Incorporated (NYSE:MA) in Q1 2023, with a collective value of over $14.22 billion.
Akre Capital Management mentioned Mastercard Incorporated (NYSE:MA) in its Q2 2023 investor letter. Here is what the firm has to say:
“The Fund owns many businesses that stand to benefit enormously from A.I. Mastercard Incorporated (NYSE:MA) and Visa have long used artificial intelligence to gather and utilize insights from their massive troves of data to improve the safety and security of their networks. The top five positive contributors to performance during the quarter were Moody’s, Mastercard, CoStar, Constellation Software, and Adobe.”
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1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 173
Visa Inc. (NYSE:V) tops our list of the best dividend stocks owned by Warren Buffett. The financial services company offers a per-share dividend of $0.45 every quarter and has a dividend yield of 0.75%, as of July 18. The company has been raising its dividends consistently since 2008.
As of the close of Q1 2023, 173 hedge funds tracked by Insider Monkey held stakes in Visa Inc. (NYSE:V), compared with 177 in the previous quarter. Collectively, these stakes are worth over $26 billion.
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