This article presents an overview of the 5 Best Warren Buffett Dividend Stocks To Invest In Right Now. For a detailed overview of such stocks read our article, 13 Best Warren Buffett Dividend Stocks To Invest In Right Now.
5. Chevron Corp (NYSE:CVX)
Warren Buffett’s Stake: $18,808,080,506
Oil giant Chevron Corp (NYSE:CVX) ranks fifth in our list of the best dividend stocks in Warren Buffett’s portfolio. Chevron Corp (NYSE:CVX) has a dividend yield of about 4%. The stock is up about 7% year to date through April 2.
Warren Buffett’s Berkshire owns a stake worth about $19 billion in Chevron Corp (NYSE:CVX) as of the end of the fourth quarter of 2023.
4. Coca-Cola Co (NYSE:KO)
Warren Buffett’s Stake: $23,572,000,000
With over six decades of dividend increases and a resilient business, Coca-Cola Co (NYSE:KO) is a no-brainer dividend stocks loved by Warren Buffett as well as several famous billionaires and hedge fund managers. Buffett has been holding onto Coca-Cola Co (NYSE:KO) shares since 2010. He regularly talks about Coca-Cola Co (NYSE:KO) and its dividends in his annual letters to describe the power of compounding and letting money do the work. Buffett has a $24 billion stake in the beverage giant Coca-Cola Co (NYSE:KO).
Hayden Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its third 2023 investor letter:
“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.
Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.
I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.
But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”
Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”
3. American Express Company (NYSE:AXP)
Warren Buffett’s Stake: $28,402,748,537
Berkshire owns a $28 billion stake in American Express Company (NYSE:AXP) as of the end of the last quarter of 2023. Last month, American Express Company (NYSE:AXP) announced a 17% increase in its dividends.
Artisan Select Equity Fund stated the following regarding American Express Company (NYSE:AXP) in its fourth quarter 2023 investor letter:
“Our top performers this quarter were American Express Company (NYSE:AXP), Expedia and Axalta. American Express saw a 26% share price gain. The business has performed well over the past year and over our holding period. While American Express’ long-term growth and attractive business model is well known and understood, the shares had been flat to down for most of the year on fears of a recession. In a recessionary environment, consumer spending slows, which impacts revenue, and credit costs go up as consumers have a harder time paying their bills. As fears about a recession receded in Q4, investors bid up American Express shares.”
2. Bank Of America Corp (NYSE:BAC)
Warren Buffett’s Stake: $34,776,127,042
With over a decade of dividend increases and a dominance in the banking industry, Bank Of America Corp (NYSE:BAC) is among Warren Buffett’s favorites. The Oracle of Omaha owns a $35 billion stake in Bank Of America Corp (NYSE:BAC) as of the end of 2023.
HSBC recently upgraded Bank Of America Corp (NYSE:BAC) to Buy from Hold.
Sequoia Fund stated the following regarding Bank of America Corporation (NYSE:BAC) in its fourth quarter 2023 investor letter:
“Exits last year included Netflix, Bank of America Corporation (NYSE:BAC) and Micron. As discussed in our Q1 shareholder letter, we exited our investment in Bank of America soon after making it, as our thesis was quickly undermined by the regional banking crisis and the regulatory developments that it catalyzed. We think both Bank of America and Micron were purchased at conservative prices given the facts at hand, but the facts changed and we moved on.”
1. Apple Inc. (NASDAQ:AAPL)
Warren Buffett’s Stake: $174,347,466,800
Apple Inc. (NASDAQ:AAPL) is falling this year amid China-related concerns and a decline in iPhone demand. Loop Capital recently cut its price target on Apple Inc. (NASDAQ:AAPL) shares to $170 from $185, saying Apple Inc.’s (NASDAQ:AAPL) revenue will decline this year because of a softening iPhone demand. Apple Inc. (NASDAQ:AAPL) shares have lost about 9% year to date, but many believe Apple Inc. (NASDAQ:AAPL) will rebound on the back of AI announcements in June and other catalysts.
Warren Buffett has been holding stakes in Apple Inc. (NASDAQ:AAPL) since 2016. Apple Inc. (NASDAQ:AAPL) is the biggest holding of Berkshire Hathaway, as of the end of 2023.
Orbis Global Equity Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2023 investor letter:
“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple Inc. (NASDAQ:AAPL) at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.”
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