In this article we will be taking a look at 5 blue chip stocks in Warren Buffett’s portfolio. To read our detailed analysis, you can go directly to see the 10 Blue Chip Stocks in Warren Buffett’s Portfolio.
5. Verizon Communications (NYSE:VZ)
Number of Hedge Fund Holders: 63
Verizon Communications (NYSE:VZ) is a communication services company offering communications, technology, information, and entertainment products and services through its subsidiaries. The company is also a strong dividend payer, having raised its dividend yield for 17 years in a row.
In January, Deutsche Bank analyst Bryan Kraft reiterated a Hold rating on Verizon Communications (NYSE:VZ) shares.
Verizon Communications’ (NYSE:VZ) earnings history shows an EPS of $1.31 in the fourth quarter of 2021, and revenue of $34.1 billion. Both beat consensus estimates, by $0.03 and $30.6 million, respectively.
In the fourth quarter, 63 hedge funds were long Verizon Communications (NYSE:VZ), with a total stake value of $10.9 billion.
4. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 64
American Express Company (NYSE:AXP), a credit card service company, is among the blue chip stocks in Warren Buffett’s portfolio, making up 7.5% of the portfolio. The company operates internationally as well as in the US, and specializes in payment card services.
Mihir Bhatia, an analyst at BofA, holds a Buy rating on American Express Company (NYSE:AXP) shares as of this March.
In the same month, the company announced an increase of 20% in its quarterly dividend, bringing it up to $0.52 per share. This significant increase is set to offer income investors an attractive dividend, raising the company’s popularity.
American Express Company (NYSE:AXP) had 64 hedge funds holding stakes in it in the fourth quarter, and 57 hedge funds holding stakes in it in the previous quarter. Their total stake values were $28.9 billion and $29.6 billion respectively.
3. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
The Coca-Cola Company (NYSE:KO) is among the blue chip stocks in Warren Buffett’s portfolio that helped the billionaire investor make $4.6 billion in only dividends just last year. The company operates in the consumer staples sector, producing non-alcoholic beverages for consumption. Some of its brands include Fresca, Sprite, and Fanta.
Evercore ISI’s Robert Ottenstein holds an Outperform rating on shares of The Coca-Cola Company (NYSE:KO) as of this February.
The company’s EPS in the fourth quarter of 2021 was $0.5, beating estimates by $0.04. The Coca-Cola Company (NYSE:KO) also had revenue of $9.5 billion in this quarter, beating estimates by $579.3 million. The stock has gained 12.1% in the past six months and 1.9% year to date as well.
Our hedge fund data for the fourth quarter of 2021 shows 70 hedge funds long The Coca-Cola Company (NYSE:KO) in that quarter. Their total stake value was $28.6 billion.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 84
Bank of America Corporation (NYSE:BAC) is a US-based multinational investment banking and financial services holding company. The company is among the top five blue chip stocks in Warren Buffett’s portfolio. It constitutes 13.6% of the portfolio, according to Berkshire Hathaway’s latest 13F holdings.
Bank of America Corporation (NYSE:BAC) was upgraded from Underperform to Neutral this March by David George, an analyst at Baird.
Bank of America Corporation’s (NYSE:BAC) EPS in the fourth quarter of 2021 was $0.8, beating estimates by $0.1. The company’s revenue was $22.1 billion, and the stock has gained 2.3% in the past six months.
There were 84 hedge funds holding stakes in Bank of America Corporation (NYSE:BAC) in the fourth quarter, compared to 72 hedge funds in the previous quarter. Their total stake values were $47.9 billion and $46.5 billion respectively.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) is one of the most renowned blue chip stocks in Warren Buffett’s portfolio and specializes in consumer electronics, software, and online services.
Bernstein’s Toni Sacconaghi holds a Market Perform rating on shares of Apple Inc. (NASDAQ:AAPL) as of this March.
In the fiscal first quarter of 2022, Apple Inc. (NASDAQ:AAPL) had an EPS of $2.1, beating estimates by $0.2. The company’s revenue was $123.9 billion, also beating estimates by $5.4 billion. The stock has gained 15.9% in the past six months as well.
Out of 924 hedge funds, 134 hedge funds held stakes in Apple Inc. (NASDAQ:AAPL) in the fourth quarter. Their total stake value was $186 billion.
Saturna Capital, an investment management firm, mentioned Apple Inc. (NASDAQ:AAPL) in its fourth-quarter 2021 investor letter. Here’s what they said:
“Concerning the stock market, we avoid short-term predictions. But what of the next decade? A theme since the start of the pandemic has been the big getting bigger. Apple flirts with a $3 trillion market capitalization, trailed by Microsoft, as Alphabet and Amazon also appear among the top five largest companies.
While Apple may not be a network in the traditional sense, it does have over one billion active users dedicated to its products. Apple’s unrivalled ability to integrate complex technology with a user-friendly customer experience positions the company to extend into media content, augmented reality, the connected home, and perhaps EVs, all while growing its profitable subscription revenue.”
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