In this article we will be taking a look at 5 dividend stocks Warren Buffett is backing in 2022. To read our detailed analysis of Buffett’s investment portfolio, you can go directly to see the 10 Dividend Stocks Warren Buffett is Backing in 2022.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
Dividend Yield: 3%
The Coca-Cola Company (NYSE:KO) is among the largest beverage companies operating multinational today. The company markets and sells a range of non-alcoholic drinks under the brands Coca-Cola, Fanta, Sprite, and many others. The stock makes up 7.15% of Buffett’s investment portfolio, and has paid consistent dividends to its shareholders for the past 59 years. As such, it is one of the best dividend stocks Warren Buffett is backing in 2022.
Evercore ISI analyst Robert Ottenstein holds an Outperform rating on shares of The Coca-Cola Company (NYSE:KO) as of this February.
Just this February, The Coca-Cola Company (NYSE:KO) raised its dividend yet again, declaring a now $0.44 per share quarterly dividend. This marks a significant increase of 4.8% from the previous dividend of $0.42.
Out of 924 hedge funds, 70 hedge funds were long The Coca-Cola Company (NYSE:KO) in the fourth quarter of 2021. Their total stake value was $28.6 billion.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Dividend Yield: 3.3%
Chevron Corporation (NYSE:CVX), an American multinational energy corporation, is among the dividend stocks Warren Buffett is backing in 2022. Buffett recently increased his stake in the company by 34%. The company is based in San Ramon, California, and actively operates in over 180 countries.
Jeanine Wai, an analyst at Barclays, holds an Overweight rating on shares of Chevron Corporation (NYSE:CVX) as of this March.
Chevron Corporation (NYSE:CVX) raised its share buyback guidance this March from $3 to $5 billion per year to $5 to $10 billion per year, based on an advantaged portfolio and balance sheet, according to the company’s CFO, Pierre Breber. The increases in buybacks, alongside the company’s dividend, are expected to increase the cash returned to shareholders by over 50%, compared to last year.
Chevron Corporation (NYSE:CVX) had 53 hedge funds holding stakes in it in the fourth quarter of 2021, compared to 51 hedge funds in the previous quarter. Their total stake values were $6.5 billion and $4.4 billion respectively.
3. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 46
Dividend Yield: 3.4%
U.S. Bancorp (NYSE:USB) is a bank holding company with headquarters in Minneapolis, Minnesota. The company is the parent company of U.S. Bank National Association and is also the fifth-largest financial institution in the US. It is one of the dividend stocks Warren Buffett is backing in 2022, and makes up 2.14% of his investment portfolio.
JPMorgan’s Vivek Juneja holds an Overweight rating on U.S. Bancorp (NYSE:USB) shares as of this February.
The company was noted to have bought Union Bank and double deposit market share in California, using its share currency, in December. Analyst Erika Najarian at UBS, while noting this positive development, initiated coverage of U.S. Bancorp (NYSE:USB) with a Buy rating in December 2021.
In the fourth quarter of 2021, 46 hedge funds were long U.S. Bancorp (NYSE:USB) out of 924 hedge funds. Their total stake value was $7.9 billion, compared to the previous quarter’s total stake value of $8.4 billion, with 42 hedge funds holding stakes in the company.
2. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 39
Dividend Yield: 4.1%
The Kraft Heinz Company (NASDAQ:KHC), also known as Kraft Heinz, is a US-based food company operating internationally. The company was formed by merging Kraft Foods and Heinz. Making up about 3.53% of Buffett’s investment portfolio according to Berkshire Hathaway’s latest 13F holdings, it is among the dividend stocks Warren Buffett is backing in 2022.
Stifel’s Cristopher Growe has a Hold rating on The Kraft Heinz Company (NASDAQ:KHC) shares as of this February.
The company’s fiscal fourth quarter of 2021 EPS was $0.79, beating estimates by $0.16. The Kraft Heinz Company (NASDAQ:KHC) also beat revenue estimates by $64.4 million, with its $6.7 billion revenue. The stock has gained 2.4% in the past six months and 2.9% year to date as well.
Our hedge fund data shows 39 hedge funds holding stakes in The Kraft Heinz Company (NASDAQ:KHC) in the fourth quarter. Their total stake value was $12.2 billion.
1. Verizon Communications (NYZE:VZ)
Number of Hedge Fund Holders: 63
Dividend Yield: 4.8%
Verizon Communications (NYZE:VZ) is a US-based telecommunications conglomerate. The company is part of the Dow Jones Industrial Average, and is among the dividend stocks Warren Buffett is backing in 2022. It has raised its dividend for the past 17 years, making it a reliable stock pick.
Tigress Financial analyst Ivan Feinseth holds a Buy rating on Verizon Communications (NYZE:VZ) shares as of this January.
The company’s EPS in the fourth quarter of 2021 was $1.31, beating estimates by $0.03. Its revenue was $34.1 billion, also beating estimates by $30.6 million.
The number of hedge funds holding stakes in Verizon Communications (NYZE:VZ) in the fourth quarter of 2021 was 63, compared to 57 hedge funds in the previous quarter. Their total stake values were $10.9 billion and $10.4 billion respectively.
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