Billionaire Warren Buffett’s Top Dividend Picks

Then there’s Wells Fargo & Co. (NYSE:WFC), in which Berkshire trimmed its stake by around 1.72 million shares to 456.51 million shares valued at $23.93 billion. Wells Fargo & Co. (NYSE:WFC)’s dividend yield of 2.85% is one of the largest among US-based banks. In addition, Wells Fargo & Co. (NYSE:WFC) has had a number of positive industry catalysts. The Fed has just raised the federal funds rate to 1.75% – 2% and there are two more hikes expected this year, which should provide a nice tailwind for banking stocks in addition to lower taxes. The rollback of the Dodd Frank act is bringing a number of benefits for the industry and there are further changes in regulations that might ease the burden of stress tests for banks. Stress tests determine how much capital banks are required to hold and how much they can give away to shareholders in form of dividend and stock buybacks. Since the beginning of the year, Wells Fargo & Co. (NYSE:WFC)’s shares have lost 10% as the bank is still recovering from the scandal related to its customer practices. Earlier this year, the Federal Reserve has capped the size of Wells Fargo & Co. (NYSE:WFC)’s assets until it addresses the issues and the bank is estimating that its assets will likely remain capped until the beginning of 2019. Last month, Wells Fargo & Co. (NYSE:WFC) launched a marketing campaign in an attempt to win back the trust of its customers.

Among Warren Buffett’s top holdings, Kraft Heinz Co (NASDAQ:KHC) has the largest dividend yield, 4.16%. Earlier this year, Dividend Channel has named Kraft Heinz Co (NASDAQ:KHC) the top dividend stock of the Nasdaq 100, pointing out company’s profitability. Kraft Heinz Co (NASDAQ:KHC) has been recently involved in some M&A speculation following the departure of Campbell Soup Company (NYSE:CPB) CEO Denise Morrison. Campbell Soup has been struggling with weak sales and it might sells some brands and Kraft Heinz Co (NASDAQ:KHC) might be a potential buyer. Moreover, the decline of the stock following disappointing results could spark the interest of Kraft Heinz Co (NASDAQ:KHC) to acquire the entire company. At the end of March Berkshire Hathaway held 325.63 million shares of Kraft Heinz Co (NASDAQ:KHC) valued at $20.28 billion.

In The Coca-Cola Co (NYSE:KO), Berkshire owns 400 million shares valued at $17.14 billion. The Coca-Cola Co (NYSE:KO)’s stock has a dividend yield of 3.40% and the company has been increasing its dividend each year for at least 50 years which makes it part of the Dividend Kings list. The Coca-Cola Co (NYSE:KO) has been struggling with weak sales amid a stronger dollar and changes in consumer tastes, but the company is working on turning things around by implementing a number of plans. Most recently, The Coca-Cola Co (NYSE:KO) has been focusing on lower-calorie beverages and smaller packages for soda drinks and some analysts expect positive changes from these moves as soon as next year.