In this article, we discuss Warren Buffett’s dividend stocks by sectors and industries. You can skip our detailed analysis of Warren Buffett’s portfolio and dividend stocks, and go directly to read 5 Warren Buffett Dividend Stocks by Sectors and Industries.
Warren Buffett, one of the most successful investors in history, has shown a preference for investing in dividend stocks throughout his career. The CEO of Berkshire Hathaway has often mentioned that he likes companies with a history of consistent and growing dividends. These stocks are attractive to him because they provide a steady stream of income, which he views as a source of cash flow that can be reinvested in other opportunities. The Coca-Cola Company (NYSE:KO), American Express Company (NYSE:AXP), and Chevron Corporation (NYSE:CVX) are some of the most prominent Warren Buffett dividend stocks that the billionaire has been investing in for quite some time.
Buffett’s dividend investing strategy is a cornerstone of his successful approach to stock market investing. He is known for his patient approach to investing and buying stocks with the intention of holding them for the long term, often for years or even decades. This long-term perspective allows him to benefit from the power of compounding and ride out market volatility. In one of our previous articles, we reported Buffett’s dedication to long-term investing through his ownership of The Coca-Cola Company (NYSE:KO). Back in 1994, Berkshire Hathaway received $75 million in cash dividends from its $1.3 billion investment in Coca-Cola. Fast forward to last year, and that dividend payment saw a remarkable increase, reaching $704 million. This shows how Buffett’s patient approach can lead to substantial returns over time.
Buffett’s investment philosophy of holding stocks for the long haul is widely regarded as a key factor in his success as an investor. Peter Kunhardt, a director of the HBO documentary “Becoming Warren Buffett,” explained in a 2017 interview that Buffett recognizes that “you don’t have to trade things all the time; you can sit on things, too. You don’t have to make many decisions in life to make a lot of money.”
Buffett pays close attention to the sectors and industries he is investing in as a fundamental part of his investment strategy. As of the end of Q2 2023, the tech sector dominated his portfolio, while financials, basic materials, and consumer goods also made up significant portions of his investments. In this article, we will take a look at some of his best dividend stock picks from different sectors and industries.
Our Methodology:
For this article, we analyzed Berkshire Hathaway’s 13F portfolio as of the second quarter of 2023 and picked dividend stocks from the portfolio. We mentioned the sectors and industries these stocks belong to and ranked them in ascending order of the hedge fund’s stake in them during Q2 2023.
18. Mondelez International, Inc. (NASDAQ:MDLZ)
Berkshire Hathaway’s Stake Value: $42,159,320
Sector: Consumer Staples
Industry: Confectioners
Mondelez International, Inc. (NASDAQ:MDLZ) is an American multinational food and beverage company that owns a wide range of well-known brands in various categories. At the end of Q2 2023, Berkshire Hathaway owned stakes worth over $42.1 million in the company, which represented 0.01% of its 13F portfolio.
Mondelez International, Inc. (NASDAQ:MDLZ), one of the best Warren Buffett dividend stocks, currently pays a quarterly dividend of $0.385 per share. The company has been raising its dividends consistently for the past nine years. The stock has a dividend yield of 2.45%, as of September 5.
At the end of Q2 2023, 55 hedge funds tracked by Insider Monkey reported having stakes in Mondelez International, Inc. (NASDAQ:MDLZ), up from 51 in the previous quarter. The collective value of these stakes is over $1.74 billion. Among these hedge funds, Holocene Advisors was the company’s leading stakeholder in Q2.
17. The Procter & Gamble Company (NYSE:PG)
Berkshire Hathaway’s Stake Value: $47,858,796
Sector: Consumer Staples
Industry: Household & Personal Products
The Procter & Gamble Company (NYSE:PG) is an Ohio-based multinational consumer goods company that manufactures a wide range of related products. It is one of the best Warren Buffett dividend stocks as it has been growing its dividends for 67 consecutive years. The company offers a quarterly dividend of $0.9407 per share and has a dividend yield of 2.47%, as of September 5.
The Procter & Gamble Company (NYSE:PG) made up 0.01% of Berkshire Hathaway’s portfolio as the fund owned stakes worth over $47.8 million in the company. The hedge fund started investing in the company in 2005.
As of the close of Q2 2023, 74 hedge funds in Insider Monkey’s database reported having stakes in The Procter & Gamble Company (NYSE:PG), worth collectively over $5.34 billion.
16. Johnson & Johnson (NYSE:JNJ)
Berkshire Hathaway’s Stake Value: $54,141,592
Sector: Healthcare
Industry: Drug Manufacturers—General
Johnson & Johnson (NYSE:JNJ) is next on our list of the best Warren Buffett dividend stocks. The hedge fund held 327,100 shares in the company at the end of Q2 2023, worth over $54 million. The company represented 0.01% of the firm’s 13F portfolio.
Johnson & Johnson (NYSE:JNJ), one of the best Warren Buffett dividend stocks, has raised its dividends consistently for the past 61 years. The company currently pays a quarterly dividend of $1.19 per share and has a dividend yield of 2.96%, as of September 5.
Johnson & Johnson (NYSE:JNJ) was a part of 88 hedge fund portfolios at the end of Q2 2023, up from 86 a quarter earlier, according to Insider Monkey’s database. The consolidated value of stakes owned by these hedge funds is over $4.1 billion.
15. D.R. Horton, Inc. (NYSE:DHI)
Berkshire Hathaway’s Stake Value: $726,454,496
Sector: Consumer Discretionary
Industry: Residential Construction
D.R. Horton, Inc. (NYSE:DHI) is one of the largest home construction companies in the US. The company operates in the residential construction industry and is engaged in a wide range of related activities. On July 20, the company declared a quarterly dividend of $0.25 per share, which was in line with its previous dividend. It has been raising its dividends consistently for the past 10 years, which makes it one of the best Warren Buffett dividend stocks. The stock’s dividend yield on September 5 came in at 0.88%.
Berkshire Hathaway opened its position in D.R. Horton, Inc. (NYSE:DHI) during the second quarter of 2023 with roughly 6 million shares, worth over $726.4 million. The company represented 0.2% of the firm’s 13F portfolio.
The number of hedge funds tracked by Insider Monkey owning stakes in D.R. Horton, Inc. (NYSE:DHI) grew to 54 in Q2 2023, from 46 in the previous quarter. The collective value of these stakes is over $2.85 billion.
14. Ally Financial Inc. (NYSE:ALLY)
Berkshire Hathaway’s Stake Value: $783,290,001
Sector: Financials
Industry: Credit Services
Ally Financial Inc. (NYSE:ALLY) is an American financial services company that is well-known for its auto finance business. In addition to this, the company offers a wide range of financial services to its consumers. At the end of Q2 2023, Berkshire Hathaway owned 29 million shares in the company, worth nearly $783.3 million. It constituted 0.22% of the firm’s 13F portfolio.
Ally Financial Inc. (NYSE:ALLY) currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 4.22%, as of September 5. The company is one of the best Warren Buffett dividend stocks as it has raised its payouts for six consecutive years.
Insider Monkey’s database of Q2 2023 indicated that 46 hedge funds owned stakes in Ally Financial Inc. (NYSE:ALLY), with a total value of over $1.87 billion. In addition to Warren Buffett, John Petry, Norbest Lou, and Howard Marks are also prominent stakeholders of the company in Q2.
13. Mastercard Incorporated (NYSE:MA)
Berkshire Hathaway’s Stake Value: $1,567,948,658
Sector: Financials
Industry: Credit Services
Mastercard Incorporated (NYSE:MA) is a multinational financial tech company that operates in the global payment processing and digital payments industry. The company currently offers a per-share dividend of $0.57 every quarter and has a dividend yield of 0.55%, as of September 5. Its dividend growth streak stands at 10 years, which makes MA one of the best Warren Buffett dividend stocks to buy now.
Berkshire Hathaway started investing in Mastercard Incorporated (NYSE:MA) in 2011 and in the most recent quarter, the hedge fund held stakes worth over $1.5 billion in the company. The hedge fund did not change its position in the company during the quarter. It made up 0.45% of the firm’s 13F portfolio.
At the end of Q2 2023, 139 hedge funds tracked by Insider Monkey presented a bullish stance on Mastercard Incorporated (NYSE:MA), up from 138 in the previous quarter. The collective value of these stakes is over $14.7 billion.
Baron Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q2 2023 investor letter. Here is what the firm has to say:
“We modestly trimmed Visa Inc., Mastercard Incorporated (NYSE:MA), and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.
Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo.”
12. Visa Inc. (NYSE:V)
Berkshire Hathaway’s Stake Value: $1,970,480,801
Sector: Financials
Industry: Credit Services
Visa Inc. (NYSE:V), a global financial tech company, reported that its payments volume in August grew by 7 compared to the same period last year. This growth was driven by slight improvements in important international markets compared to July.
Visa Inc. (NYSE:V) has raised its dividends every year since 2008 and currently pays a quarterly dividend of $0.45 per share. With a dividend yield of 0.73% as of September 5, V is one of the best Warren Buffett dividend stocks to consider.
At the end of Q2 2023, Berkshire Hathaway owned roughly 8.3 million shares in Visa Inc. (NYSE:V), worth nearly $2 billion. The company accounted for 0.56% of the firm’s 13F portfolio.
The number of hedge funds tracked by Insider Monkey owning stakes in Visa Inc. (NYSE:V) stood at 171 in Q2 2023. The consolidated value of these stakes is roughly $25 billion.
11. The Kroger Co. (NYSE:KR)
Berkshire Hathaway’s Stake Value: $2,350,000,000
Sector: Consumer Staples
Industry: Grocery Stores
The Kroger Co. (NYSE:KR) is an American supermarket chain and retail company that operates a wide range of businesses. On June 22, the company declared an 11.5% hike in its quarterly dividend to $0.29 per share. This marked the company’s 17th consecutive year of dividend growth, which places it as one of the best Warren Buffett dividend stocks on our list. The stock has a dividend yield of 2.58%, as of September 5.
Warren Buffett’s Berkshire Hathaway owned 50 million shares in The Kroger Co. (NYSE:KR) at the end of Q2 2023, worth over $2.3 billion. The company represented 0.67% of the firm’s portfolio.
At the end of June 2023, 43 hedge funds in Insider Monkey’s database were bullish on The Kroger Co. (NYSE:KR), the same as in the previous quarter. The consolidated value of these stakes is over $3.13 billion.
10. Citigroup Inc. (NYSE:C)
Berkshire Hathaway’s Stake Value: $2,543,470,454
Sector: Financials
Industry: Banks—Diversified
Citigroup Inc. (NYSE:C) is a multinational financial services company that offers a wide range of financial products and services to individual consumers and businesses. The company currently pays a quarterly dividend of $0.53 per share, growing by 3.98% in July this year. The stock has a dividend yield of 5.15%, as of September 5.
Warren Buffett started investing in Citigroup Inc. (NYSE:C) during the first quarter of 2022, purchasing shares worth roughly $3 billion. At the end of Q2 2023, the hedge fund owned over 55 million shares in the company, valued at over $2.5 billion. The company constituted 0.73% of the firm’s 13F portfolio.
The number of hedge funds tracked by Insider Monkey owning investments in Citigroup Inc. (NYSE:C) stood at 75 in Q2 2023, down from 79 in the previous quarter. The collective value of stakes owned by these hedge funds is over $6.7 billion.
9. HP Inc. (NYSE:HPQ)
Berkshire Hathaway’s Stake Value: $3,714,461,041
Sector: Information Technology
Industry: Computer Hardware
HP Inc. (NYSE:HPQ) is a multinational information technology company that is involved in a range of businesses related to computing and printing technologies. Berkshire Hathaway opened its position in the company during the first quarter of 2023. In the most recent quarter, the hedge fund held an HPQ stake worth over $3.7 billion, which represented 1.06% of its 13F portfolio.
HP Inc. (NYSE:HPQ) is one of the best Warren Buffett dividend stocks on our list as it has raised its dividends for 12 consecutive years. The company’s current quarterly dividend stands at $0.2625 per share for a dividend yield of 3.50%, as of September 5.
At the end of the June quarter of 2023, 46 hedge funds in our database were bullish on HP Inc. (NYSE:HPQ), growing from 37 in the previous quarter. Among these hedge funds, Millennium Management is one of the leading stakeholders of the company in Q2.
8. Moody’s Corporation (NYSE:MCO)
Berkshire Hathaway’s Stake Value: $8,578,175,206
Sector: Financials
Industry: Financial Data & Stock Exchanges
Moody’s Corporation (NYSE:MCO) is a New York-based financial services company that provides credit ratings, research, and related services to its consumers. The company has raised its dividends for 13 years running and offers a quarterly dividend of $0.77 per share. The stock’s dividend yield came in at 0.91%, as of September 5. It is among the best Warren Buffett dividend stocks.
Berkshire Hathaway started investing in Moody’s Corporation (NYSE:MCO) in 2000. At the end of Q2 2023, the hedge fund had over $8.5 billion worth of stakes in the company, which made up 2.46% of the fund’s 13F portfolio.
According to Insider Monkey’s database as of Q2 2023, 60 hedge funds owned stakes in Moody’s Corporation (NYSE:MCO), growing from 51 in the previous quarter. The collective value of these stakes is over $17 billion.
Akre Capital Management mentioned Moody’s Corporation (NYSE:MCO) 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. Moody’s Corporation (NYSE:MCO) recently announced a new strategic partnership with Microsoft to leverage A.I. into its global risk assessment products and their development. The top five positive contributors to performance during the quarter were Moody’s, Mastercard, CoStar, Constellation Software, and Adobe.”
7. The Kraft Heinz Company (NASDAQ:KHC)
Berkshire Hathaway’s Stake Value: $11,560,036,039
Sector: Consumer Staples
Industry: Packaged Foods
The Kraft Heinz Company (NASDAQ:KHC) is a multinational food and beverage conglomerate that is known for producing a wide range of well-known consumer food products. Berkshire Hathaway owned over 325.6 million shares in the company at the end of Q2 2023, with a value of over $11.5 billion. The company represented 3.31% of the hedge fund’s 13F portfolio.
The Kraft Heinz Company (NASDAQ:KHC), one of the best Warren Buffett dividend stocks, has been making regular dividend payments since its merger in 2015. It currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 4.92%, as of September 5.
At the end of Q2 2023, 39 hedge funds tracked by Insider Monkey reported having stakes in The Kraft Heinz Company (NASDAQ:KHC), up from 34 in the previous quarter. The consolidated value of these stakes is over $12.2 billion.
6. Occidental Petroleum Corporation (NYSE:OXY)
Berkshire Hathaway’s Stake Value: $13,178,796,490
Sector: Energy
Industry: Oil & Gas E&P
Occidental Petroleum Corporation (NYSE:OXY) is an international oil and gas exploration and production company that specializes in various aspects of the energy industry. On July 27, the company announced a quarterly dividend of $0.18 per share, which was in line with its previous dividend. The stock has a dividend yield of 1.10%, as reported on September 5.
During the second quarter of 2023, Berkshire Hathaway increased its stake by 6% in Occidental Petroleum Corporation (NYSE:OXY), holding a total stake worth over $13 billion. The company constituted 3.78% of the firm’s 13F portfolio.
Occidental Petroleum Corporation (NYSE:OXY) was a part of 73 hedge fund portfolios at the end of Q2 2023, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $15.4 billion.
Click to continue reading and see 5 Warren Buffett Dividend Stocks by Sectors and Industries.
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Disclosure. None. Warren Buffett Dividend Stocks by Sectors and Industries is originally published on Insider Monkey.
