Warren Buffett Dividend Stocks by Sectors and Industries

2. Bank of America Corporation (NYSE:BAC)

Berkshire Hathaway’s Stake Value: $41,076,524,279

Sector: Financials

Industry: Banks—Diversified

Bank of America Corporation (NYSE:BAC) ranks second on our list of the best Warren Buffett dividend stocks. Although the company remains Berkshire Hathaway’s second-largest holding at the end of Q2 2024, the hedge fund sold its shares in the company in late July and early August. In total, the hedge fund sold 90,422,124 shares, raising approximately $3.82 billion. Due to this, the stock declined by over 10% between July 17 and August 1. Analysts speculate that the decision to divest from BAC may be related to the bank’s sensitivity to interest rate changes. This transaction is not included in the Q2 2024 13F filing, which only covers purchases and sales up to June 30. The fund owned over 1 billion shares in the company, worth more than $41 billion. BAC represented 14.67% of the firm’s 13F portfolio.

Despite ongoing pressure from interest rates on financial stocks, analysts believe that Bank of America Corporation (NYSE:BAC) is now in a favorable position. ClearBridge Investments highlighted this in its Q1 2024 investor letter. Here is what the firm has to say:

“We added several new positions during the quarter. Our largest new addition was Bank of America Corporation (NYSE:BAC), one of the world’s leading financial institutions, serving some 66 million consumer and small business clients across the U.S. as well as large corporations, financial institutions and governments globally. We believe that the interest rate pressure that Bank of America faced in early 2023 has subsided, and risks surrounding deposit outflows have abated, which should allow the company to improve its book value and capital growth as well as benefit from a rebound of capital markets activity.”

Bank of America Corporation (NYSE:BAC) currently pays a quarterly dividend of $0.26 per share, having raised it by 8% in July this year. It is one of the best Warren Buffett dividend stocks as the company has never missed a dividend in over 26 years. The stock supports a dividend yield of 2.68%, as of August 21.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) jumped to 92 in Q2 2024, from 82 in the preceding quarter. These stakes are collectively valued at more than $48 billion.