Warren Buffett Dividend Stocks by Sectors and Industries

10. Citigroup Inc. (NYSE:C)

Berkshire Hathaway’s Stake Value: $3,505,834,818

Sector: Financial Services

Industry:  Insurance – Property & Casualty

Citigroup Inc. (NYSE:C) is an American multinational investment banking and financial services company. Berkshire Hathaway did not change its position in the company during the second quarter of 2024. The hedge fund owned over 55.2 million shares in the company at the end of the quarter, with a value of over $3.5 billion. The company represented 1.25% of Buffett’s portfolio.

The recent stress test reaffirmed the strength of Citigroup Inc. (NYSE:C)’s balance sheet, reflected in a CET1 ratio of 13.6%. As a result, the company is increasing its dividend by 6%. Significant strides have been made in streamlining operations, both strategically and organizationally. In addition, the company is modernizing its infrastructure to improve client service and automating processes to enhance controls. In its latest earnings report, the company emphasized its commitment to continuing its transformation and strategic execution to meet its medium-term goals and enhance returns over time. The stock has delivered a 13.7% return to shareholders since the start of 2024.

Diamond Hill Capital highlighted Citigroup Inc. (NYSE:C)’s restructuring efforts in its Q1 2024 investor letter. Here is what the firm has to say:

“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”

Citigroup Inc. (NYSE:C) is a strong dividend payer with a low payout ratio of just 34%. It currently pays a quarterly dividend of $0.56 per share and has a dividend yield of 3.71%, as of August 21. It is one of the best Warren Buffett dividend stocks with 34 consecutive years of dividend payments.

According to Insider Monkey’s database of Q2 2024, 85 hedge funds held stakes in Citigroup Inc. (NYSE:C), compared with 94 in the previous quarter. These stakes have a collective value of over $10.6 billion. Ken Fisher’s Fisher Asset Management was one of the company’s leading stakeholders in Q2.