Warren Buffett Dividend Stocks by Sectors and Industries

5. Chevron Corporation (NYSE:CVX)

Berkshire Hathaway’s Stake Value: $18,553,059,728

Sector: Energy

Industry: Oil & Gas Integrated

Chevron Corporation (NYSE:CVX) ranks fifth on our list of the best Warren Buffett dividend stocks. The American energy company is known for its generous dividends, maintaining regular payouts since 1984. Moreover, the company has raised its dividends consistently for the past 37 years. It currently offers a quarterly dividend of $0.63 per share and has a dividend yield of 4.49%, as of August 21.

Oil companies have traditionally preferred using dividends as a way to return capital to shareholders. Even during periods of low oil prices, they often take on debt and leverage their assets to maintain these payouts. However, Chevron Corporation (NYSE:CVX) stands out from this trend. The company is attracting investors due to its strong cash flow, which provides a reliable cushion against the volatility of oil prices. In the second quarter of 2024, the company reported an operating cash flow of $6.3 billion and its free cash flow came in at $2.3 billion. Due to this solid cash flow generation, it returned $6 billion to shareholders through dividends and share repurchases. This marked the company’s ninth consecutive quarter of providing over $5 billion in shareholder returns.

Warren Buffett started building its position in Chevron Corporation (NYSE:CVX) during the third quarter of 2020 with shares worth over $3 billion. Over the years, his hedge fund has gradually increased its stake in the company. In the second quarter of 2024, the fund made a slight adjustment to its stake in CVX, reducing it by 4%. Still, it is the firm’s fifth-largest holding, making up 6.62% of its portfolio.

As of the end of the June quarter of 2024, 64 hedge funds tracked by Insider Monkey held stakes in Chevron Corporation (NYSE:CVX), up from 62 in the previous quarter. These stakes have a total value of over $22.4 billion.