Warren Buffett’s 10 Best Dividend Stocks to Buy Now

There are more than 50 actions in Berkshire Hathawayit is (BRK.A 3.75%)(BRK.B 4.02%) portfolio of stocks, many of which were handpicked by Warren Buffett himself. And since Buffett is a reliable believer in passive income, it shouldn’t come as much of a surprise that many Berkshire stocks are paying dividends.

While strong dividend stocks have generally outperformed growth stocks, they haven’t exactly been immune to the recent market downturn. As a result, some of Berkshire’s top dividend-paying stocks appear to be excellent opportunities for income-seeking investors.

In no particular order, here are 10 dividend-paying stocks from Berkshire’s portfolio that seem like particularly strong buying opportunities right now.

Coca-Cola (yield: 2.8%)

It’s hard to call Coca Cola (KO 1.88%) a “cheap” stock right now, as it’s only about 6% below its peak and is easily outperforming the S&P 500 in the current downturn. However, it’s hard to find a more stable and predictable dividend stock to create a steadily growing stream of income in your portfolio. In fact, Coca-Cola recently announced its 60th consecutive annual dividend increase.

Store capital (yield: 5.7%)

The only real estate investment trust, or REIT, in the Berkshire portfolio, Store capital (STOCK 2.27%) has a portfolio of single-tenant commercial properties occupied by tenants in the service, retail or manufacturing sectors. The store’s tenants are generally well positioned to weather recessions and e-commerce disruptions, and the company is not only one of the most productive stocks in Berkshire’s portfolio, but has given investors a raise every year since its launch. Initial Public Offering.

Bank of America (yield: 2.7%)

Bank of America (BAC 0.72%) is one of Berkshire’s largest investments, and it was cut significantly in the recent market decline, down 36% from highs. However, the bank is well capitalized and should hold up very well in all economic conditions. In fact, as one of the most interest rate sensitive banks, Bank of America could be one of the biggest beneficiaries of rising interest rates in 2022 and 2023.

Chevron (yield: 3.8%)

A more recent investment for Berkshire, Chevron (CLC 1.64%) quickly became one of the largest positions in the portfolio. Although Chevron is one of the best performing stocks in the portfolio, up 35% over the past year, it has moved significantly away from recent highs and could continue to outperform if oil prices remain high.

Mastercard (yield: 0.6%)

MasterCard (MY 4.34%) isn’t exactly a high-yield dividend stock, but it’s a powerful company. There is essentially a duopoly in the payment network space (the other comes later in the list), and with many parts of the world still in the early stages of the cashless payment revolution and an estimated global payment opportunity at $185 trillion, Mastercard still has plenty of room to grow.

US Bancorp (yield: 3.9%)

American bank (USB 3.94%) is down 26% from its recent highs, but it is still one of the most expensive stocks of major banks on a price-to-book basis. Even so, you get what you pay for with this one. US Bancorp has a fantastic track record of profitability and responsible lending – in fact, it was one of the few banks to remain profitable throughout the 2008-09 financial crisis.

Vanguard S&P 500 ETF (return: 1.6%)

Technically, it’s not a stock, but an exchange-traded fund, or ETF. However, Buffett has repeatedly said that the best investment most people can make is a low-cost S&P 500 index fund like this, so it’s worth including on the list. The Vanguard S&P 500 ETF (VOO 3.11%) invests in the 500 companies of the S&P 500 and is essentially a bet on the American company as a whole.

Visa (Return: 0.7%)

Berkshire owns both Mastercard and Visa (V 4.51%) in his portfolio, and both are great stocks to own, especially at around 20% off the highs. With a huge global payments opportunity, this industry leader could still have plenty of room for growth, and since it makes its money by taking a percentage of every transaction on its network, it could actually end up being a net profit. of inflation.

Apple (Yield: 0.6%)

Apple (AAPL 2.45%) is the biggest investment in Berkshire’s stock portfolio, and it’s not even close. Buffett isn’t the most tech-savvy investor, but he knows a great company when he sees one. Apple has an incredibly loyal customer base, massive pricing power, and a great history of innovation. With shares 22% below highs, now may be the time to take a closer look at this unstoppable company.

American Express (Return: 1.3%)

American Express (AXP 3.18%) is down 27% from its highs, but it’s a top notch company that deserves a closer look. Unlike Visa and Mastercard, Amex is a lender and a payment processor and benefits from both commission and interest income. Not only is its interest income expected to rise with global interest rates, but inflation could end up driving up trading volume over the next few years.

A collection of rock-solid businesses that should generate strong returns over time

It’s hard to make a strong case against any of these companies as long-term investments. The best choice(s) for you therefore depends on your income needs and investment objectives. Buffett has absolutely no idea what any of them will be up to in the next few weeks or months (and neither do I), but these are rock-solid companies that should perform very well. long-term investors.

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