Top 10 Dividend Stocks From Warren Buffett’s Portfolio
Each quarter, we get a look into Warren Buffett’s largest public investments. This insight can help us track down the top dividend stocks. Buffett has a proven track record, and anyone can follow his lead.
You can invest directly in his holding company Berkshire Hathaway (NYSE: BRK-B). Or you can pick individual stocks from his portfolio. Below, I’ll cover his best dividend stocks in 2020. They cover multiple sectors and have proven track records.
Then, below the list of stocks, you’ll see how I track Warren Buffett’s moves. You can use this same strategy to track other large institutional investors.
Warren Buffett’s Top 10 Dividend Stocks
- Apple (Nasdaq: AAPL)
- Bank of America (NYSE: BAC)
- Coca-Cola (NYSE: KO)
- American Express (NYSE: AXP)
- Kraft Heinz (Nasdaq: KHC)
- Wells Fargo (NYSE: WFC)
- Bank of New York Mellon (NYSE: BK)
- Visa (NYSE: V)
- General Motors (NYSE: GM)
- Kroger (NYSE: KR)
These are some of Warren Buffett’s largest dividend stock positions. Let’s take a closer look at some of the individual opportunities…
Also, feel free to check out this powerful investment calculator. It’s completely free to use, and you can see how big your portfolio can grow.
Top Five Companies: Highlights and Dividend Yields
Apple is by far Warren Buffett’s largest holding. His unrealized profit has climbed as high as $120 billion. And although Apple is just below a 1% dividend yield, it’s in a strong position to continue increasing its payout. So for income stability and growth, it might be a great opportunity for new investors.
If you’re looking for a higher dividend yield, Bank of America pays around 3%. That’s not a huge yield, but given the low-interest-rate world we inhabit, it’s great for a safe company. Banks are much healthier than they were in 2008-2009. After the Great Recession, regulators forced them to become better-capitalized.
Coca-Cola is one of Warren Buffett’s oldest top dividend stocks. He bought more than $1 billion worth in 1988, and the position has multiplied since. Coca-Cola continues to adapt to changing consumer demands, and this helps it support a dividend yield of more than 3%.
The pandemic has put downward pressure on American Express. Some forms of consumer spending have decreased, but there’s also been a bigger push into a cashless world. American Express is easily surviving the shutdown and will likely rebound with consumer spending. For now, investors can lock in close to a 2% dividend yield.
Kraft Heinz has gone through a rough patch and recently cut its dividend. After investors beat down its share price, though, its yield climbed above 5%. The management team now is improving marketing as well as cutting expenses. Kraft Heinz is still a dominant player and has the ability to produce healthy long-term returns.
How to Track Berkshire Hathaway’s Top Dividend Stocks
To find these investment opportunities, I looked at Berkshire Hathaway’s recent 13F filing. The SEC requires that these documents be submitted quarterly by institutional investment managers with at least $100 million in managed assets.
Here’s a link to Berkshire Hathaway’s 13F SEC filing page. When the company releases an update, you can find it there and compare it with previous filings to find position changes.
It’s also important to note that some funds are more useful than others to follow. Some big fund managers will take large positions without discussing the strategy behind them (they aren’t required to). For example, a hedge fund manager might be take a large short-term hedge position. There’s a bit of a delay with these filings, so that also sometimes makes the information less useful.
But in the case of Warren Buffett, we know his favorite holding period is forever (check out these Warren Buffett quotes). So tracking his top dividend stocks can be more informative.
I hope this information is helpful. Feel free to share it with friends and family. You can also sign up for our free e-letter below. It’s packed with investing tips and tricks from market experts.
About Brian Kehm
Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.