In this article, we will take a look at the 10 Best Value Dividend Stocks to Buy Now According to Warren Buffett.
According to a June 13 Forbes report, Howard Marks highlighted that Warren Buffett built much of his success on a surprisingly small number of major winners. Marks noted that Charlie Munger once told him that the “vast majority of his own wealth came not from twelve winners, but only four.”
The lesson, according to Marks, was not about finding dozens of winning investments. It was about identifying a few exceptional companies, holding them for the long term, and avoiding significant losses along the way. Buffett’s investment approach evolved over time. Early in his career, he focused on buying so-called “cigar butts,” low-quality companies trading at very low prices with one last “puff” of value left. Under Munger’s influence, he shifted toward owning high-quality businesses for the long run. Buffett has often summed up that philosophy by saying, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Buffett learned the principles of stock selection from Benjamin Graham, the pioneer of value investing, and his professor at Columbia University. With guidance from Charles T. Munger, his longtime business partner and fellow Nebraskan, Buffett transformed Berkshire after taking control of the company in 1965. Together, they built what many investors view as one of the strongest examples of disciplined long-term investing.
The New York Times reported that despite several periods of underperformance, particularly in recent years, Buffett’s long-term record remains remarkable. Based on his calculations, Berkshire Hathaway generated a cumulative gain of 5,502,284% between 1964 and 2024. Over the same period, the S&P 500 returned 39,054%. Buffett’s average annual gain came to 19.9%, compared with 10.4% for the S&P 500.
Given this, we will take a look at some of the best value stocks according to Warren Buffett.
Our Methodology:
For this list, we scanned Berkshire Hathaway’s 13F portfolio as of Q1 2026 and identified dividend stocks. From there, we picked stocks with a forward P/E ratio around 25. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Jefferies Financial Group Inc. (NYSE:JEF)
Berkshire Hathaway’s Stake Value: $17,892,939
Forward P/E Ratio: 15.95
On June 9, Morgan Stanley raised its price recommendation on Jefferies Financial Group Inc. (NYSE:JEF) to $50 from $44. It reiterated an Equal Weight rating on the stock. The firm updated its estimates ahead of the company’s Q2 earnings release, which it expects during the final week of June.
A day earlier, on June 8, BMO Capital increased its price goal on Jefferies Financial to $60 from $42. It maintained a Market Perform rating ahead of the company’s Q2 results. The analyst noted that the stock’s setup appears much cleaner than it did last quarter, as litigation and loss-related issues have largely moved into the background while revenue trends have strengthened. According to the research note, investor attention is shifting back toward execution. The firm pointed to strong Equity Capital Markets (ECM) activity and improving advisory momentum as key drivers supporting the outlook.
Jefferies Financial Group Inc. (NYSE:JEF) is a global investment banking and capital markets company. Its operations are organized into two segments: Investment Banking and Capital Markets, and Asset Management.
9. Lennar Corporation (NYSE:LEN)
Berkshire Hathaway’s Stake Value: $19,995,576
Forward P/E Ratio: 14.66
Lennar Corporation (NYSE:LEN) reported its earnings on June 12. During the company’s Q2 2026 earnings call, Executive Chairman, CEO, and President Stuart Miller said Lennar delivered 20,519 homes during the quarter. It landed near the midpoint of its guidance range. He added that new orders totaled 21,749 homes, placing them close to the high end of the company’s expectations.
Miller also highlighted an improvement in profitability, noting that gross margin increased sequentially to 15.6%. Commenting on market conditions, Miller said the decline in sales incentives was an encouraging development. He noted that the sales incentive rate on delivered homes fell to 12.9% during the quarter, down from 14.1% in Q1 and 14.5% in Q4 2025. According to Miller, this was the first meaningful reduction in incentive levels and may indicate the start of a sustainable downward trend.
Ahead of the earnings release, BofA analyst Rafe Jadrosich lowered the firm’s price recommendation on LEN to $84 from $88. He reiterated an Underperform rating on the shares. The change came on June 11, before the company’s scheduled fiscal Q2 report. In a preview note to investors, the analyst said the firm expects results to be broadly in line with expectations and anticipates relatively flat sequential gross margin guidance for Q3. The analyst also pointed to downside risk for fiscal-year deliveries guidance or Q4 consensus gross margin if additional incentives are required to maintain delivery volumes. Reflecting a more cautious margin outlook, the firm reduced its FY26 and FY27 EPS estimates by 2% and 11%, respectively.
Lennar Corporation (NYSE:LEN) is a homebuilder and an originator of residential and commercial mortgage loans. The company also provides title insurance and closing services and develops multifamily rental properties.
8. Macy’s, Inc. (NYSE:M)
Berkshire Hathaway’s Stake Value: $54,963,842
Forward P/E Ratio: 10.93
On June 4, Telsey Advisory raised its price recommendation on Macy’s, Inc. (NYSE:M) to $23 from $20. It reiterated a Market Perform rating on the shares. The analyst told investors that Macy’s delivered a “solid” Q1 EPS beat and also increased its FY26 guidance. The firm believes the company has room to improve long-term profitability as it continues to optimize its store base. It also expects macroeconomic pressures, traffic challenges, and tariff-related headwinds to become more manageable over time.
The same day, Evercore ISI analyst Michael Binetti raised the firm’s price goal on Macy’s to $22 from $19 and maintained an In Line rating on the stock. Following a “solid” first quarter, the analyst told investors that the firm sees an opportunity for Macy’s to grow earnings per share in FY26.
Macy’s, Inc. (NYSE:M) is an omnichannel retail company. The company operates stores, websites, and mobile applications under its Macy’s, Bloomingdale’s, and Bluemercury brands. Through these platforms, it sells a wide range of products, including apparel and accessories for men, women, and children, cosmetics, home furnishings, and other consumer goods.
7. Constellation Brands, Inc. (NYSE:STZ)
Berkshire Hathaway’s Stake Value: $94,933,500
Forward P/E Ratio: 11.86
On May 29, TD Cowen reduced its price recommendation on Constellation Brands, Inc. (NYSE:STZ) to $174 from $190. It reiterated a Buy rating on the shares. Analyst Robert Moskow updated his forecasts ahead of the company’s Q1 earnings release and lowered its EPS estimate to reflect the timing of marketing investments tied to the upcoming World Cup. Even with that adjustment, TD Cowen left its full-year EPS estimate unchanged at $11.91.
On May 28, BofA also trimmed its price goal on Constellation Brands, lowering it to $152 from $154. It kept an Underperform rating on the stock. Analyst Peter Galbo cut his Q1 EPS forecast to $3.10 from $3.20, pointing to softer beer sales and weaker profitability in the wine and spirits business.
Constellation Brands, Inc. (NYSE:STZ) is a producer and marketer of beer, wine, and spirits, with operations spanning the United States, Mexico, New Zealand, and Italy.
6. Nucor Corporation (NYSE:NUE)
Berkshire Hathaway’s Stake Value: $660,686,383
Forward P/E Ratio: 17.99
On June 10, JPMorgan analyst Bill Peterson raised the firm’s price recommendation on Nucor Corporation (NYSE:NUE) to $282 from $240. He reiterated an Overweight rating on the shares. The update came as part of the firm’s mid-quarter review of steel companies. JPMorgan expects Nucor to deliver a solid Q2 earnings report and sees a “better-than-seasonal” outlook for the second half of 2026. The firm also continues to view the U.S. steel industry as a “relative safe haven.”
Earlier, on June 4, Wells Fargo raised its price goal on Nucor to $292 from $244. It kept an Overweight rating on the stock. The firm updated its steel sector models as part of a mid-quarter review and increased its steel price forecasts and earnings estimates. Wells Fargo expects steel market strength to continue through October. According to the analyst, “Unusually lean” service center inventories mean mills will need to replenish stock even if demand slows seasonally during the third quarter. The firm added that steel prices could come under pressure in the fourth quarter as supply begins to catch up with demand.
Nucor Corporation (NYSE:NUE) manufactures steel and steel products and operates facilities across the United States, Canada, and Mexico. The company also produces and sources ferrous and non-ferrous materials, primarily to support its steel manufacturing operations.
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