8. The Kroger Co (NYSE:KR)
The Oracle of Omaha has created a stake in the grocery store chain The Kroger Co (NYSE: KR) at the beginning of this year and has increased its position by 13% in the third quarter. Kroger offers a 2.30% dividend yield and it has raised dividends in the past fifteen consecutive years.
Kroger is ranked at 22nd place in Berkshire’s stock portfolio. Kroger has generated $29 billion in the latest quarterly revenue, up 6% from the previous year’s period. In addition, its operating profit jumped 33% from the year-ago period. The grocery store chain has recently increased the dividend by 13%, thanks to its strong cash generation potential. KR was recently featured in our article with the title 10 best cheap stocks to buy according to Ray Dalio.
7. AbbVie Inc. (NYSE:ABBV)
The legendary investors have bought several high dividend-paying drug stocks including AbbVie (NYSE: ABBV) during the September quarter. Berkshire has created a position in AbbVie with the purchase of 21 million shares valued at $1.8 billion. AbbVie accounts for 0.87% of Buffett’s 13F portfolio, representing the 15th largest stock holding.
AbbVie offers a quarterly dividend of $1.30 per share, yielding around 5%. The company has raised dividends in the past seven straight years. Since 2013, AbbVie has raised its quarterly dividend by 225%. Its dividends look safe considering the sustainable growth in financial numbers. AbbVie has generated 52% year over year revenue growth in the latest quarter while its cash flows are offering complete cover to dividend payments.
6. Visa (NYSE:V)
The payments service company Visa (NYSE: V) is among the dividend stocks Warren Buffett likes to hold in its portfolio. Visa has raised dividends in the past twelve straight years, with an average dividend growth rate of 20% in the past five years.
Visa currently offers a quarterly dividend of $0.32 per share. Warren Buffett’s Berkshire Hathaway holds 9.99 million shares of Visa valued at $1.9 billion, accounting for 0.87% of the overall stock portfolio. Berkshire first bought Visa in the third quarter of 2011. The shares of Visa soared almost 15% in the past twelve months, extending the five years gains to 170%.
Although revenue and earnings of the payment services company remained under pressure this year due to travel restrictions, the future fundamentals have started strengthening due to the discovery of the coronavirus vaccine – which is likely to improve international traveling.
Click to continue reading and see the top 5 Dividend Stocks Warren Buffett Likes The Most.
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Disclosure: No positions. 10 Dividend Stocks Warren Buffett Likes The Most is originally published at Insider Monkey.
