In this article, we discuss the 5 best dividend stocks to buy according to Warren Buffett. If you want to read our detailed analysis of Buffett’s hedge fund and his investment philosophy, go directly to read the 11 Best Dividend Stocks To Buy According To Warren Buffett.
5. The Kraft Heinz Company (NASDAQ:KHC)
Berkshire Hathaway’s Stake Value: $13,279,388,000
Percent of Berkshire Hathaway’s 13F Portfolio: 4.53%
Number of Hedge Fund Holders: 33
Dividend Yield: 4.35%
The Kraft Heinz Company (NASDAQ:KHC) is an American food company that holds over 200 iconic brands. The company stands fifth on our list of the best dividend stocks to buy according to Warren Buffett.
In Q2 2021, Berkshire Hathaway did not make changes to its position in The Kraft Heinz Company (NASDAQ:KHC). The hedge fund holds over 325.6 million shares in the company, with a total value of over $13.2 billion. The company accounts for 4.53% of the fund’s 13F portfolio. Recently, The Kraft Heinz Company (NASDAQ:KHC) announced its acquisition of the Brazilian condiments company, Hemmer, through which the company would promote its taste elevation strategy. On August 4, The Kraft Heinz Company (NASDAQ:KHC) announced a quarterly dividend of $0.40 per share, yielding 4.53%. The company has been growing its dividends for the past two years.
This September, Morgan Stanley assumed coverage of The Kraft Heinz Company (NASDAQ:KHC) with an ‘Equal Weight’ rating and a $37 price target. Since the beginning of the year, the stock delivered a 7.45% return to shareholders, while its 12-month returns came in at 18.23%.
As of Q2 2021, 33 hedge funds tracked by Insider Monkey have positions in The Kraft Heinz Company (NASDAQ:KHC), the same as in the previous quarter. These stakes are valued at $13.5 billion.
2. STORE Capital Corporation (NYSE:STOR)
Berkshire Hathaway’s Stake Value: $842,568,000
Percent of Berkshire Hathaway’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 13
Dividend Yield: 4.65%
STORE Capital Corporation (NYSE:STOR) stands fourth on our list of the best dividend stocks to buy according to Warren Buffett. It is an American real estate investment trust that is engaged in the management and acquisition of single-tenant real estate properties.
As of Q2 2021, Berkshire Hathaway holds over 24.4 million shares in STORE Capital Corporation (NYSE:STOR), valued at $842.5 million. The company represents 0.28% of the hedge fund’s 13F portfolio. Recently, S&P Global raised its outlook on STORE Capital Corporation (NYSE:STOR) to positive due to the company’s outstanding portfolio performance. On September 13, the company’s board increased its quarterly dividend by 7% to $0.385 per share, offering an annualized yield of 4.65%. STORE Capital Corporation (NYSE:STOR) has increased its dividend by 18.33% in the past three years. This August, Mizuho lifted its price target on STORE Capital Corporation (NYSE:STOR) to $37, while keeping a ‘Neutral’ rating on the shares. The stock gained 17.76% in the past year.
As of Q2 2021, 13 hedge funds tracked by Insider Monkey have positions in STORE Capital Corporation (NYSE:STOR), the same as in the previous quarter. These stakes are valued at $899 million.
3. Verizon Communications Inc. (NYSE:VZ)
Berkshire Hathaway’s Stake Value: $8,898,941,000
Percent of Berkshire Hathaway’s 13F Portfolio: 3.03%
Number of Hedge Fund Holders: 63
Dividend Yield: 4.71%
Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company that provides information and entertainment products and services to its consumers around the world. The company stands third on our list of the best dividend stocks to buy according to Warren Buffett.
In Q2 2021, Berkshire Hathaway did not change its position in Verizon Communications Inc. (NYSE:VZ) and holds roughly 159 million shares in the company. These stakes are valued at over $8.8 billion and the company currently accounts for 3.03% of the hedge fund’s 13F portfolio. On September 2, Verizon Communications Inc. (NYSE:VZ) increased its dividend by 2% at $0.64 per share, yielding 4.71%. In September, Raymond James reiterated its ‘Buy’ rating on Verizon Communications Inc. (NYSE:VZ), with a $64 price target. In Q2 2021, Verizon Communications Inc. (NYSE:VZ) posted an EPS of $1.37, beating the estimates by $0.07.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Verizon Communications Inc. (NYSE:VZ), compared with 69 in the previous quarter. These stakes are valued at over $10.9 billion.
2. AbbVie Inc. (NYSE:ABBV)
Berkshire Hathaway’s Stake Value: $2,312,258,000
Percent of Berkshire Hathaway’s 13F Portfolio: 0.78%
Number of Hedge Fund Holders: 82
Dividend Yield: 4.68%
As of Q2 2021, Berkshire Hathaway owns 20.5 million shares in AbbVie Inc. (NYSE:ABBV), valued at $2.3 billion. The company accounts for 0.78% of the hedge fund’s 13F portfolio. In September, JPMorgan lifted its price target on AbbVie Inc. (NYSE:ABBV) to $140, while keeping an ‘Overweight’ rating on the shares. The company pays an annual dividend of $5.20 per share, yielding 4.68%. AbbVie Inc. (NYSE:ABBV) has been growing its dividend for the past 49 years and its 3-year dividend growth stood at 84.3%. In Q2 2021, AbbVie Inc. (NYSE:ABBV) posted an EPS of $3.11, beating the estimates by $0.08. In the past year, the stock returned 26.77%.
The number of hedge funds having stakes in the company grew to 82 in Q2, compared with 72 in the previous quarter. The total value of these stakes is $5.35 billion.
1. Chevron Corporation (NYSE:CVX)
Berkshire Hathaway’s Stake Value: $2,421,999,000
Percent of Berkshire Hathaway’s 13F Portfolio: 0.82%
Number of Hedge Fund Holders: 50
Dividend Yield: 5.1%
Chevron Corporation (NYSE:CVX) tops our list of the best dividend stocks to buy according to Warren Buffett. It is an American multinational energy company and is the second-largest oil company in the U.S.
As of Q2 2021, Berkshire Hathaway owns over 23 million shares in Chevron Corporation (NYSE:CVX), valued at $2.42 billion. The company represents 0.82% of the hedge fund’s 13F portfolio. Recently, Chevron Corporation (NYSE:CVX) has announced that it plans to increase its total capital investment in lower-carbon energy businesses to $10 billion, by 2028. Along with this, the company also plans to invest $2 billion to reduce the carbon intensity of its operations.
Chevron Corporation (NYSE:CVX) pays an annual dividend of $5.36 per share, yielding 5.1%.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its Q1 2021 investor letter. Here is what the firm has to say:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
You can also take a look at 10 Stocks Warren Buffett is Selling and 10 Best Stocks to Buy According to Warren Buffett
