5 Best Dividend Stocks to Buy According to Warren Buffett

2. Bank of America Corp (NYSE:BAC)

Warren Buffett’s Stake: $34,776,127,042

With a 2.86% dividend yield and a dominance in the banking industry, Bank of America Corp (NYSE:BAC) is among the top dividend stocks in Warren Buffett’s portfolio.

Smead Value Fund made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2023 investor letter:

“Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).

On the downside, Target (TGT), Bank of America Corporation (NYSE:BAC) and Pfizer (PFE) detracted the most in the first nine months of the year. Inverted yield curves are historically lousy for the banks, so the weak performance for BAC is no surprise.”