5 Best Dividend Stocks To Buy According To Warren Buffett

2. Bank of America Corporation (NYSE: BAC)

The banking giant Bank of America Corporation (NYSE: BAC) is in the list of best dividend stocks to buy according to Warren Buffett. This is because the bank has a history of offering substantial cash returns to shareholders. Excluding the pandemic year, the company had increased dividends at a high double-digit rate in the past five years.  Its dividend yield is currently hovering close to 2%.

GoodHaven Capital Management, a concentrated portfolio investment management firm, bought Bank of America shares in the last six months. Here is what GoodHaven Capital Management stated in the Q4 investor letter:

“Finally, the Federal Reserve has just relaxed share buyback restrictions for Bank of America (and some of their brethren) – a positive development. We added to Bank of America during the last six months. We continue to find plenty of potential new investments to consider, even after the market’s recent material rebound.”