In this article, we will take a look at the 5 Best Value Dividend Stocks to Buy Now According to Warren Buffett. For deeper discussion and analysis, read 10 Best Value Dividend Stocks to Buy Now According to Warren Buffett.
5. Delta Air Lines, Inc. (NYSE:DAL)
Berkshire Hathaway’s Stake Value: $2,646,532,635
Forward P/E Ratio: 13.97
On May 26, UBS raised its price recommendation on Delta Air Lines, Inc. (NYSE:DAL) to $98 from $95. It reiterated a Buy rating on the shares. In a research note, the analyst said the firm sees the potential for roughly 50% EPS growth by 2027 for several airlines.
A few days later, on May 29, Deutsche Bank increased its price goal on Delta Air Lines to $90 from $80. It maintained a Buy rating on the stock. The firm said airlines that generate returns on invested capital above their weighted average cost of capital are in a stronger position to reduce debt and return capital to shareholders. According to the analyst, such carriers are also in “far better shape to weather an industry downturn, whether economically or geopolitically-driven.” Deutsche Bank added that only a small number of US airlines are positioned to demonstrate “durability and resiliency” in earnings and free cash flow during the “geopolitically-driven” 2026 downturn. The firm updated its airline sector price targets as part of what it described as a “value creation primer.”
Delta Air Lines, Inc. (NYSE:DAL) provides scheduled air transportation services for passengers and cargo across the United States and international markets.
4. The Kroger Co. (NYSE:KR)
Berkshire Hathaway’s Stake Value: $3,618,000,000
Forward P/E Ratio: 12.30
On June 11, JPMorgan lowered its price recommendation on The Kroger Co. (NYSE:KR) to $70 from $72 while keeping a Neutral rating on the stock. The change comes ahead of the company’s fiscal first-quarter earnings report on June 18. Analyst Thomas Palmer believes Kroger is likely to reaffirm its full-year guidance.
On May 21, Reuters reported that Kroger is preparing to lower prices on thousands of items as new CEO Greg Foran looks to regain market share from rivals such as Walmart, Costco, and Aldi. Foran, who took over as CEO in February, has been focused on improving efficiency across the business. The company is using savings from tighter sourcing practices, simpler operations, and cost-cutting initiatives to support lower prices and better customer service.
He said Kroger plans to help fund the price reductions by cutting costs in several areas, including importing merchandise directly and making more effective use of technology. The savings will then be reinvested into lower shelf prices for shoppers.
The Kroger Co. (NYSE:KR) is a food and drug retailer that operates supermarkets, multi-department stores, and fulfillment centers throughout the United States.
3. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake Value: $25,039,178,044
Forward P/E Ratio: 12.29
On June 4, Bank of America Corporation (NYSE:BAC) announced the appointment of Chip McLeod, a Merrill Lynch Wealth Management senior resident director, as president of Upstate South Carolina. He takes over from Stacy Brandon, who led the market for more than a decade before retiring after a 39-year career with the company.
In his new role, McLeod will oversee efforts to connect clients, employees, and local communities with Bank of America’s full range of services. He will also work across the company’s eight business lines to strengthen collaboration and support growth across the Upstate market.
A key part of his responsibility will be expanding Bank of America’s presence in the region by building local relationships and identifying opportunities to deepen ties with clients and communities. McLeod brings more than 30 years of experience in wealth management and financial services. He joined Merrill in 2007 and currently leads the firm’s operations in Spartanburg, South Carolina, where he oversees a team of 14 associates.
Bank of America Corporation (NYSE:BAC) is a bank holding company and financial holding company. Its business segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
2. The Coca-Cola Company (NYSE:KO)
Berkshire Hathaway’s Stake Value: $30,420,000,000
Forward P/E Ratio: 25.71
On June 12, Bernstein analyst Cristian Rios initiated coverage of The Coca-Cola Company (NYSE:KO) with a Market Perform rating. The analyst also set an $84 price target on the stock. The firm described Coca-Cola as a “high-quality compounder” and expressed confidence in the company’s North American business. At the same time, Rios is more cautious on Coca-Cola’s prospects in Latin America compared with broader market expectations. The analyst pointed to the expected impact of Mexico’s 2026 excise tax, which is likely to affect consumer demand and pricing. In a research note, he said the tax will “dampen” consumption and price realization.
Earlier, on June 10, Morgan Stanley analyst Dara Mohsenian reiterated that Coca-Cola remains the firm’s Top Pick. The analyst cited the company’s strong long-term organic sales growth outlook, supported by several recent developments. These include accelerating sales growth at Fairlife in U.S. scanner data over the past six weeks as additional production capacity comes online, along with continued pricing strength relative to other consumer packaged goods companies. Morgan Stanley maintained its Overweight rating on the stock and kept its $89 price target.
The Coca-Cola Company (NYSE:KO) is a beverage company with operations across Europe, the Middle East and Africa, Latin America, North America, Asia Pacific, and its Bottling Investments segment.
1. American Express Company (NYSE:AXP)
Berkshire Hathaway’s Stake Value: $30,420,000,000
Forward P/E Ratio: 17.89
On June 9, BofA analyst Mihir Bhatia reiterated a Buy rating on American Express Company (NYSE:AXP). He also maintained a $387 price target on the stock. The analyst said management’s update at a recent investor conference should strengthen investor confidence in the company’s outlook for both the second quarter and fiscal 2026. According to Bhatia, American Express reported that second-quarter billings are tracking slightly ahead of the 9% foreign exchange-adjusted growth recorded in the first quarter. The company also noted that spending among its premium customer base remains healthy, card acquisitions continue to be strong, and credit performance has remained stable.
In a research note, the analyst added that American Express highlighted the quality of the customers attracted by its products. BofA views this as an important advantage over many other consumer finance companies, as it allows the company to generate solid growth while maintaining credit quality.
American Express Company (NYSE:AXP) is a globally integrated payments company with card-issuing, merchant-acquiring, and card network operations. It provides products and services to consumers, small businesses, mid-sized companies, and large corporations around the world.
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READ NEXT: 12 Cash-Rich Stocks to Buy Right Now and 10 Best Dividend Stocks to Buy According to D. E. Shaw.
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