5 Best Value Stocks To Buy According To Warren Buffett

3. Verizon Communications Inc. (NYSE:VZ)

Berkshire Hathaway’s Stake Value: $8,898,941,000
Percent of Berkshire Hathaway 13F Portfolio: 3.03%
Number of Hedge Fund Holders: 63
PE Ratio (TTM): 10.64

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunication company, which ranks third on our list of the best value stocks to buy according to Warren Buffett. 

As of Q2 2021, Berkshire Hathaway holds 158.8 million shares in Verizon Communications Inc. (NYSE:VZ), valued at over $8.89 billion. The company represents 3.03% of the hedge fund’s 13F portfolio. On September 2, Verizon Communications Inc. (NYSE:VZ) announced a 2% increase in its quarterly dividend to $0.64 per share, yielding 4.66%. This July, JPMorgan raised its price target on Verizon Communications Inc. (NYSE:VZ) to $65, while keeping an ‘Overweight’ rating on the shares. The company has a trailing-twelve-month P/E ratio of 10.64.

As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Verizon Communications Inc. (NYSE:VZ), down from 69 in the previous quarter. The total value of these stakes is approximately $11 billion. 

Miller/Howard Investments mentioned Verizon Communications Inc. (NYSE:VZ) in its Q1 2021 investor letter. Here is what the firm has to say: 

“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”