In this article, we will be looking at 5 dividend stocks that helped Warren Buffett make $4.6 billion in dividends. To read our detailed analysis of Buffett’s investment strategy and profile, you can go directly to see the 10 Dividend Stocks that Helped Warren Buffett Make $4.6 Billion in Dividends.
5. Verizon Communications Inc. (NYSE: VZ)
Number of Hedge Fund Holders: 63
Dividend Yield: 4.52%
Dividend Income Contributed: $399 million
Verizon Communications Inc. (NYSE: VZ), a communication services company, offers a range of communications, technology, and entertainment products and services across the globe. The company ranks 5th on our list of dividend stocks that helped Warren Buffett make $4.6 billion in dividends.
Cowen, as of this July, holds an Outperform rating on shares of Verizon Communications Inc. (NYSE: VZ). The firm also raised its price target on the stock in the same month, from $66 to $68.
In the second quarter of 2021, Verizon Communications Inc. (NYSE: VZ) had an EPS of $1.37, beating estimates by $0.07. The company’s revenue was $33.76 billion, up 10.89% year over year and beating estimates by $1.03 billion.
By the end of the second quarter of 2021, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Verizon Communications Inc. (NYSE: VZ) worth roughly $11 billion. This is compared to 69 hedge funds in the previous quarter with a total stake value of approximately $11.4 billion.
Miller/Howard Investments, an investment management firm, mentioned Verizon Communications Inc. (NYSE: VZ) in its first-quarter 2021 investor letter. Here’s what they said:
“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.”
4. The Kraft Heinz Company (NASDAQ: KHC)
Number of Hedge Fund Holders: 33
Dividend Yield: 4.33%
Dividend Income Contributed: $521 million
The Kraft Heinz Company (NASDAQ: KHC) is a food and beverage co company offering its products in the US, Canada, the UK, and across the globe. The company ranks 4th on our list of dividend stocks that helped Warren Buffett make $4.6 billion in dividends. Its products include condiments and sauces, appetizers, cheese and dairy, meals, meat, seafood, and a range of similar items.
As of this May, DZ Bank has a Hold rating on shares of The Kraft Heinz Company (NASDAQ: KHC).
In the second quarter of 2021, The Kraft Heinz Company (NASDAQ: KHC) had an EPS of $0.78, beating estimates by $0.06. The company’s revenue was $6.62 billion, beating estimates by $65.74 million. The Kraft Heinz Company (NASDAQ: KHC) has gained 7.95% year to date and 4.29% in the past year.
By the end of the second quarter of 2021, 33 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Kraft Heinz Company (NASDAQ: KHC) worth roughly $14 billion. This is compared to 33 hedge funds in the previous quarter with a total stake value of approximately $13.3 billion.
3. The Coca-Cola Company (NYSE: KO)
Number of Hedge Fund Holders: 62
Dividend Yield: 2.97%
Dividend Income Contributed: $672 million
The Coca-Cola Company (NYSE: KO) is a beverage company operating across the world to provide non-alcoholic drinks to consumers globally. The company ranks 3rd on our list of dividend stocks that helped Warren Buffett make $4.6 billion in dividends. It offers its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Fanta, and Fresca brands, among others.
Near the end of this July, Bill Chappell, an analyst at Truist, raised his price target on shares of The Coca-Cola Company (NYSE: KO) from $60 to $65. The analyst also reiterated a Buy rating on the stock at the same time.
In the second quarter of 2021, The Coca-Cola Company (NYSE: KO) had an EPS of $0.68, beating estimates by $0.12. The company’s revenue was $10.13 billion, up 41.61% year over year and beating estimates by $823.11 million. The Coca-Cola Company (NYSE: KO) has gained 12.75% in the past 6 months and 7.09% year to date.
By the end of the second quarter of 2021, 62 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Coca-Cola Company (NYSE: KO) worth roughly $25 billion. This is compared to 61 hedge funds in the previous quarter with a total stake value of approximately $25 billion.
2. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Dividend Yield: 0.6%
Dividend Income Contributed: $780 million
Apple Inc. (NASDAQ: AAPL) is one of the world’s largest tech giants and is next on our list of dividend stocks that helped Warren Buffett make $4.6 billion in dividends. The company is known for its highly successful smartphone brand, the iPhone, among a range of other products. It ranks 2nd on our list and is based in Cupertino, California.
Wedbush analyst Daniel Ives reiterated his Outperform rating on shares of Apple Inc. (NASDAQ: AAPL) just this August. The analyst also has a $185 price target on the stock.
In the fiscal third quarter of 2021, Apple Inc. (NASDAQ: AAPL) had an EPS of $1.30, beating estimates by $0.29. The company’s revenue was $81.43 billion, up 36.44% year over year and beating estimates by $8.09 billion. Apple Inc. (NASDAQ: AAPL) has gained 12.7% in the past 6 months and 13,1% year to date.
By the end of the second quarter of 2021, 138 hedge funds out of the 873 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL) worth roughly $146 billion. This is compared to 127 hedge funds in the previous quarter with a total stake value of approximately $131 billion.
1. Bank of America Corporation (NYSE: BAC)
Number of Hedge Fund Holders: 87
Dividend Yield: 2.06%
Dividend Income Contributed: $850 million
Bank of America Corporation (NYSE: BAC) is a financial services company offering a range of banking and financial products to consumers including small and middle-market businesses, individuals, institutional investors, large corporations, and governments. The company ranks 1st on our list of dividend stocks that helped Warren Buffett make $4.6 billion in dividends and operates from its headquarters in North Carolina.
At the start of July, David Konrad, an analyst at Keefe Bruyette, assumed coverage of shares of Bank of America Corporation (NYSE: BAC). The analyst holds a Market Perform rating on the stock alongside a $40 price target.
In the second quarter of 2021, Bank of America Corporation (NYSE: BAC) had an EPS of $1.03, beating estimates by $0.27. The company’s revenue was $21.47 billion but missed estimates by $330.18 million. Bank of America Corporation (NYSE: BAC) has gained 18.09% in the past 6 months and 35.83% year to date.
By the end of the second quarter of 2021, 87 hedge funds out of the 873 tracked by Insider Monkey held stakes in Bank of America Corporation (NYSE: BAC) worth roughly $46.5 billion. This is compared to 97 hedge funds in the previous quarter with a total stake value of approximately $45.3 billion.
You can also take a look at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and How Amazon Makes Money.
