Five Dividend Stocks Billionaires Like

#3 The Coca-Cola Co (NYSE:KO)

— Nr. of Billionaires Holding Shares (as of June 30): 10

— Total Value of Holdings (as of June 30): $19.29 billion

A total of 55 investors from our database, including 10 billionaires owned shares of The Coca-Cola Co (NYSE:KO) at the end of the second quarter, with Warren Buffett‘s Berkshire Hathaway among them. Many billionaires own Coca-Cola because its products don’t cost very much and demand doesn’t fall as hard during recessions. Due to those characteristics, Coca Cola’s cash flows are very stable and its dividend is very secure. Coca-Cola has raised its dividend payout every year for 53 straight years, giving it a current annual dividend of $1.40, which translates into a 3.2% yield at current prices.

#2 Intel Corporation (NASDAQ:INTC)

— Nr. of Billionaires Holding Shares (as of June 30): 11

— Total Value of Holdings (as of June 30): $1.62 billion

With 11 billionaires out of 57 funds tracked by us that were bullish on the stock at the end of June, Intel Corporation (NASDAQ:INTC) is the second favorite dividend stock on our list. Although its dividend history isn’t as great as Coca-Cola’s, Intel has nevertheless maintained or raised its dividend every year since 1993. With a payout ratio of 0.46 and an expected next 5-year annual growth rate of 10%, billionaires expect Intel to maintain its tradition of raising its dividend for the foreseeable future too. Helping to secure the company’s $1.04 per share annual dividend is management’s focus on cost cuts and Intel’s progress in emerging growth markets such as the Internet of Things.

#1 Pfizer Inc. (NYSE:PFE)

— Nr. of Billionaires Holding Shares (as of June 30): 12

— Total Value of Holdings (as of June 30): $2.54 billion

At the end of June 12 billionaires from our database held shares of Pfizer Inc. (NYSE:PFE) in their portfolios and, overall, 94 investors tracked by us reported long positions in the stock. One reason for Pfizer’s popularity among the smart money crowd is good execution. Pfizer soundly beat expectations for its second quarter, with EPS of $0.64 on revenue of $13.15 billion, which topped the consensus estimates by $0.02 and $140 million, respectively. Guidance is similarly upbeat, with the company reaffirming adjusted EPS guidance of $2.38 to $2.48 for the full year. The other reason is Pfizer’s quarterly dividend of $0.30 per share, giving it a safe dividend yield of 3.45%, or over twice as high as the current 10-year Treasury yield.

Disclosure: none