If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the entire world.
We screened the Berkshire Hathaway portfolio for the six stocks with among the highest dividend yields. In a world where total return may be the best action plan for 2024, these top companies look well positioned for a difficult first half as the market had a substantial fourth-quarter run and has come out of the gate slow to start the year.
In addition, while the rate hikes may be over, exuberance over rate cuts in March looks very short-sighted, as inflation remains sticky and remains above the Federal Reserve’s 2% target.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector and has a sweet 4.04% dividend. Chevron Corporation (NYSE: CVX | CVX Price Prediction) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
- Upstream
- Downstream
The Upstream segment is involved in the
- Exploration
- Development
- Production
- Transportation of crude oil and natural gas; processing, liquefaction, transportation
- Regasification associated with liquefied natural gas; transportation of crude oil through pipelines
- Transportation, storage, and marketing of natural gas and operates a gas-to-liquids plant.
The Downstream segment engages in
- Refining crude oil into petroleum products
- Marketing crude oil, refined products, and lubricants
- Manufacturing and marketing renewable fuelsTransporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
- Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives
- Cash management, debt financing, insurance operations, real estate, and technology businesses
Citigroup
This is a top bank that Warren Buffett bought a massive $2.5 billion worth of stock back in the summer of 2022 that pays a dependable 3.92% dividend. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.
Citigroup offers:
- Consumer banking and credit,
- Corporate and investment banking
- Securities brokerage, transaction services, and wealth management services
Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).
Trading at a still cheap 9.1 times estimated 2024 earnings; this company looks very reasonable in what could become a volatile stock market and in a sector that has dramatically lagged.
The Coca-Cola Company
This company remains a top Warren Buffet holding as he owns a massive 400 million shares and pays a dependable 3.08% dividend. The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the Company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke,
- Fanta,
- Sprite,
- Coca-Cola Zero,
- Vitaminwater,
- Powerade,
- Minute Maid,
- Simply,
- Georgia, and
- Del Valle.
Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.
Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers.
HP
Warren Buffett stunned Wall Street last year when Berkshire Hathaway reported a purchase of 121 million shares of the venerable tech giant, but he has been selling shares recently, which yield 4.62%. HP, Inc. (NYSE: HPQ) provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally.
The company operates through three segments:
- Personal Systems
- Printing
- Corporate Investments
The Personal Systems segment offers commercial and consumer:
- Desktop and notebook personal computers
- Workstations
- Thin clients
- Commercial mobility devices
- Retail point-of-sale systems, displays and peripherals
- Software, support, and services
The printing segment provides the following:
- Consumer and commercial printer hardware
- Supplies, solutions, and services
The corporate investments segment is involved in the following:
- HP Labs’ business incubation and investment projects
- It serves individual consumers, small- and medium-sized businesses, and large enterprises, including government, health, and education customers
Jefferies Financial
This broker-dealer is a newer Warren Buffett holding and is an excellent idea for those looking for financials besides money center banks. It pays a 2.97% dividend. Jefferies Financial Group, Inc. (NYSE: JEF) engages in investment banking capital markets and asset management businesses in:
- The Americas
- Europe
- Middle East
- Africa
- Asia.
The company operates in:
- Investment Banking and Capital Markets,
- Asset Management,
- Merchant Banking, and
- Corporate segments.
Jefferies provides:
- Investment banking
- Advisory services concerning mergers or acquisitions
- Restructurings or recapitalizations
- Private capital advisory transactions
- Equity and debt underwriting
- Corporate lending.
In addition, Jefferies offers financing, securities lending, and other prime brokerage services, equities research and finance, and wealth management services.
Further, it provides clients with:
- Sales and trading of investment-grade corporate bonds
- U.S. and European government and agency securities
- Municipal bonds, mortgage-backed and asset-backed securities
- Leveraged loans
- Consumer loans
- High yield and distressed securities
- Emerging markets debt
- Interest rate and credit derivative products, as well as foreign exchange trade execution and securitization
It manages, invests in, and provides services to various alternative asset management platforms across a spectrum of investment strategies and asset classes.
Kraft Heinz
Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 4.35% dividend. The Kraft Heinz Company (NYSE: KHC) was formed almost six years ago via the merger of H.J. Heinz Company and Kraft Foods Group.
The company is a leading global food company with $25 billion of estimated annual revenues generated by well-known brands such as Kraft, Heinz, Oscar Meyer, and Maxwell House.
Kraft Heinz is North America’s third-largest food and beverage manufacturer and derives 76% of revenues from that market. And 24% from International.
The Company’s additional brands include:
- ABC
- Capri Sun
- Classico
- Jell-O
- Kool-Aid
- Lunchables
- Ore-Ida
- Oscar Mayer
- Philadelphia
- Planters
- Plasmon
- Quero
- Weight Watchers
- Smart Ones
- Velveeta
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