Investing

5 Warren Buffett Dividend Stocks That Could Help you Retire Rich

Lee Jackson

Published: January 8, 2024 8:10 am

Last Updated: January 10, 2024 5:19 pm

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.

At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends. For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.

We screened the current Berkshire Hathaway list for five of the highest-yielding stocks with ‘Strong Buy’ ratings across Wall Street. Buying these stocks and reinvesting the dividends is a sure path to a substantial total return. Over the year, consistent real return gains can help investors build wealth and retire rich.

Chevron

This integrated giant is a safer way for investors looking to get positioned in the energy sector and pays a rich 3.97% dividend. Chevron Corporation (NYSE: CVX) 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, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines
• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in the following:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting 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.

This is one of the two energy holdings in Berkshire Hathaway, which holds 110 million shares of the integrated giant.

Citigroup

This top bank has rallied nicely off the lows, and Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. 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
• Wealth management services.

Trading at just nine times the estimated 2024 earnings, this company looks very reasonable in a volatile stock market and a  sector that dramatically lagged in 2023. Plus, investors are paid a solid 3.88% dividend.

The Coca-Cola Company

This company remains a top Warren Buffet holding as he owns a massive 400 million shares, and Investors are paid a very dependable 3.02% 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
• Del Valle

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.

Kraft Heinz

Even in bad times, this company performs well, and shareholders are paid a very rich 4.24% dividend. The Kraft Heinz Company (NYSE: KHC) was formed almost 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 it derives 76% of its 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

Mondelez

This is another consumer sector giant that makes good sense for conservative accounts and pays a 2.32% dividend. Mondelez International, Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide.

The company offers

• Biscuits
• Cookies
• Crackers
• Salted snacks
• Chocolates
• Gums and candies
• Powdered beverages and coffee
• Cheese and grocery products

Its primary brand portfolio includes

• LU
• Nabisco
• Oreo
• Cadbury
• Cadbury Dairy Milk
• Milka chocolates
• Trident gum
• Jacobs Kaffee
• Tang powdered beverages

Mondelez International, Inc. sells its products to:

• Supermarket chains
• Wholesalers
• Supercenters
• Club stores
• Mass merchandisers
• Distributors
• Convenience stores
• Gasoline stations
• Drug stores
• Value stores