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Warren Buffett Selling Millions of Shares - Does He See a Market Crash ? 4 Safe Haven Dividend Stocks
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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.
Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever”, so it’s not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, that 7 top companies make up almost 75% of the funds’ total holdings.
One of those top companies is Apple Inc. (NASDAQ: AAPL), which Mr. Buffett has been selling hand-over-fist this year. He has sold so much of that stock that he now has a stunning $325 million in cash, up from $277 billion just last quarter, likely in the form of short-term Treasury Bills and Notes. After cutting the position in half in the second quarter, Mr. Buffett cut his Apple holdings by 25%. This comes after he cut his holdings in Bank Of America Corporation (NYSE: BAC) by 20% earlier this year.
Another worrisome data point is that Mr. Buffett stopped buying back shares of his conglomerate Berkshire Hathaway in the third quarter, breaking a six-year streak during which he allocated $78 billion to buybacks. That amount makes Berkshire Hathaway Inc. (NYSE: BRK-A) his favorite stock and the lack of buybacks in the recent quarter suggests that he thinks Berkshire’s shares are overvalued.
If Warren Buffett thinks Berkshire Hathaway is overvalued, you can only imagine what he thinks about the S&P 500. The venerable index trades at nearly 25 times earnings, versus a historical price-to-earnings ratio of 19.4 and 20 times earnings just a year ago. If Warren Buffett is selling and not buying his own beloved company, it’s time for our readers to take some profits and move to safer ground. We have four top safe-haven dividend stock plus an open-end mutual fund that are super-safe ideas now.
Why do we cover safe dividend stocks?
Safe dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. It is a desirable financial strategy for those seeking to diversify their income streams, achieve economic independence, or protect their wealth.
AT&T
The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 5.02%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
Chevron
This integrated giant is a safer option for investors looking to position themselves in the energy sector. It has a sweet 4.26% 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 following:
- 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 and transportation, storage
- Marketing of natural gas, as well as operating 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 fuels
- Transporting crude oil and refined 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
It is also involved in cash management, debt financing, insurance operations, real estate, and technology businesses.
Chevron Corporation announced last fall that it has entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.
McDonalds
Even when times get rough, the golden arches helps consumers feed a family on a budget at a reasnabale price and alos pays a dependable 2.40% dividend. McDonalds Corporation (NYSE: MCD) operates and franchises restaurants under the McDonald’s brand in the United States and internationally.
It offers food and beverages, including:
- Hamburgers and cheeseburgers
- Various chicken sandwiches,
- Fries
- Shakes, desserts, sundaes, cookies, pies
- Soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.
The company owns and operates under various structures comprising conventional franchises, developmental licenses, or affiliates. McDonald’s Corporation was founded in 1940 and is based in Chicago, Illinois.
Pfizer
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been beaten down over the last few years as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 5.90% dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands - Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Trading not far from its lowest split-adjusted level in thirteen years, the stock is an incredible bargain at current levels and pays a massive dividend.
The pharmaceutical giant reported third-quarter 2024 Revenues of $17.7 Billion, representing 32% Year-over-Year operational growth. Earlier this year, the company raised full-year 2024 revenue guidance to $59.5 to $62.5 billion and lifted adjusted diluted EPS guidance to $2.45 to $2.65. Patient investors will receive one of the highest blue-chip dividends, and shares trade at a reasonable 9.88 times estimated 2025 earnings.
BlackRock Liquidity Funds – FedFund
For investors that fear a market crash this is the perfect solution. Paying more than most bank high-yield money market funds the BlackRock Liquidity Funds – FedFund (NASDAQ: BFCXX) seeks a high a level of current income as is consistent with liquidity and stability of principal.
The Fund invests at least 80% of its net assets in U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities. The current yield paid monthly is 4.81%
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