2 Blue Chip Dividend Giants Make Up Almost 40% of Warren Buffett's Portfolio

Investing

Published: February 8, 2025 7:42 am

If any investor has stood the test of time, it is 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. At age 94, his days of managing money may end sooner rather than later, but his legacy of greatness will remain forever.

24/7 Wall St. Key Points:

Berkshire Hathaway outperformed the S&P 500 in 2024 by 25.5% versus 23.3%.
Over the past 20 years, Berkshire Hathaway delivered an average annual return of 12.1%, compared to the S&P 500’s 11.5%.
Warren Buffett has a massive $325 billion in cash and T-bills.
Would Berkshire Hathaway shares be a good investment for you? Why not meet with an experienced financial planner near you and find out? Click here to get started. (Sponsored)

Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever.” So it is not surprising that, for all of the success and stature Berkshire Hathaway has in the investment world, just seven top companies make up almost 74% of the funds’ total holdings. While much more concentrated than most portfolio managers would consider, the strategy has worked for Berkshire Hathaway investors for years and likely will continue to do so.

Given Buffett’s massive concentration of holdings, we focused on the two stocks that comprise a staggering 39% of Berkshire Hathaway. It is important to remember that Berkshire Hathaway has sizable stakes in many well-known private companies, such as Acme Brick, Benjamin Moore, Dairy Queen, Duracell, GEICO, and Lubrizol.

Why do we cover Warren Buffett stocks?

There are few investors with the results and the reputation Buffett has garnered over the past 50 years, and while investing has changed over the previous half-century, buying good companies with products and services that are known worldwide while paying dividends will always stay in style.

American Express

This American bank holding company and multinational financial services corporation specializes in payment cards.

This stock has been strong and posted solid fourth-quarter results. It pays a 0.90% dividend. American Express Co. (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide.

The company operates through three segments:

Global Consumer Services Group
Global Commercial Services
Global Merchant and Network Services.

Its products and services include:

Payment and financing products
Network services
Accounts payable expense management products and services
Travel and lifestyle services

The company’s products and services also comprise:

Merchant acquisition and processing
Servicing and settlement
Point-of-sale marketing
Information products and services for merchants
Fraud prevention services and the design and operation of customer loyalty programs

Berkshire Hathaway owns 151,610,700 shares, 21.5 % of American Express’s float, and 16.3% of the portfolio.

Apple

It is almost hard to comprehend that the legacy technology giant, with 300 million shares, still makes up a stunning 22.6% of the Berkshire Hathaway portfolio, which holds 2% of Apple’s stock, even after selling tens of millions of shares over the past year. Apple Inc. (NASDAQ: AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.

The company offers:

The iPhone, a line of smartphones
Mac, a line of personal computers
iPad, a line of multi-purpose tablets
Wearables, home, and accessories, including AirPods, Apple TV, Apple Watch, Beats products, and HomePod

Apple also provides AppleCare support and cloud services and operates various platforms, including the App Store, which allows customers to discover and download applications and digital content such as books, music, videos, games, and podcasts.

In addition, the company offers various services, such as:

Apple Arcade, a game subscription service
Apple Fitness+, a personalized fitness service
Apple Music, which gives users a curated listening experience with on-demand radio stations
Apple News+, a subscription news and magazine service
Apple TV+, which offers exclusive original content
Apple Card, a co-branded credit card
Apple Pay, a cashless payment service

Apple investors are paid a modest 0.45% dividend.

J.P. Morgan’s Best 2025 Stock Ideas Include 5 Blue-Chip Dividend Giants

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.