A highly renowned name in the investment industry, Warren Buffett is known as one of the best investors of all time. His ability to identify stocks at the right time has paid off for years, and there’s nobody in the industry as good as him. Retail investors can benefit by following the moves of experts like him, but you must do your due diligence before you mimic his moves.
The recent 13F filing of Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) signals significant moves made in the quarter. Based on the filing, we noticed that over 25% of his portfolio rests on three dividend giants. If you’re an income investor, it is worth taking a look at Buffett’s largest dividend stocks. Coca-Cola (NYSE:KO), Chevron Corporation (NYSE: CVX) and Bank of America (NYSE: BAC) make up a large part of the investor’s portfolio. Here’s why they’re worth the investment.
Coca-Cola
Warren Buffett’s favorite stock, Coca-Cola, has been a part of his portfolio for 19 years. The stock hasn’t disappointed and continues to remain one of the best Dividend Aristocrats to own. Coca-Cola forms 9.92% of Buffett’s portfolio. Besides paying regular dividends for decades, the company has raised dividends for 63 consecutive years. It has a yield of 2.90% and is exchanging hands for $70.28. The stock has gained 13% in 2025, and the market continues to remain bullish on the stock.
The stock pays an annual dividend of $2.04 and has a payout ratio of 67.85%. Its 5-year dividend growth is 4.46%. In the third quarter, Coca-Cola reported a revenue of $12.5 billion, up 5% year over year, while the organic revenue jumped 6%. The EPS soared 30% to $0.86, and the operating income grew 59%. Coca-Cola has enough liquidity to invest in the business while keeping the dividends steady.
The company has managed to raise prices to handle the impact of inflation and has remained profitable throughout the years. Coca-Cola is getting a new CEO in 2026 who could steer the company in a new direction. It is an anchor stock with the potential to handle market volatility. Lastly, it is Berkshire’s longest-held stock.
Chevron Corporation
Berkshire Hathaway purchased Chevron Corporation shares in 2020 and continues to add to it. The hedge fund owns 122 million shares, amounting to 7.09% of the portfolio. CVX stock has a dividend yield of 4.57%, making it one of the top dividend stocks to own in 2026.
A dividend giant, Chevron Corporation hasn’t disappointed. It has increased dividends for 38 years and has a payout ratio of 86.01%. The stock pays an annual dividend of $6.84. Exchanging hands for $149.52, the stock has remained flat in 2025. Chevron is a longtime Buffett holding, and I believe he’ll continue adding shares of the oil and gas giant.
Chevron gets exposure to the entire energy value chain, which includes the upstream, midstream, and downstream businesses. Every segment shows different performance throughout the energy cycle, which helps balance the company’s overall performance each year. It expects to keep the annual capital spending between $18 billion and $21 billion for the next few years to maintain the energy operations.
The company has a portfolio of assets that continue to generate cash flow. Chevron is known for one of the strongest balance sheets in the energy sector, and it has enough liquidity to handle the industry downturns. Yes, Chevron will continue to see ups and downs due to the volatility in the sector, but it is also the safest way to invest in the energy industry.
Bank of America
A financial company, Bank of America is a well-renowned name across the world. It forms 10.96% of the total holdings in Berkshire’s portfolio. It has over a million shares of the company. Buffett began purchasing shares of the bank in 2020 and has consistently added to them. The fund also reduced its share by 45% between 2024 and 2025. Despite the sale, it still holds a large chunk of the shares.
Bank of America is one of the largest financial institutions in the world and reported strong quarterly growth. It ended the third quarter with a revenue of $28.1 billion, up 11% year over year, and a net income of $8.5 billion. The bank added 212,000 net new customer checking accounts. It reported an earnings per share of $1.06 in the quarter.
Bank of America has increased dividends for 12 years and has a yield of 2.05%. Exchanging hands for $54.55, the stock is up 23% year-to-date and is nearing the 52-week high of $56.07.
The financial company pays an annual dividend of $1.12 and has a payout ratio of 28.88%. BAC carries low risk and offers steady return. It will benefit from the declining interest rates and rising consumer accounts, thus adding to a higher net income. The bank is set to report fourth-quarter results on January 14, 2026. BAC stock has outperformed the S&P 500 in 2025, and I believe it will continue to do so.
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