Special Report
7 Warren Buffett Dividend Stocks That Every Total Return Investor Should Own
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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. 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 holdings, looking for stocks that total return investors should buy and own forever. 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.
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.
7 Warren Buffett stocks fit the bill perfectly, and all are rated Buy at major Wall Street firms.
This stock has backed up recently, offers the best entry point since late last year, and pays a 1.51% dividend. American Express Company (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide.
The company operates through three segments:
American Express products and services include payment and financing, network services, accounts payable expense management products and services, and 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.
This is one of Warren Buffett’s top positions, making up almost 9% of his portfolio. Bank of America Corporation (NYSE: BAC) is a ubiquitous presence in the United States, providing various banking and financial products and services for:
Bank of America has expanded into several new US markets, with scale globally positioning them ideally to benefit from accelerating loan growth over the next two years.
The scale allows the bank to substantially increase investment over the next few years without notably jeopardizing returns, driving further market share gains. Investors are paid a dependable 3.25% dividend.
This company is a top Warren Buffet holding as he owns a massive 400 million shares, offering safety and paying a solid 3.22% 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
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.
Even in bad times, everybody has to eat, and Warren Buffett holds a massive position in Berkshire Hathaway, with 325 million shares that pay a hefty 4.73% dividend. The Kraft Heinz Company (NYSE: KHC) was formed eight 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. The company 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
This grocery chain giant is a solid idea as the company finishes its purchase of Albertsons and pays shareholders a dependable 2.72% dividend. The Kroger Company (NYSE: KR) operates as a retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses.
Its combination of food and drug stores offer
The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items.
Kroger also manufactures and processes food products in its supermarkets and online and sells fuel through 1,613 fuel centers.
This company remains a leading healthcare stock for conservative investors and pays a 2.86% dividend. Merck & Co. Inc. (NYSE: MRK) is a global healthcare company.
Merck operates through two segments:
The Pharmaceutical segment offers human health pharmaceutical products in oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines.
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves drug wholesalers, retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians, physician distributors, veterinarians, and animal producers.
The company collaborates with AstraZeneca PLC (NYSE: AZN), Bayer AG; Eisai Co., Ltd., Ridgeback Biotherapeutics; and Gilead Sciences, Inc. (NASDAQ: GILD) to jointly develop and commercialize long-acting treatments in HIV.
Over the last two years, Berkshire Hathaway has been buying the shares in a big way, paying a 1.19% dividend. Occidental Petroleum (NYSE: OXY), together with its subsidiaries, is engaged in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America.
Occidental Petroleum operates through three segments:
The company’s Oil and Gas segment explores, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.
The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene.
The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment trades around its transportation and storage capacity assets and invests in entities.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
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