Warren Buffett’s Berkshire Hathaway portfolio includes six high-yield dividend stocks. Kraft Heinz tops the list with a 5.23% dividend yield. Berkshire owns a significant portion of this food company.
Chevron, an oil and gas giant, is Berkshire’s fifth-largest holding. It has a 4.09% dividend yield. Diageo, a British alcoholic beverage maker, has a 3.47% dividend yield but makes up less than 0.1% of Berkshire’s total portfolio.
Ally Financial and Citigroup, both banks, were added to Berkshire’s portfolio in early 2022. They have dividend yields of 3.37% and 3.27%, respectively. Coca-Cola, despite having the lowest dividend yield on the list at 3.1%, is notable for being the stock Buffett has owned the longest.
Chevron’s standout dividend yield
Coca-Cola and Chevron have impressive dividend track records. Coca-Cola has increased its dividend for 62 consecutive years, while Chevron has done so for 37 years.
Ally Financial and Citigroup have low forward price-to-earnings ratios and optimistic near-term growth prospects. For income investors looking to choose one high-yield dividend stock from Buffett’s collection, Chevron stands out. Buffett’s significant investment in the company highlights his confidence.
Chevron offers an exceptional dividend yield, a robust history of dividend increases, and promising growth prospects. Its shares trade at a reasonable valuation compared to the energy sector average. In conclusion, Chevron appears to be the best choice among Buffett’s high-yield dividend stocks.
It balances attractive yields with a solid growth outlook.
