15 Best Dividend Stocks to Buy According to Warren Buffett

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In this article, we will take a detailed look at the 15 Best Dividend Stocks to Buy According to Warren Buffett. For a quick overview of such stocks, read our article 5 Best Dividend Stocks to Buy According to Warren Buffett.

Billionaire Warren Buffett has for years enjoyed steady and growing dividends from some of his top investments. While dividend payments have never been the first priority of the Oracle of Omaha while looking for new investments, he does give them a lot of importance and almost always mentions his portfolio companies with growing dividends in his annual letters. In his latest annual letter to Berkshire shareholders, Buffett talked about Coca-Cola Co (NYSE:KO) and American Express Company (NYSE:AXP), in which Berkshire owns $24 billion and $28 billion worth of stakes, respectively.

"During 2023, we did not buy or sell a share of either AMEX or Coke – extending our own Rip Van Winkle slumber that has now lasted well over two decades. Both companies again rewarded our inaction last year by increasing their earnings and dividends. Indeed, our share of AMEX earnings in 2023 considerably exceeded the $1.3 billion cost of our long-ago purchase. Both AMEX and Coke will almost certainly increase their dividends in 2024 – about 16% in the case of AMEX – and we will most certainly leave our holdings untouched throughout the year. Could I create a better worldwide business than these two enjoy? As Bertie will tell you: “No way.”

Buffett loves it when he does not have to touch his stakes and let the investments do all the work. He believes his investments are rewarded when the companies he has invested in increase dividends and focus on shareholder returns.

Best Dividend Stocks to Buy According to Warren Buffett
Best Dividend Stocks to Buy According to Warren Buffett

Methodology

But Coca Cola and American Express aren’t the only two dividend-paying stocks in Buffett's portfolio. In this article we scanned Berkshire's Q4 portfolio and picked 15 stocks that pay dividends. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).