3 Warren Buffett Stocks Set to Explode Higher

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Joel Baglole

Sat, Sep 30, 2023, 7:00 AM 4 min read

T-Mobile (TMUS)

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Warren Buffett is a notorious dividend collector.

The Oracle of Omaha must have been thrilled when wireless internet provider T-Mobile (NASDAQ:TMUS) recently declared its first ever dividend payment. The company promises to pay a dividend of 65 cents per share to stockholders on December 15.

Buffett currently owns 5.24 million shares of TMUS stock worth more than $735 million. Based on his current holdings, he will receive $3.40 million when T-Mobile pays the December dividend. If the internet company maintains its dividend at 65 cents a share each quarter, that would total $2.60 per share for the year.

Therefore, Buffett will earn $13.63 million from shareholder payouts. Not bad for one of Buffett’s newer investments. TMUS stock is up 3% over the last 12 months and has gained 100% over five years.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

Source: Tada Images / Shutterstock.com

The antitrust lawsuit filed against Amazon (NASDAQ:AMZN) by the U.S. Federal Trade Commission (FTC) and 17 state attorneys general accuse Amazon of monopolistic behavior. Not a good look, to be sure.

However, the antitrust action has been long anticipated and will likely take years to resolve. It’s more of a strong breeze than a headwind for the e-commerce company. And, while the antitrust action plays out, Amazon is making lots of right decisions that should help the company and its stock move forward.

First, Amazon is adding advertisements to its Prime Video streaming service and charging all users an additional fee of $2.99 per month to avoid seeing the ads. The addition of both the ads and optional skip fee should help to make Amazon’s streaming unit more profitable, bringing extra revenue. Next, Amazon announced plans to invest $4 billion in artificial intelligence (AI) company Anthropic, which is a rival to ChatGPT creator OpenAI. This could be a major catalyst for the stock.

AMZN stock has gained 46% so far in 2023. Warren Buffett currently owns 10.55 million shares of Amazon worth $1.31 billion.

United Parcel Service (UPS)

Close up of UPS logo printed on a delivery truck.

Source: Sundry Photography / Shutterstock

A catalyst for logistics and delivery giant United Parcel Service (NYSE:UPS) comes in the form of labor peace.

The Teamsters union that represents 340,000 workers at UPS recently announced that its members voted in favor of a new contract agreement. This essentially ends the risk of a major strike that threatened to disrupt millions of package deliveries, causing supply chain and inventory headaches for large and small businesses.

In fact, the new five-year collective agreement with the Teamsters was not cheap for UPS. The company has said that at the end of the new contract, the average UPS full-time delivery driver will earn $170,000 a year in pay and benefits.

However, the deal is a small price to pay compared to the damage that could have been wreaked had a strike occurred at UPS. The consulting firm Anderson Economic Group estimated that a 10-day strike at UPS would have cost the U.S. economy more than $7 billion.

UPS stock is one of Buffett’s smaller positions as he holds just 59,400 shares of the company worth $9.10 million. UPS stock has declined 12% year to date (YTD) but up 32% over five years.

On the date of publication, Joel Baglole held long positions in AAPL and BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.