11 Best Dividend Stocks To Buy According To Warren Buffett

In this article, we discuss the 11 best dividend stocks to buy according to Warren Buffett. You can skip our in-depth analysis of Buffett's hedge funds and investment philosophy and read straight ahead to the 5 best dividend stocks to buy according to Warren Buffett.
Warren Buffett is an American businessman, investor, and CEO of Berkshire Hathaway. He is considered the most successful investor of all time. Buffett is the sixth richest man in the world with a net worth of $ 103.1 billion as of October 2021.
Notable dividend stocks in his portfolio include Chevron Corporation (NYSE: CVX), Johnson & Johnson (NYSE: JNJ), The Coca-Cola Company (NYSE: KO), Bristol-Myers Squibb Company (NYSE: BMY), and AbbVie Inc . (NYSE: ABBV).
Our methodology:
Let's analyze our list of the best dividend stocks to buy, according to Warren Buffett. We have selected stocks with the highest dividend yields in the Berkshire Hathaway 13F portfolio from the second quarter of 2021.
The 11 Best Dividend Stocks to Buy According to Warren Buffett
Warren Buffett
Why is it important to pay attention to hedge fund stock picking? Insider Monkey's research identified a select group of hedge fund holdings ahead of time that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. 100.1% for the spy. Our stock selection outperformed the market by more than 86 percentage points (see details here). Because of this, we believe that hedge fund sentiment is an extremely useful indicator that investors should look out for. You can subscribe to our free newsletter on our homepage to get our stories in your inbox.
The 11 Best Dividend Stocks to Buy According to Warren Buffett
11. Johnson & Johnson (NYSE: JNJ)
Berkshire Hathaway Equity Stake: $ 53,886,000
Percent of Berkshire Hathaway's 13F portfolio: 0.01%
Number of hedge fund holders: 88
Dividend yield: 2.63%
Johnson & Johnson (NYSE: JNJ) ranks eleventh on our list of the best dividend stocks to buy, according to Warren Buffett. It is a holding company engaged in the research and development of pharmaceutical products. The company is also active in consumer retail and medical products.
In the second quarter of 2021, Berkshire Hathaway made no changes to its stake in Johnson & Johnson (NYSE: JNJ) and owns 327,100 shares in the company valued at $ 53.8 million.
Of the 873 hedge funds tracked by Insider Monkey, 88 hedge funds have positions in Johnson & Johnson (NYSE: JNJ) in the second quarter of 2021, up from 81 in the previous quarter. These stakes are valued at over $ 7 billion. Fundsmith LLP is the company's largest shareholder with shares valued at $ 1.1 billion.
Like Chevron Corporation (NYSE: CVX), The Coca-Cola Company (NYSE: KO), Bristol-Myers Squibb Company (NYSE: BMY), and AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ) is one of the most notable stocks in 2021.
Distillate Capital mentioned Johnson & Johnson (NYSE: JNJ) in its Q2 2021 investor letter. Here's what the company had to say:
“The largest new additions to rebalancing, Johnson & Johnson, were incrementally about 50 and 40 basis points. J&J underperformed in the quarter while normalized free cash flows remained stable, so the position size has been padded to reflect stable cash flows. "
10. US Bancorp (NYSE: USB)
Berkshire Hathaway's stake value: $ 7,342,802,000
Percent of Berkshire Hathaway's 13F portfolio: 2.5%
Number of hedge fund holders: 41
Dividend yield: 2.97%
U.S. Bancorp (NYSE: USB) is an American bank holding company and the parent company of the U.S. Bank National Association. According to Warren Buffett, the company ranks tenth on our list of the best dividend stocks to buy.
In the second quarter of 2021, Berkshire Hathaway owns approximately 129 million shares of U.S. Bancorp (NYSE: USB) valued at $ 7.34 billion. The company accounts for 2.5% of the hedge fund's 13F portfolio. Recently, U.S. Bancorp (NYSE: USB) launched its cryptocurrency custody services for its global institutional investment managers with private funds in the United States. The company has increased its dividend by 44.8% over the past three years.
9. The Coca-Cola Company (NYSE: KO)
Berkshire Hathaway's stake value: $ 21,644,001,000
Percent of Berkshire Hathaway's 13F portfolio: 7.38%
Number of hedge fund holders: 62
Dividend yield: 3.11%
In the second quarter of 2021, Berkshire Hathaway did not change its stake in The Coca-Cola Company (NYSE: KO) and owns 400 million shares of the company valued at over $ 21.6 billion. The company represents 7.38% of the hedge fund's 13F portfolio.
Of the 873 hedge funds tracked by Insider Monkey, 62 hedge funds held positions in The Coca-Cola Company (NYSE: KO) in the second quarter of 2021, up from 61 in the previous quarter. The total value of these shares is $ 24.9 billion.
Like Chevron Corporation (NYSE: CVX), Bristol-Myers Squibb Company (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ), The Coca-Cola Company (NYSE: KO) is starting Q2 one of the most notable dividend stocks in Buffett's portfolio.
8. Merck & Co., Inc. (NYSE: MRK)
Berkshire Hathaway's stake value: $ 712,155,000
Percent of Berkshire Hathaway's 13F portfolio: 0.24%
Number of hedge fund holders: 79
Dividend yield: 3.19%
Merck & Co., Inc. (NYSE: MRK) is an American pharmaceutical company that trades in biologics, medicines, vaccines, and other consumer products. The company is ranked eighth on our list of the best dividend stocks to buy, according to Warren Buffett.
On October 1, Citigroup raised its price target for Merck & Co., Inc. (NYSE: MRK) to $ 105, with the stock still being rated "Buy". Since the start of the year, the stock has returned 4.85% for shareholders, while the 12-month return was 5.48%.
In the second quarter of 2021, 79 hedge funds tracked by Insider Monkey had positions in Merck & Co., Inc. (NYSE: MRK), just as they did in the previous quarter. The total value of these shares is $ 5.2 billion. Kahn Brothers is the company's largest shareholder, with a share value of $ 55.7 billion.
Such as Chevron Corporation (NYSE: CVX), Bristol-Myers Squibb Company (NYSE: BMY), AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ) and The Coca-Cola Company (NYSE: KO), Merck & Co., Inc. (NYSE: MRK) is also gaining investor attention as a dividend stock.
Artisan Partners mentioned Merck & Co., Inc. (NYSE: MRK) in their investor letter for the first quarter of 2021. Here's what the company had to say:
“In the first quarter, we opened a position at Merck, a provider of healthcare solutions including prescription drugs, vaccines, biological therapies, animal health and consumer care products. We bought Merck when the stock came under pressure, in part on concerns that the newly formed government of Biden could introduce regulatory changes and lower drug costs in the pharmaceutical industry. Recent but anticipated changes in Merck's leadership team also weighed on the stock, as did concerns about the company's heavy reliance on the immunotherapy treatment Keytruda. Notably, despite some solid and extensive new product opportunities, Merck isn't getting much credit from investors for the 60+ programs it has in clinical development. In addition, the company's strong balance sheet and robust free cash flow offer multiple options for future partnerships and acquisitions. While Merck is in a transition phase, we believe the fundamentals of the company are strong and believe that changes in management should be a catalyst for improvement. "
7. Bristol-Myers Squibb Company (NYSE: BMY)
Berkshire Hathaway's stake value: $ 1,756,983,000
Percent of Berkshire Hathaway's 13F portfolio: 0.59%
Number of hedge fund holders: 73
Dividend yield: 3.35%
Bristol-Myers Squibb Company (NYSE: BMY) ranks seventh on our list of the best dividend stocks to buy, according to Warren Buffet. It is an American multinational pharmaceutical company specializing in the development and commercialization of drugs for patients with serious illnesses.
As of the second quarter of 2021, Berkshire Hathaway owns 26.2 million shares of Bristol-Myers Squibb Company (NYSE: BMY) valued at $ 1.75 billion. The company represents 0.59% of the hedge fund's 13F portfolio. Morgan Stanley recently raised its price target on Bristol-Myers Squibb Company (NYSE: BMY) to $ 71 while maintaining its equilibrium rating. On September 9, the company's board of directors announced its quarterly dividend of $ 0.49 per share, which offers an annualized return of 3.35%.
Like Chevron Corporation (NYSE: CVX), AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and The Coca-Cola Company (NYSE: KO), analysts and investors look to Bristol-Myers Squibb Company (NYSE : BMY) in 2021.
6. Organon & Co. (NYSE: OGN)
Berkshire Hathaway equity stake: $ 46,918,000
Percent of Berkshire Hathaway's 13F portfolio: 0.01%
Number of hedge fund holders: 44
Dividend yield: 3.43%
Organon & Co. (NYSE: OGN) is a global pharmaceutical company that develops and supplies innovative health solutions, medicines, and related products in a variety of therapeutic areas. According to Warren Buffett, the company ranks sixth on our list of the best dividend stocks to buy.
Organon & Co. (NYSE: OGN) is one of Berkshire Hathaway's most recent acquisitions as the fund began building its position with the company in the second quarter of 2021. The fund owns over 1.5 million shares in the company valued at $ 46.9 million.
Of the 873 hedge funds tracked by Insider Monkey, 44 hedge funds have positions in Organon & Co. (NYSE: OGN) valued at $ 427.8 million in the second quarter. There were no hedge fund positions in the company in the previous quarter.
Click here to read on and see the 5 best dividend stocks to buy, according to Warren Buffett.
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Disclosure. None. The 11 Best Dividend Stocks to Buy According to Warren Buffett were originally published on Insider Monkey.
In this article:
JNJ
+ 0.20%
KO
+ 0.18%
BMY
-0.36%
ABBV
+ 0.35%
MRK
-0.02%
CVX
+0.95%
USB-PQ
+ 0.21%

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