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.
The recent rally has been a welcome relief for investors after three months of selling, but there are some dark clouds on the economic horizon. Massive layoffs, manufacturing slowing, inflation while dropping is still way above the Feds target, geo-political issues with China, the ongoing Russia-Ukraine war, and the new conflict in the Middle East are all concerns investors need to be very wary of.
We screened Warren Buffett’s Berkshire Hathaway portfolio, looking for companies with the most significant dividends that appear poised to not only thrive in the current higher-for-longer interest rate environment but could benefit.
Citigroup
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This is a top bank that has rallied nicely off the lows, and Warren Buffett bought a massive $2.5 billion worth of stock back in the summer of 2022. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.
Citigroup offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).
Trading at a still very cheap 7.5 times estimated 2023 earnings. This company looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged. Plus, investors are paid a massive 5.03% dividend.
The Coca-Cola Company
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This company remains a top Warren Buffet holding as he owns a massive 400 million shares, and investors are paid a very dependable 3.02% 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:
- Diet Coke
- Fanta
- Sprite
- Coca-Cola Zero
- Vitaminwater
- Powerade
- Minute Maid
- Simply
- Georgia
- Del Valle
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.
Diageo plc
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This company is one of the largest producers of alcoholic beverages in the world and also pays a solid 2.5% dividend. Diageo plc (NYSE: DEO) produces, markets, and sells alcoholic beverages worldwide. It offers scotch whiskey, gin, vodka, rum, beer and spirits, Irish cream liqueurs, wine, Raki, tequila, Canadian and American whiskey, Cachaça, and brandy, as well as adult beverages and ready-to-drink products.
The company’s premium brands comprise:
- Johnnie Walker,
- Smirnoff,
- Captain Morgan,
- Baileys,
- Tanqueray
- Guinness.
Diageo’s reserve brands include:
- Johnnie Walker Blue Label,
- Johnnie Walker Green Label
- Johnnie Walker Gold Label 18-year-old
- Johnnie Walker Gold Label Reserve
- Johnnie Walker Platinum Label 18-year-old
- John Walker & Sons Collection
- Johnnie Walker The Gold Route
- Johnnie Walker The Royal Route
Johnnie Walker super premium brands: The Singleton, Cardhu, Talisker, Lagavulin, and other malt brands.
Kraft Heinz
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Even in bad times, this company performs well, and shareholders are paid a very rich 4.77% dividend. The Kraft Heinz Company (NYSE: KHC) was formed 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.
Kraft Heinz is the third largest food and beverage manufacturer in North America and derives 76% of revenues from that market. And 24% from International.
The Company’s additional brands include:
- ABC
- Capri Sun
- Classico
- Jell-O
- Kool-Aid
- Lunchables
- Ore-Ida
- Oscar Mayer
- Philadelphia
- Planters
- Weight Watchers
- Smart Ones
- Velveeta.
Kroger
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This grocery chain giant is still pursuing the closing of the purchase of the Albertson’s chain, which will cement their status as the largest grocery store operator. 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. Kroger shareholders receive a dependable 2.56% dividend.
The company’s combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce, and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.
Kroger’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. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.
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