Investing

5 Warren Buffett Stocks That Could Help you Retire Rich

Lee Jackson

Published: November 19, 2023 9:10 am

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.

At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends. For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.

We screened Warren Buffett’s Berkshire Hathaway list for five highest-yielding stocks with ‘Strong Buy’ ratings. Buying these stocks and reinvesting the dividends is a sure path to a substantial total return. Over the years, consistent real return gains can help investors build wealth and retire rich.

Chevron

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This integrated giant is a safer way for investors looking to get positioned in the energy sector and pays a rich 4.26% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.

The company operates in two segments: Upstream and Downstream.

• The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of oil petroleum through pipelines; and transport, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant.

• The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing renewable fuels; transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

This is one of the three energy holdings in Berkshire Hathaway, which holds 123 million shares of the integrated giant.

Citigroup

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This top bank has rallied nicely off the lows, and Warren Buffett bought a massive $2.5 billion worth of stock 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

• Consumer banking and credit
• Corporate and investment banking
• Securities brokerage
• Transaction services
• Wealth management services

Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East, and Africa.

Trading at a cheap 7.1 times estimated 2023 earnings; this company looks very reasonable in a volatile stock market and a dramatically lagged sector. Plus, investors are paid a massive 5.01% 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 3.25% 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

Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

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.

Kraft Heinz

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Even in bad times, this company performs well, and shareholders are paid a very rich 4.86% 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
• Plasmon
• Quero
• Weight Watchers
• Smart Ones
• Velveeta

Mondelez

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This is another consumer sector giant that makes good sense for conservative accounts and pays a 2.47% dividend. Mondelez International, Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide.

The company offers biscuits, including cookies, crackers, and salted snacks; chocolates, gums, and candies; powdered beverages and coffee; and cheese and grocery products.

The company’s primary brand portfolio includes:

• LU
• Nabisco and Oreo biscuits
• Cadbury
• Cadbury Dairy Milk and Milka chocolates
• Trident gum
• Jacobs Kaffee and Tang powdered beverages

Mondelez International, Inc. sells its products to:

• Supermarket chains
• Wholesalers
• Supercenters
• Club stores
• Mass merchandisers
• Distributors
• Convenience stores
• Gasoline stations
• Drug stores
• Value stores