Investing
Dow Jones Industrials at All-Time Highs and Warren Buffett Owns 5 of the Legacy Dividend Giants
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24/7 Wall St. Insights
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 massive portfolio of public and private holdings, he remains one of the world’s preeminent investors. With interest rates poised to move lower, adding Buffett dividend-paying stocks that will rally as bond yields drop makes sense.
Recently, it was announced that Berkshire Hathaway had surpassed the $1 trillion mark in valuation. This is a stunning feat, considering that all other companies with similar valuations are mega-cap technology giants that dominate their specific spheres. Also, remember that the $1 trillion valuation is strictly for the publicly traded stocks in the portfolio and doesn’t include any private holdings like Geico, battery maker Duracell, or family favorite Dairy Queen.
The Berkshire Hathaway move to $1 trillion was matched by the venerable Dow Jones industrials hitting all-time highs. We decided to screen Buffet’s public holdings and found that five of the stocks, which are among his largest holdings, are also members of the legacy index. All pay dividends and all are rated Buy by top Wall Street firms.
With a 15-year track record of covering Buffett and Berkshire Hathaway at 24/7 Wall St., we like to keep our readers updated on the top news from the financial powerhouse. It should be noted that Berkshire Hathaway’s overall performance has surpassed the S&P 500 this year.
This stock has been strong and blew out second-quarter results. It pays a 1.16% dividend. American Express Co. (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide.
The company operates through three segments:
Its products and services include:
The company’s products and services also comprise:
Berkshire Hathaway owns 151,610,700 shares, 21.3 % of American Express’s float
It’s almost hard to comprehend that the legacy technology giant still makes up 29% of the Berkshire Hathaway portfolio despite selling over 500 million shares this year. Apple Inc. (NASDAQ: AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
The company offers:
Apple also provides AppleCare support and cloud services and operates various platforms, including the App Store, which allows customers to discover and download applications and digital content such as books, music, videos, games, and podcasts.
In addition, the company offers various services, such as:
Apple Investors are paid a modest 0.44% dividend.
This integrated giant is a safer way for investors looking to position themselves in the energy sector. It pays a rich 4.42% dividend. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
The Upstream segment is involved in the following:
The Downstream segment engages in:
Chevron announced last fall that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.
Berkshire Hathaway owns 6.5% of Chevron’s outstanding stock with 118,610,534 shares, and the energy giant makes up 5.5% of the portfolio.
This company remains a top Buffet holding as he owns a massive 400 million shares, 9.3% of the float and 9% of the portfolio. Coca-Cola Co. (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:
Globally, they are the number one provider of sparkling beverages, ready-to-drink coffees, 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 almost 17% of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers.
Investors are paid a very dependable 2.70% dividend.
The credit card giant continues delivering solid results and is ready to break to new 52-week highs. Visa Inc. (NYSE: V) is a payment technology company in the United States and internationally.
The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.
It also offers:
The company also provides acceptance solutions, including Cybersource, which provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as:
It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names.
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