Investing
Warren Buffett Has 75% of Berkshire Hathaway in 7 Dividend Stock 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 his massive portfolio of public and private holdings, he remains one of the preeminent investors in the entire world.
One reason for Berkshire Hathaway’s stunning success over the years is that Buffett always tried to stay with stock ideas he understood, which has proven to be a winning hand. In addition, many companies pay solid and reliable dividends in their portfolio.
Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever,” so it’s not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, that just seven top companies make up 75% of the fund’s total holdings.
While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years and likely will in the future.
With a 15-year track record of covering Buffett and Berkshire Hathaway at 24/7 Wall St., it is important to keep our readers updated on the top news from the financial powerhouse. Berkshire Hathaway had an excellent second quarter and looks poised to post tremendous results for 2024.
This stock has been strong in 2024 and pays a 1.07% 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, and 12.9% of the portfolio.
It’s almost hard to comprehend that the legacy technology giant still makes up a stunning 28% of the Berkshire Hathaway portfolio with 400 million shares and holds nearly 2.6% of Apple’s stock even after selling over 500 million shares over the last 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, video, games, and podcasts.
In addition, the company offers various services, such as:
Apple Investors are paid a modest 0.46% dividend.
The company posted solid second-quarter results and pays a 2.66% dividend. Bank of America Corp. (NYSE: BAC) is a ubiquitous presence in the United States. Through its subsidiaries, it provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
It operates in four segments:
The Consumer Banking segment offers:
The GWIM segment provides investment management, brokerage, banking, trust and retirement products and services, wealth management solutions, customized solutions, and specialty asset management services.
The Global Banking segment offers:
The Global Markets segment provides market-making, financing, securities clearing, settlement, custody services, securities and derivative products, and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products.
Warren Buffett owns 858,180,506 bank shares after selling almost 200 million shares this year, 11.1% of the float and 11% of Berkshire Hathaway’s portfolio.
This integrated giant is a safer option for investors looking to position themselves in the energy sector. It pays a rich 4.59% dividend and looks cheap after the recent oil sell-off. 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 almost a year ago 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 Warren Buffet holding as he owns a massive 400 million shares, 9.3% of the float and 9.3% of the Berkshire Hathaway 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, it is 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 is also important to remember that the company owns almost 20% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver big numbers.
Investors are paid a very dependable 2.70% dividend.
Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 4.49% dividend. Kraft Heinz Co. (NYSE: KHC) was formed via the merger of H.J. Heinz and Kraft Foods.
The company is a leading global food company with estimated annual revenues of $25 billion from well-known brands such as Kraft, Heinz, Oscar Meyer, and Maxwell House.
Kraft Heinz is North America’s third-largest food and beverage manufacturer. It derives 76% of its revenues from that market and 24% from International.
The Company’s additional brands include:
Over the past two years, Berkshire Hathaway has been buying the shares heavily. Now, there are a massive 255,281,524 shares, which account for 4.3% of the portfolio and pay a decent 1.72% dividend. Occidental Petroleum Corp. (NYSE: OXY) is engaged in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments.
The Oil and Gas segment explores, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.
Its Chemical segment manufactures and markets basic chemicals, including:
The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment trades around its assets, including transportation and storage capacity, and invests in entities.
Buffett has loaded the boat on Occidental Petroleum, which pays Berkshire Hathaway a reported annual dividend of $903,847,747. This includes $224,647,747 from the common stock and $679,200,000 from a $10 billion position of Occidental preferred stock, which yields 8%. In addition, he owns warrants to buy an additional 83.9 million shares for $5 billion, which translates to $59.62 per share.
In June of this year, Buffett bought the company’s shares for nine straight days, upping his stake to an astounding 27.3%. It was reported that from June 5th on, he acquired an additional 7.3 million company shares at prices around the $60 level for the next nine trading days. Occidental Petroleum is Berkshire Hathaway’s sixth-largest holding, and it is by far the largest institutional investor in the company.
Buffet’s penchant for only owning the stock of companies he understands inside and out makes sense now for growth and income investors worried about the potential for a steep market decline. While these top companies could sell off in a significant correction, they will hold on far better than most, and many of these top companies (except Apple) are offering the best entry points and dividends in some time.
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