If any investor has stood the test of time, it is 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 Inc. (NYSE: BRK-B) shareholders meeting draws thousands of loyal fans who are investors. They were stunned at this year’s meeting when Buffett announced that he would be stepping down as CEO of the investment giant at the end of the year. While he will remain board chair and continue to have a voice in the day-to-day operations, his pre-announced successor, Greg Abel, will assume the chief executive position at the end of the year.
Buffett remains one of the world’s most prominent investors, renowned for his long-term buy-and-hold strategies and extensive portfolio of public and private holdings. With interest rates poised to decline, it makes sense to consider adding Buffett’s dividend-paying stocks, which are expected to rally as bond yields fall. We screened the current portfolio and identified four stocks that investors can buy now and hold for the long term. All are rated Buy at top Wall Street firms, and all are excellent additions to growth and income portfolios.
Why do we cover Warren Buffett’s stocks?
There are few investors with the results and reputation that Buffett has garnered over the past 50 years. While investing has evolved over the past half-century, buying good companies with products and services recognized worldwide, while paying dividends, will always remain a timeless approach.
Bank of America
While Buffett has trimmed his position over the past two years, this quality financial giant is a solid long-term holding. Bank of America Corp. (NYSE: BAC | BAC Price Prediction) is a bank holding company and a financial holding company.
Its segments include:
- Consumer Banking
- Global Wealth & Investment Management (GWIM)
- Global Banking
- Global Markets
Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.
The GWIM comprises two businesses: Merrill Wealth Management, which offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products.
Bank of America Private Bank provides comprehensive wealth management solutions.
The Global Banking segment offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.
The Global Markets segment offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets.
Oppenheimer has a Buy rating and a $55 target price.
Chevron
This American multinational energy company predominantly specializes in oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial dividend, which was recently raised by 5%. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through two segments.
The Upstream segment is involved in the following:
- Exploration, development, production, and transportation of crude oil and natural gas
- Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
- Transportation of crude oil through pipelines, and transportation, storage
- Marketing of natural gas, as well as operating 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 refined products by pipeline, marine vessel, motor equipment, and rail car
- 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.
Chevron announced in late 2023 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. The Federal Trade Commission approved the deal last October, and it is expected to close this summer.
Wells Fargo has an Overweight rating and a $178 target price.
Coca-Cola
Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. It remains a top long-time holding of Buffett, who owns a massive 400 million shares. The stock is up a solid 11% in 2025. Coca-Cola 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
- Coca-Cola Light
- Coca-Cola Zero Sugar
- Caffeine-free Diet Coke
- Cherry Coke
- Fanta Orange
- Fanta Zero Orange
- Fanta Zero Sugar
- Fanta Apple
- Sprite
- Sprite Zero Sugar
- Simply Orange
- Simply Apple
- Simply Grapefruit
- Fresca
- Schweppes
- Dasani
- Fuze Tea
- Glacéau Smartwater
- Glacéau Vitaminwater
- Gold Peak
- Ice Dew
- Powerade
- Topo Chico
- Minute Maid
Globally, it is the top 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 over 1.9 billion servings per day. It is also important to remember that the company owns 16% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver strong financial results.
UBS has a Buy rating with a target price of $84.
Kroger
This American retail company operates supermarkets, combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses throughout the United States. Kroger Co. (NYSE: KR) is a consistently solid and conservative investment.
Its combination of food and drug stores offers:
- Natural food and organic sections
- Pharmacies
- General Merchandise
- Pet centers
- Fresh seafood and organic produce
Multi-department stores offer:
- Apparel
- Home fashion and furnishings
- Outdoor living
- Electronics
- Automotive products
- Toys
The company’s marketplace stores offer:
- Full-service grocery, pharmacy, health, and beauty care
- Perishable goods, as well as general merchandise, including apparel, home goods, and toys
- Price-impact warehouse stores sell groceries, health and beauty care products, meat, dairy, baked goods, and fresh produce
The company also manufactures and processes food products in its supermarkets and online, and it sells fuel through 1,613 fuel centers.
Jefferies has a Buy rating with an $83 price objective.
Investors Can Generate Huge Passive Income With 7 Dividend Kings
Top Gaining Stocks
Top Losing Stocks
