As a Concerned Warren Buffett Exits, His 4 Safest Dividend Stocks Are 2026 Gems

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By Lee Jackson Published

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  • Energy executive and Buffett’s hand-picked successor is 62-year-old Greg Abel.

  • Mr. Abel has been Vice Chairman of Berkshire Hathaway since 2018.

  • Warren Buffett will remain as the chairman of the board at Berkshire Hathaway.

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As a Concerned Warren Buffett Exits, His 4 Safest Dividend Stocks Are 2026 Gems

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If any investor has stood the test of time, it is Warren Buffett. For years, the so-called Oracle of Omaha has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway Inc. (NYSE: BRK-B | BRK-B Price Prediction) shareholders meeting draws thousands of loyal investors. This past year’s meeting ended with a thud as Buffett announced he would step down as CEO at the end of 2025, and he has officially done so. He assured the public he would still be going into the office, and you can bet his advice on any big portfolio ideas will be heeded and appreciated.

In 2025, Berkshire Hathaway continued its streak as a net seller of equities. Through the first nine months of 2025, Buffett and his team sold over $24 billion worth of stock. This follows an even more aggressive selling spree in 2024, during which Berkshire unloaded $143 billion in stock. As a result of these massive sales, Berkshire’s cash pile has reached an unprecedented $354 billion as of the end of the third quarter of 2025.

While Buffett has been a net seller for 12 straight quarters, he has made some targeted purchases this year, most notably a new $4.3 billion investment in Alphabet Inc. (NASDAQ: GOOGL). One thing is for sure: he would not have accrued a mountain of cash because he feels 2026 and beyond will all be smooth sailing. As he has said himself, once every decade or so, some very dark clouds can hit the economy and the stock market, and investors have to be ready for such times.

We screened Berkshire Hathaway’s end-of-year holdings to identify the safest dividend stocks. Four look like total return home runs for 2026 and beyond. All are rated Buy at the top Wall Street firms we cover here at 24/7 Wall St.

Why do we cover Warren Buffett’s stocks?

Warren Buffett

Chip Somodevilla / Getty Images

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 and paying dividends will always remain a timeless approach.

Chevron

This American multinational energy company is primarily focused on oil and gas, and it is a safer option for investors looking to position themselves in the energy sector. Chevron Corp. (NYSE: CVX) pays a substantial 4.58% dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide and offers investors excellent credit ratings (AA), diversified operations, strong margins, and a long history of paying and raising dividends yearly. The company operates in 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 had entered into a definitive agreement with Hess to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion. The Federal Trade Commission approved the deal, and it closed last July, providing a solid boost to Chevron’s third-quarter earnings, which exceeded analysts’ expectations. The company reported earnings of $1.85 per share, which exceeded the consensus estimate of $1.73, and revenue of $49.73 billion, surpassing the forecast of $49.50 billion.

Mizuho has an Outperform rating with a huge $206 target price.

Coca-Cola

This American multinational corporation, founded in 1892, remains a top long-time holding of Buffett, who owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) pays a dependable 2.86% dividend, and it 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, 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. And note that the company owns 16.7% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver big numbers.

Bank of America has a Buy rating with an $80 target price.

Kraft Heinz

Kraft Heinz Co. (NYSE: KHC) is North America’s third-largest food and beverage company and fifth-largest globally. Even in difficult times, everybody needs to eat, and this company consistently benefits while paying a substantial 6.63% dividend. It was formed via the merger of H.J. Heinz and Kraft Foods, and it manufactures and markets food and beverage products worldwide through its eight consumer-driven product platforms:

  • Taste Elevation
  • Easy Ready Meals
  • Hydration
  • Meats
  • Cheeses
  • Substantial Snacking
  • Desserts
  • Coffee and other grocery products

The company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, West and East Emerging Markets and Asia Emerging Markets, are combined and reported as Emerging Markets.

Kraft Heinz brands include:

  • Kraft
  • Oscar Mayer
  • Heinz
  • Philadelphia
  • Lunchables
  • Velveeta
  • Ore-Ida
  • Capri Sun
  • Maxwell House
  • Kool-Aid
  • Jell-O
  • Golden Circle
  • Wattie’s
  • Plasmon
  • ABC
  • Master
  • Quero
  • Pudliszki

The company’s products are sold through its sales organizations and independent brokers, agents, and distributors.

Kraft Heinz announced in September 2025 that it is splitting into two independent, publicly traded companies: Global Taste Elevation (sauces, spreads like Heinz, Philadelphia) and North American Grocery (staples like Oscar Mayer, Kraft Singles, Lunchables) to unlock value and drive growth, with the separation expected in the second half of 2026. Many on Wall Street believe this could be a significant positive for shareholders, citing past spin-offs at General Electric and AT&T.

DZ Bank has a Strong Buy rating with a $31 target price.

Kroger

This grocery chain giant is a consistently solid and conservative investment with a 2.15% dividend. Kroger Co. (NYSE: KR) is an American retail company that operates supermarkets and multi-department stores throughout the United States. It operates combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses.

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; it sells fuel through 1,613 fuel centers.

Evercore ISI has an Outperform rating with a $77 target price.

Warren Buffett Departs With 64% of Berkshire Hathaway in Five Stocks to Hold Forever.

 

Photo of Lee Jackson
About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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