Berkshire Hathaway, helmed by Warren Buffett, features a collection of six high-yield dividend stocks, with Kraft Heinz leading the pack, boasting a dividend yield of 5.23%. The conglomerate holds a substantial stake in this food corporation.
Among its key assets, Chevron ranks as the fifth-largest position in Berkshire’s portfolio, offering a 4.09% dividend yield. Meanwhile, Diageo, a prominent maker of alcoholic beverages based in the UK, yields 3.47%, though it constitutes less than 0.1% of Berkshire’s overall investments.
Both Ally Financial and Citigroup, which are banking institutions, were integrated into Berkshire’s portfolio in early 2022, providing dividend yields of 3.37% and 3.27% respectively. Even though Coca-Cola brings up the rear with the lowest yield on the list at 3.1%, it is noteworthy for being the stock Buffett has held the longest.
The remarkable dividend yield of Chevron
Coca-Cola and Chevron are recognized for their commendable histories of dividend payments. Coca-Cola has consistently raised its dividend for 62 years, while Chevron has maintained this trend for 37 years.
Ally Financial and Citigroup showcase low forward price-to-earnings ratios alongside favorable short-term growth potential. For income investors considering one standout high-yield dividend stock from Buffett’s assortment, Chevron distinctly shines. Buffett’s considerable investment in Chevron serves as a testament to his trust in the company.
With its remarkable dividend yield, a strong record of increasing dividends, and a solid growth trajectory, Chevron’s stocks are reasonably valued against the average in the energy sector. Thus, Chevron emerges as the prime selection among Buffett’s high-yield dividend stocks.
The company strikes a favorable balance between enticing yields and a strong growth forecast.
