As the second half of 2024 begins to take shape, investors continue to scout for reliable dividend stocks to bolster their portfolios towards the end of the year.
Among the top choices are stocks long endorsed by legendary investor and Berkshire Hathaway (NYSE: BRK.A) founder Warren Buffett. Buffett is renowned for his disciplined and value-oriented investment strategy, which includes several dividend stocks that consistently deliver rewards.
For investors seeking to emulate Buffett’s portfolio, Coca-Cola (NYSE: KO), Bank of America (NYSE: BAC), and Apple (NASDAQ: AAPL) are notable equities to consider buying now for the end of 2024.
Picks for you
Coca-Cola (NYSE: KO)
Coca-Cola has been a cornerstone of Warren Buffett’s portfolio for decades. The beverage giant is renowned for its extensive global reach and dominant brand, ensuring a steady revenue stream. Despite challenges from shifting consumer preferences and boycotts, Coca-Cola has diversified its product offerings, boosting investor confidence.
As of 2024, Coca-Cola boasts a dividend yield of approximately 3%, making it an attractive option for income-focused investors. Last year’s earnings of $2.69 per share comfortably covered the $1.84 per share dividends, maintaining a steady payout ratio of around 68%.
This reliability has made the dividends almost as rewarding as the stock’s capital gains over the past 20 years, attracting interest from investment magnets like Buffett.
Interestingly, as reported by Finbold, on April 1, the beverage giant distributed its quarterly dividend of $0.485 per share. Buffett’s Berkshire Hathaway holds a stake of 400 million shares in the company, translating to $194 million in dividends for just one quarter.
KO’s stock performance has gained over 11% year-to-date, trading at $66 by the close of markets on July 31.
Bank of America (NYSE: BAC)
Bank of America is another Buffett favorite. As one of the largest lenders in the United States, it benefits from diverse revenue streams, including consumer banking, wealth management, and investment banking.
At the same time, BAC is a suitable investment, considering the company is a reputable brand. Its massive scale and extensive network of branches, corporate offices, and digital platforms give it a significant advantage in raising deposits and finding borrowers.
In 2024, Bank of America has offered a dividend yield of around 2.5%. Additionally, Bank of America’s strong capital position and prudent risk management practices make it a reliable choice for dividend investors seeking stability in the financial sector.
However, it is worth noting that Buffett has recently significantly reduced his stake in BAC, offloading about $3 billion worth of the stock. Analysts maintain that the sale could be Buffett capitalizing on the recent BAC stock rally.
By the end of the first quarter of 2024, BofA had a dividend rate of $0.96 per share, with Berkshire Hathaway receiving $991.55 million in annual dividend income from Bank of America alone.
Similarly, BAC stock has experienced a positive 2024, rallying by almost 20%. The equity was trading at $40 at the time of publication.
Apple (NASDAQ: AAPL)
While primarily known for its innovation and growth, Apple has also become a notable dividend stock in Buffett’s portfolio. The tech giant’s brand loyalty, cutting-edge products, and expanding services segment have propelled it to new heights.
Apple’s ability to generate substantial free cash flow allows it to reward shareholders through dividends and share buybacks.
Notably, in the quarter ending June 2024, Apple declared a dividend of $0.25, translating to a yield of 0.84%. Although the yield may seem modest compared to traditional dividend stocks, Apple’s consistent growth and capital appreciation potential make it an appealing investment.
Indeed, Apple stock has recovered in recent months, trading at $223 by the close of markets on July 31, reflecting YTD gains of 20%.
Overall, these highlighted stocks have shown significant growth potential over the years and are likely to continue on a similar trajectory in the coming months.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
