Summary: Named “Oracle of Omaha” by the global media, Warren Buffett is one of the world’s most famous and successful investors. Since his stock investments tend to be successful, his portfolio represents investing inspiration to many. This guide will explore 3 Warren Buffett dividend stocks to buy this month and explain each step of the process using a regulated brokerage like eToro.
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Who is Warren Buffett?
About
Investing in stocks since childhood, Buffett has become the seventh-richest person in the world. Furthermore, he has gathered a flock of devoted followers among investors who proceed to endorse his investment choices, owing to his decades-long tradition of backing winners.
Berkshire Hathaway has woven a tight portfolio of sizable positions in numerous public companies, frequently including significant portions in blue-chip stocks. Tailing his successful investment projects, many investors managed to secure their own share of profits.
3 Warren Buffett dividend stocks to buy this month
We have spotted three dividend stocks in Warren Buffett’s portfolio to invest in this month. Chosen for their current dividend yields, historical performance, and consistent increase in dividend payouts, these include:
- Apple (Nasdaq: AAPL)
- Bank of America (NYSE: BAC)
- The Coca-Cola Company (NYSE: KO)
Note
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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1. Apple (AAPL)
Apple Inc. (Nasdaq: AAPL) is a leading multinational tech company. Based in the United States, it is one of the most profitable tech giants in the world. The company’s innovative consumer electronics, like mobiles, tablets, and PCs, are ubiquitous gadgets, and its brand is a worldwide household name. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple played a pivotal role and significantly shaped the world’s technological landscape.
Berkshire Hathaway started investing in Apple in 2016. As of December 2023, AAPL remains Buffett’s most significant equity position, constituting over 41% of its total portfolio. Although this Warren Buffett trademark stock has an unimpressive dividend yield of 0.50%, Apple’s dividend payouts have more than doubled in the past decade as the company remains committed to stable and reliable growth.
AAPL stock price today
AAPL estimated annual dividend yield
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2. Bank of America (BAC)
The Bank of America Corporation (NYSE: BAC) is a prominent American financial firm and the second-largest bank in the world by market capitalization. Operating a massive network of branches and ATMs, the bank provides various financial services to individuals, businesses, and institutions worldwide, such as checking and savings accounts, credit cards, and mortgages.
Investing in Bank of America as early as 2011 and owning more than a fifth of the corporation, Berkshire Hathaway has helped prop up the bank during the Eurozone debt crisis. Today, it forms more than 10% of his stock portfolio. While the stock has a lucrative face valuation, it has a spotless rise in dividend payments and more than a decade of stable dividend payments.
As one of the best Warren Buffett dividend stocks, its current dividend yield is 3.10%.
BAC stock price today
BAC estimated annual dividend yield
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3. The Coca-Cola Company (KO)
The Coca-Cola Company (NYSE: KO) is a leading beverage company known for its globally iconic product, Coca-Cola. Today, the company’s portfolio includes various soft and non-alcoholic beverages, including Fanta and Sprite. Being an omnipresent company on the global market and one of the symbols of the success of capitalism and American culture, the company operates in more than 200 countries worldwide.
As one of the earliest investing ventures of Warren Buffett and Berkshire Hathaway, Coca-Cola makes up approximately 7% of the investor’s current portfolio. With several decades of stable frequency and consistent growth rate of dividend payments, KO is among the best Warren Buffett dividend stocks. It has a dividend yield of 3.14% as of December 2023.
KO stock price today
KO estimated annual dividend yield
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Where to buy Warren Buffett dividend stocks
You can follow Buffett’s steps and invest in dividend stocks. Our recommended choice for this is eToro. Enjoying widespread popularity with over 30 million registered accounts, it stands out for its robust features, including:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Charting tools;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of buying Warren Buffett dividend stocks
Pros
- Stable revenue source: Dividend stocks provide a consistent income stream through dividends, offering a steady and reliable cash flow. These payments are particularly attractive to conservative, value, and long-term investors;
- Warren Buffett’s historical success: Many of Warren Buffett’s investments in dividend stocks achieved a lasting legacy of consistent performance and long-term growth, which is why many followed his track – and succeeded;
- Shareholder-friendly and value-driven companies: Companies with dividend stocks often prioritize shareholder value. A healthy dividend history is a valuable signal of strength and stability;
- Dividend growth potential: All three dividend stocks listed here have increased dividend payouts over time, providing investors like Warren Buffett with income growth.
Cons
- Interest rate susceptibility: Dividend stocks tend to be vulnerable to interest rate changes. When interest rates rise, income-focused investors may shift to fixed-income securities, potentially affecting the prices of dividend stocks;
- Market volatility: While dividend stocks are often less volatile than growth stocks, they can still suffer from market fluctuations, economic downturns, or industry-specific challenges;
- Dividend Cuts: Companies may cut or eliminate dividends during challenging economic times or financial difficulties, impacting the income stream for investors, which happened to Bank of America;
- Historical performance is not a guarantee of success: While Warren Buffett has a history of shrewd and successful investments, historical performance does not guarantee future success.
For additional trending dividend investments to make this month, consider the following articles:
- 3 undervalued dividend stocks to buy this month;
- 3 best energy dividend stocks to buy this month;
- 3 oil dividend stocks to buy this month;
- 3 small cap dividend stocks to buy this month;
- 3 best UK dividend stocks to buy this month;
- 3 best dividend stocks to buy this month.
Common mistakes to avoid when investing
Make sure to avoid these common investing mistakes:
- Lack of research: Research these dividend stocks in detail, along with the general state of Warren Buffett’s portfolio, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Warren Buffett dividend stocks
Who is Warren Buffett?
Warren Buffett is an American businessman and the chairman and CEO of Berkshire Hathaway. He is one of the most famous investors in history, known for emphasizing long-term value and focusing on solid blue-chip companies.
Why do people invest in Warren Buffett stocks?
Due to a widely known and successful history of stock investment, Warren Buffett is often an inspiration to budding investors. Tailing his successful investment projects, many investors managed to secure their own share of profits.
How to invest in Warren Buffett stocks?
Investing in dividend stocks from Warren Buffett’s portfolio is straightforward; you must register an account with a regulated online brokerage like eToro, transfer some funds, and buy the shares.
What are the best Warren Buffett dividend stocks to buy this month?
The three top Warren Buffett dividend stocks to invest in this month are Apple (AAPL), Bank of America (BAC), and Coca-Cola (KO).
