What do Kraft Heinz (KHC), Store Capital (STOR), General Motors (GM), Teva Pharmaceuticals (TEVA), and Verizon (VZ) have in common? They're Warren Buffett dividend stocks with the highest yields.
To be sure, telecom giant Verizon plays a trifling role in the legendary investor's Berkshire Hathaway (BRKB) portfolio. Meanwhile, Apple (AAPL) — the best-loved Buffett stock with a 26% portfolio weighting — yields 1.65%. That's less than the current 1.93% dividend yield on the S&P 500 index.
Overall, the widely followed Berkshire Hathaway investment portfolio shows Warren Buffett knows the value of a consistent and growing dividend, even if he's no fan of paying dividends himself. In fact, the top dozen stocks Berkshire Hathaway owns all pay dividends.
Berkshire Hathaway stock lost 3.4% in the stock market today, falling below its 50-day line for the first time since gapping higher Nov. 5 on Q3 earnings results. Apple stock dived 4.6% Tuesday, extending its decline below the 200-day line last week.
These five Warren Buffett stocks boast the highest dividend yields, more than double the S&P 500:
Kraft Heinz Stock
Two consumer packaged goods companies, Kraft Heinz stock and Dow stock Coca-Cola (KO) rank among Berkshire's five biggest holdings by market value. Berkshire also owns Burger King parent Restaurant Brands (QSR).
Dividend payout and yield: Kraft Heinz stock provides a $2.50 annual dividend, yielding 4.8%. (The high yield coincides with a tumbling share price.)
Dividend growth rate: 9% (measured over the past three to five years).
Dividend stability factor: 15, on a scale from zero (most stable) to 99 (most volatile), measured over the past five years.
Berkshire Hathaway stake: Berkshire owns 325.6 million shares, as of the 13-F filing reported Nov. 14, with no change in the position over the third quarter of 2018.
Store Capital Stock
A real estate investment trust or REIT, Store Capital invests in single-tenant commercial properties, such as supermarkets and drugstores.
Dividend payout and yield: Store Capital stock offers a $1.32 cash dividend, yielding 4.5%. Shares sit near the all-time high of 31.44.
Dividend growth rate: 9%.
Dividend stability factor: 4.
Berkshire Hathaway stake: 18.6 million shares, with no changes made in Q3.
GM Stock
The automaker's new mobility bets now include electric bicycles, in addition to electric cars and self-driving cars. But for now, GM earnings that drive dividends are coming from gas-guzzling SUVs and trucks.
Dividend payout and yield: General Motors pays a $1.52 dividend, yielding 4.3%.
Dividend growth rate: 6%.
Dividend stability factor: 5.
Berkshire Hathaway stake: 52.5 million shares, with an addition of roughly 1.1 million shares in Q3.
Teva Stock
Berkshire Hathaway has owned the Israeli drugmaker since the fourth quarter of 2017, buying Teva stock as it made a multiyear low of 10.85. Shares have more than doubled since then.
Dividend payout and yield: Teva stock pays a 94-cent dividend, yielding 4.3%.
Dividend growth rate: 1%.
Dividend stability factor: 14.
Berkshire Hathaway stake: 43.2 million shares, with no change in Q3.
Verizon Stock
The telecom giant sees opportunities for market growth as it launches a next-gen 5G network. The new technology could even allow self-driving cars to talk to one another over a wireless network.
Dividend payout and yield: Verizon stock provides a $2.41 dividend, yielding 4%. Shares sit just below the all-time high of 62.27, reached in October 1999, after a solid rally this year.
Dividend growth rate: 3%.
Dividend stability factor: 0.
Berkshire Hathaway stake: 928 shares, with no change made in Q3.
