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Warren Buffett is the greatest investor ever.
$100 invested in Berkshire in 1965 became more than $6 million (!) at his retirement.
Buffett is known as a value investor, but his top holdings have one thing in common…
Dividends.
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In our last article, we looked at the changes that Greg Abel made to the Berkshire portfolio.
Today we’re going to look at the dividend portfolio that Warren Buffett left him.
Here’s all of Buffett’s dividend stocks at his retirement.
Berkshire Hathaway collected 3.45 billion dollars in dividends last year from just 5 stocks
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Buffett’s Top Dividend Payers
Let’s look a bit deeper into each of these companies.
1. Chevron Corp. (CVX)
How does the company make money?
Chevron is an integrated oil company.
They handle everything from finding and producing crude oil to transporting it, and refining it into products like the gas you use in your car.
They make money from:
Upstream: They find and pump oil and gas globally. This is their biggest money-maker
Downstream: They turn that oil into gasoline, jet fuel, and chemicals at their refineries
Renewable Energy: They are investing heavily in green hydrogen and renewable fuels to stay relevant for the future
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What’s the moat?
Scale and Integration: Because they own the wells, the pipes, and the refineries, they save money at every step
Advantaged Assets: Their recent acquisition of Hess gives them a huge stake in Guyana, one of the most profitable oil discoveries in decades
Financial Strength: They have one of the strongest balance sheets in the world, allowing them to survive when oil prices drop
Why is it an interesting dividend stock?
Current dividend yield: 3.8%
Payout ratio: 120.7%
2-Year Forward Dividend Growth: 4.2%
2–Year Forward Revenue Growth: 4.7%