Are These The Best Warren Buffett Stocks To Buy Now?
Between Ukraine-Russia border tensions and the Federal Reserve’s plans to aggressively tighten monetary policy, stocks are in a tricky position. Accordingly, all this turbulence could see investors turning toward the top Warren Buffett stocks in the stock market today. For those uninitiated, Buffett is mostly known for investing in value stocks, also known as value investing. The likes of which involve reviewing and considering the price of a company’s shares versus its supposed intrinsic value. In other words, the famed “Oracle of Omaha” looks at a company’s fundamentals and makes moves when prices are ideal for him.
For the most part, this sounds like a rather straightforward strategy at face value. However, Buffett has and continues to make hundreds of billions via his Berkshire Hathaway (NYSE: BRK.A) conglomerate. Now, some of the biggest holdings in Buffett’s portfolio are linked to companies that pay sizable dividends. This would be yet another point to consider when looking into his investment strategies. Through dividends alone, Berkshire Hathaway is expected to rake in a whopping $3.8 billion in payouts throughout 2021. For one thing, these payouts would help in weathering the current volatility in the stock market.
To point out, Berkshire Hathaway recently made a $1 billion move on shares of Activision (NASDAQ: ATVI). This would be before the Microsoft (NASDAQ: MSFT) acquisition. Following internal management issues, ATVI stock did dip close to its pandemic-era low back in December. Should things go as planned., Buffett is set to receive robust profits from the ongoing acquisition. With all that said, here are five of the Oracle of Omaha’s largest holdings now.
Top Warren Buffett Stocks To Watch This Month
- Apple Inc. (NASDAQ: AAPL)
- Bank Of America Corporation (NYSE: BAC)
- American Express Company (NYSE: AXP)
- Coca-Cola Company (NYSE: KO)
- Kraft Heinz Company (NASDAQ: KHC)
Apple is a multinational technology company that is also one of Berkshire Hathaway’s best bets. In fact, it bought a 5% stake in Apple in 2018 for $36 billion and it is now worth over $140 billion. Apple has also been paying regular dividends to Warren Buffett’s conglomerate, averaging about $775 million annually. Apple has also gone to become Berkshire’s third-largest business after its insurance and railroad interests. AAPL stock is up by over 30% in the past year alone.
On February 8, 2022, Apple announced that later this year, businesses will be able to accept contactless payments through Tap to Pay on iPhone. The new feature will empower millions of merchants across the U.S. and would include small businesses to large retailers. Tap to Pay on iPhone will also be available for payment platforms and app developers to integrate into their iOS apps.
The company will work closely with leading payment platforms and app developers across the industry to offer Tap to Pay to its users. With this exciting piece of news, is AAPL stock worth adding to your portfolio today?
Bank of America Corporation
Following that, we have Bank of America, another Warren Buffett stock. The company is one of the world’s leading financial institutions, serving from individual consumers to small and medium businesses to large corporations.
It also provides a full range of banking, investing, asset management, and other financial and risk management products and services. In the U.S., it serves approximately 67 million consumer and small business clients.
Last month, the company reported its fourth-quarter and full-year financials. Diving in, it posted a record net income of $32 billion for the full year or a diluted earnings per share of $3.57. Revenue for the quarter was $89.1 billion. Bank of America also returned capital to shareholders, with $6.6 billion in dividends, and repurchased $25.1 billion of common stock. Earlier in the month, the company declared a regular quarterly cash dividend of $0.21 per share. All things considered, is BAC stock a buy?
American Express Company
American Express is a globally integrated payments company that provides customers with access to products, insights, and experiences that enrich lives and build better businesses. Notably, its integrated payments platform includes card-issuing, merchant-acquiring, and card network businesses. AXP stock is another one of Berkshire Hathaway’s holdings, at a 19.57% stake with a market value of $24.8 billion.
Last week, the company launched American Express Rewards Checking (Amex Rewards Checking), the company’s first all-digital consumer checking account. It will be available for eligible U.S. Consumer Card Members.
Amex Rewards Checking offers a range of benefits for its users, including Membership Reward points for eligible Debit Card purchases and Purchase Protection for eligible purchases among others. For these reasons, is AXP stock a buy?
The fourth-largest holding on Berkshire Hathaway’s portfolio would be Coca-Cola. The firm holds 400 million units of KO stock as of the end of 2021. Overall, Coca-Cola would be another company that naturally falls within Buffett’s investment strategy.
The beverage industry titan remains a top pick among investors looking to jump on the top dividend stocks now. As it stands, the company currently offers a quarterly dividend of $0.44. This adds up to an annual dividend yield of about 2.83%.
Even amidst concerns of rising inflation, Coca-Cola continues to perform on the financial front. Notably, the company posted solid figures across the board in its latest quarterly earnings update last week. In it, Coca-Cola saw an earnings per share of $0.45 on revenue of $9.46 billion. This would be above consensus Wall Street estimates of $0.41 and $8.96 billion respectively. With all this in mind, would you consider KO stock a top buy?
Kraft Heinz Company
Last but definitely not least is Kraft Heinz. Following Coca-Cola, Kraft Heinz is fifth on this list of Berkshire Hathaway’s largest holdings. The firm’s position in Kraft Heinz currently consists of about 325.6 million shares. For the most part, investors and consumers alike would be familiar with the company’s offerings. In essence, Kraft Heinz is a goliath in the global food industry now. To put things into perspective, it raked in total net sales of approximately $26 billion throughout 2021.
Moreover, the company also offers a quarterly dividend payout of $0.40 per share now. In terms of annual dividend yield, we are currently looking at a yield of 4.1%. At the same time, Kraft Heinz remains hard at work adapting its operations to the current digital age.
Namely, as of today, it is currently working with Alphabet (NASDAQ: GOOGL) subsidiary Google. Through the multi-year strategic partnership, the duo aims to leverage Google Cloud’s data and analytical tech to enhance Kraft Heinz’s overall marketing strategy. As such, will you be adding KHC stock to your portfolio?