Beware Bear Market Rallies: 4 Super-Safe Warren Buffett Dividend Stocks to Buy Now

If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway Inc. (NYSE: BRK-B) shareholders meeting draws thousands of loyal fans who are investors. Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever.” So it is not surprising to report that, for all the success and stature Berkshire Hathaway has in the investment world, just seven top companies make up almost 75% of the funds’ total holdings.

One reason investors need to be careful now is that while the furious market rally from last week was a refreshing sign for weary investors, the reality is that all bear markets going back as long as 50 years ago have had big bear market rallies that faded before the selling resumed again. The news that the president was going to have 10% fixed tariffs for everybody except China was a welcome sign, and the market posted the biggest one-day rally since 2008, but the sellers returned the next day. Bear market rallies are common and happened in 2008/2009 during the great financial crisis, in 2000 during the dot-com implosion, and in 2020 when we had the Covid-related sell-off.

What makes sense for investors brave enough to wade into the waters and put some cash to work is to buy some of the safest dividend stocks that Buffett owns. Berkshire Hathaway has a long history of beating the market. Over the past 20 years, Berkshire Hathaway delivered an average annual return of 12.1%, compared to the S&P 500’s 11.5%, and some of the safest dividend stocks in the portfolio Buffett has owned for years and likely has no intention of ever selling. We found four that make sense for growth and income investors now. 

Why do we cover Warren Buffett stocks?

There are few investors with the results and the reputation Buffett has garnered over the last 50 years, and while investing has changed over the previous half-century, buying good companies with products and services that are known worldwide while paying dividends will always stay in style.

Coca-Cola

This American multinational corporation was founded in 1892, and its stock remains a top long-time holding of Buffett. He owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Domino’s Pizza

This American multinational pizza restaurant chain was founded in 1960. Buffet bought the stock in 2024. Domino’s Pizza Inc. (NASDAQ: DPZ) is a company that operates a significant business in both delivery and carryout pizza.

The company operates through three segments:

• U.S. Stores
• International Franchise
• Supply Chain

The U.S. Stores segment primarily comprises franchise operations, consisting of franchised stores in the United States. The segment also operates a network of United States Company-owned stores.

The International Franchise segment primarily includes operations related to the Company’s franchising business in foreign markets.

The Supply Chain segment primarily includes distributing food, equipment, and supplies to stores from the Company’s supply chain center operations in the United States and Canada. Its Pinpoint Delivery technology allows customers to receive a delivery nearly anywhere, including parks, baseball fields, and beaches.

Domino’s Pizza is a public restaurant brand with a global enterprise of over 20,500 stores in over 90 markets.

Kraft Heinz

Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest in the world. Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous dividend. Kraft Heinz was formed via the merger of H.J. Heinz and Kraft Foods.

The company is a leading global food company with estimated annual revenues of $25 billion from well-known brands such as Kraft, Heinz, Oscar Meyer, and Maxwell House. The company derives 76% of its revenues from that market and 24% from the International segment.

The company’s additional brands include:

• ABC
• Capri Sun
• Classico
• Jell-O
• Kool-Aid
• Lunchables
• Ore-Ida
• Philadelphia
• Planters
• Plasmon
• Quero
• Weight Watchers
• Smart Ones
• Velveeta

 Kroger

Kroger Co. (NYSE: KR) is an American retail company that operates supermarkets and multi-department stores throughout the United States. This grocery chain giant is always a solid, conservative idea. Kroger operates combination food and drug stores, multi-department stores, marketplace stores, and price-impact warehouses.

Its combination of food and drug stores offers:

• Natural food and organic sections
• Pharmacies
• General Merchandise
• Pet centers
• Fresh seafood and organic produce

Multi-department stores offer:

• Apparel
• Home fashion and furnishings
• Outdoor living
• Electronics
• Automotive products
• Toys

The company’s marketplace stores offer:

• Full-service grocery, pharmacy, health and beauty care
• Perishable goods, as well as general merchandise, including apparel, home goods, and toys
• Price-impact warehouse stores sell groceries, health and beauty care products, meat, dairy, baked goods, and fresh produce

The company also manufactures and processes food products in its supermarkets and online; it sells fuel through 1,613 fuel centers.

Kroger owns 22 companies, including Harris Teeter, Smith’s Food and Drug, Ralphs, King Soopers/City Market, and Roundy’s Supermarkets.

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