Warren Buffett Is Very Worried: If You Are Too, Buy 4 of His Safest Dividend Stocks

Through filings, it was reported that Warren Buffett sold $133 billion of stocks in the first nine months of 2024 and bought less than $6 billion worth. In comparison, the portfolio managers sold a net $24 billion of stocks in 2023 and purchased a net $34 billion in 2022. In addition, he stopped buying back Berkshire Hathaway stock in the last half of 2024 and has a massive $325 billion in cash and treasury bills. He now owns more treasury bills than the Federal Reserve. There can be only one reason for this: he’s worried that the stock market is way overbought and too expensive.

Long-time investors and Buffett mavens are familiar with the quote, “His favorite holding for an S&P 500 stock is forever,” so it is not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, just seven top companies make up almost 75% of the funds’ total holdings. While much more concentrated than most portfolio managers would consider, the strategy has worked for Berkshire Hathaway investors for years and likely will continue to do so.

Given his apparent concern over the stock market now and his massive cash and T-bill holdings, it makes sense for investors to buy some of the most conservative stocks in the Berkshire Hathaway portfolio. Four companies look like very safe ideas for investors now, and all are rated Buy at top firms on Wall Street we cover.

Why do we cover Buffett stocks?

There are few investors with the results and the reputation Buffett has garnered over the past 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 company remains a top long-time Buffett holding. He owns a massive 400 million shares, and it pays a dependable 3.08% dividend. 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 number one 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 Corp. (NASDAQ: MNST), which continues to deliver big numbers.

Domino’s Pizza

This is another stock that Warren Buffet bought in 2024. The pizza giant pays a 1.41% dividend. 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 is primarily comprised of 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 the distribution of 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 more than 20,500 stores in over 90 markets.

Kraft Heinz

Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 5.40% dividend. Kraft Heinz Co. (NYSE: KHC) 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.

Kraft Heinz is North America’s third-largest food and beverage manufacturer. It derives 76% of its revenues from that market and 24% from International.

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

This grocery chain giant is always a solid, conservative idea and Buffett pick that pays a 2.09% dividend. Kroger Co. (NYSE: KR) is a retailer in the United States. It 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.

For Almost $14,000 per Year in Dependable Passive Income, Invest $25,000 in These 4 Stocks

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