Warren Buffett May Be Stepping Down, but Berkshire Hathaway Will Always Own These 4 Dividend Giants

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 shareholders meeting draws thousands of loyal fans who are investors. This year, he surprised the attendees at the shareholder meeting by announcing that he was stepping down as chief executive officer at the end of the year. This marks the end of a magnificent 60-year run, as Buffett has been at the helm of Berkshire Hathaway since 1965. He took control of the company, then a struggling textile manufacturer, and transformed it into a diversified holding company known for its solid and profitable investments.

Long-time investors and Buffett mavens are familiar with this 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. While Abel may be inclined to make some changes to the portfolio, four top long-time holdings are likely to remain as bedrock stocks for the company, and it is highly unlikely they will ever be removed. All pay reliable dividends, and all have been among Buffett’s favorite holdings over the years.

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With a 15-year track record of covering Buffett and Berkshire Hathaway at 24/7 Wall St., we must keep our readers abreast of the financial powerhouse’s latest news. Many of our readers either own the shares or are considering a purchase, so it is good to keep them updated regularly.

American Express

This American bank holding company and multinational financial services corporation specializes in payment cards. The stock has performed exceptionally well over the past year. American Express Co. (NYSE: AXP) is a globally integrated payments company that deals with card-issuing, merchant-acquiring, and card network businesses.

It offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations.

Its segments include:

• U.S. Consumer Services (USCS)
• Commercial Services (CS)
• International Card Services (ICS)
• Global Merchant and Network Services (GMNS)

USCS offers travel and lifestyle services, as well as banking and non-card financing products.

CS offers payment, expense management, banking, and non-card financing products.

ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business.

GMNS operates a payments network that processes and settles card transactions, acquires merchants, and provides multichannel marketing programs, capabilities, services, and data analytics.

Berkshire Hathaway owns 151,610,700 shares, 21.6 % of American Express’s float, and 15.8% of the portfolio.

Bank of America

This American multinational investment bank and financial services company posted outstanding first-quarter results and plans to increase its share repurchase activity. Bank of America Corp. (NYSE: BAC) is a ubiquitous bank and financial holding company in the United States.

Its segments include:

• Consumer Banking
• Global Wealth & Investment Management (GWIM)
• Global Banking
• Global Markets

The Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.

The GWIM includes two businesses:

• Merrill Wealth Management, which provides tailored solutions to meet clients’ needs through a complete set of investment management, brokerage, banking, and retirement products
• Bank of America Private Bank, which provides comprehensive wealth management solutions

The Global Banking segment offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.

The Global Markets segment provides sales, trading, and research services to institutional clients across fixed-income, credit, currency, commodity, and equity markets.

Despite selling a stunning 326 million shares in 2024, Berkshire Hathaway still owns 680,233,587 shares, which is 9% of the float and 10.3% of the portfolio.

Chevron

This American multinational energy corporation specializes in oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a rich dividend. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide.

The company operates in two segments. The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines
• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Chevron announced in the fall of 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The deal is finally expected to close this summer.

Berkshire Hathaway owns 6.8% of Chevron’s outstanding stock, comprising 123.000,000 shares, and the energy giant accounts for 5.9% of the portfolio. Each year, the stock generates $776,734,888 in dividend income.

Coca-Cola

Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Buffett. He owns a massive 400 million shares, which represent 9.3% of the float and 9.7% of Berkshire Hathaway’s shares. Coca-Cola 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, 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 over 1.9 billion servings per day. It’s also important to remember that the company owns 16.7% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver strong financial results.

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