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24/7 Insights
If any investor has stood the test of time, it’s 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.
Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever”, so it may be surprising to some that Berkshire Hathaway went on a massive selling spree recently. Mr. Buffett sold a stunning 49% of his stake in Apple Inc. ( NASDAQ: AAPL ), and despite the sales, the iPhone maker remains the most prominent position in the portfolio.
Taking advantage of a huge 23% second-quarter move to all-time highs in the stock, Apple's position was once a massive 50% of Berkshire Hathaway. The selling comes in addition to a huge drawdown in Bank of America, Inc. ( NYSE: BAC ) shares, where Mr. Buffett sold 3.8 billion worth of stock after a reported 12-day selling binge.
We decided to screen the remaining Berkshire Hathaway holdings, looking for the stocks that pay the biggest dividends. Based on current reporting data, Warren Buffett hasn't been selling any of these top companies. Dividend investors have to check out this free report. https://247wallst.com/dividend-legends/?tpid=1407652&tv=link&tc=in_content
Why are we covering this?
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska.
With a 15-year track record of covering Mr. Buffett and Berkshire Hathaway at 24/7 Wall St., it is important to keep our readers updated on the top news from the financial powerhouse.
Ally Financial
Ally Financial was formerly known as GMAC.
The bank, which has no buildings, posted outstanding second-quarter earnings and paid a significant 2.95% dividend. Ally Financial, Inc. ( NYSE: ALLY ), a pioneer in the digital financial services industry, offers a diverse range of innovative digital financial products and services to consumer, commercial, and corporate customers, primarily in the United States and Canada.
It operates through four segments:
- Automotive Finance Operations
- Insurance Operations
- Mortgage Finance Operations
- Corporate Finance Operations
The Automotive Finance Operations segment offers:
- Automotive financing services, including retail installment sales contracts
- Loans and operating leases
- Term loans to dealers
- Financing dealer floor plans and other lines of credit to dealers
- Warehouse lines to automotive retailers
- Fleet financing.
It also provides financing services to companies and municipalities to purchase or lease vehicles and vehicle remarketing services.
The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, as well as commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contracts and guaranteed asset protection products and underwrites commercial insurance coverages, which primarily insure dealers' vehicle inventory.
The Mortgage Finance Operations segment manages a consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans from third parties and direct-to-consumer mortgage offerings.
The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies and leveraged loans and commercial real estate products to serve companies in the healthcare industry.
Ally Financial also offers commercial banking products and services, securities brokerage, and investment advisory services.
Chevron
Chevron Corporation is an American multinational energy corporation predominantly specializing in oil and gas.
This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a rich 4.39% dividend. Chevron Corporation ( NYSE: CVX ) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
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 product
- 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 last fall that it has entered into a definitive agreement with Hess Corporation ( NYSE: HES ) to acquire all of 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.
Citigroup
Citigroup Inc. is an American multinational investment bank and financial services company in New York City.
This is another top bank, that Warren Buffett bought a massive $2.5 billion worth of stock back in the summer of 2022 , pays a dependable 3.66% dividend and posted strong second quarter results. Citigroup Inc. ( NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.
Citigroup offers:
- Consumer banking and credit
- Corporate and investment banking
- Securities brokerage
- Transaction services
- Wealth management services
Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).
Trading at a still cheap 8.3 times estimated 2025 earnings; this company looks very reasonable in a volatile stock market in a sector that dramatically lagged.
Kraft Heinz
Kraft Heinz is the third-largest food and beverage company in North America.
Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 4.44% dividend. The Kraft Heinz Company ( NYSE: KHC ) was formed via the merger of H.J. Heinz Company and Kraft Foods Group.
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, and 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
- Oscar Mayer
- Philadelphia
- Planters
- Plasmon
- Quero
- Weight Watchers
- Smart Ones
- Velveeta
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