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If I Could Only Buy 3 Warren Buffett Stocks Through 2025, I'd Pick These Dividend Stocks
CVXChevron(CVX) The Motley Fool·2024-10-21 13:53

Berkshire Hathaway's Market Position - Berkshire Hathaway surpassed 1trillioninmarketcapitalizationearlierthisyear[1]Thecompanyhas1 trillion in market capitalization earlier this year [1] - The company has 320 billion in public equity holdings and 276.9billionincashasofJune30[1]Berkshiresvaluealsocomesfromitsinsurancebusinesses,ownershipofBNSFrailroad,BerkshireHathawayEnergy,andotherprivatecompanies[1]CocaCola(KO)Berkshireowns400millionsharesofCocaCola,representing9.3276.9 billion in cash as of June 30 [1] - Berkshire's value also comes from its insurance businesses, ownership of BNSF railroad, Berkshire Hathaway Energy, and other private companies [1] Coca-Cola (KO) - Berkshire owns 400 million shares of Coca-Cola, representing 9.3% of the company and worth around 28 billion [3] - Coca-Cola has 62 consecutive years of dividend increases, demonstrating consistency and a strong balance sheet [4] - The company has a price-to-earnings (P/E) ratio of just over 28, which is relatively expensive for a low-growth business [5] Visa (V) - Visa has a simple yet effective business model that benefits from network effects and an international ecosystem of credit and debit cards [6] - The company makes money every time a card is swiped, tapped, entered online, or used as a mobile payment [7] - Visa's share count has been reduced by 21% over the last decade due to aggressive buybacks, and its stock price has soared 367% during that period [8] Chevron (CVX) - Berkshire owns 6.5% of Chevron, making it the fifth-largest public equity holding with a value of around $18 billion [9] - Chevron has paid and raised its dividend for 37 consecutive years, despite multiple oil and gas downturns [9] - The company's dividend yield is currently 4.4%, well above the S&P 500's yield of 1.3% and the Vanguard Energy ETF's yield of 3.3% [10]