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The 3 Buffett-Backed Dividend Stocks That Beat the Market in 2025![]() With Warren Buffett at the helm, Berkshire Hathaway transformed from a struggling textile manufacturer into one of the world’s most successful and diversified holding companies. The “Oracle of Omaha” built his empire through disciplined value investing, acquiring only high-quality businesses and the best dividend-paying stocks the market has to offer. As the man himself says, “Buy into a company because you want to own it, not because you want the stock to go up.” So, it’s no surprise that many investors try to emulate his portfolio. Thanks to Berkshire Hathaway’s latest 13F-HR filing, we can review its current holdings. However, there are 36 publicly traded U.S. stocks on this list, and not everyone can diversify across that many companies —at least without using fractional shares. Today, I’m covering Berkshire Hathaway’s latest holdings and identifying its top three dividend stocks held, based on price performance, Wall Street ratings, and yields, so that you might consider them for your long-term portfolio. How I Came Up With The Following StocksI keep several watchlists on Barchart, one of which tracks Berkshire Hathaway’s latest holdings. From there, I clicked on the Screen button to go to the Stock Screener page. After that, I added the following filters:
After running the screen, I got nine companies, which I arranged from highest to lowest dividend yield. Now, let’s dive into the top three. Coca-Cola Company (KO)Is it any surprise that Coca-Cola takes the top spot? The global beverage company is a favorite among dividend investors for its strong cash flow, stable business structure, and decades-long history of dividend payments. But exactly how long are we talking about here? Well, the company has paid dividends since 1920, marking 2025 as its 105th consecutive year of dividend payments. Even better, it has increased its payouts for 63 straight years, earning it the well-deserved title of Dividend King. While KO stock’s price performance has been choppy this year thanks to the chaos surrounding U.S. President Donald Trump’s tariff negotiations, it has still managed to grow 10.99% YTD. Today, the company pays a $2.04 annual dividend, which reflects around a 2.95% yield. Analysts rate KO stock as a strong buy. Bank of America Corp (BAC)Next up is Bank of America, the second-largest bank in the U.S. The company boasts a broad customer base, solid balance sheet, and over $4 trillion in managed assets through its wealth management business. It’s also the nations top lender for small businesses in the US, which arguably gives it a strong foothold in the real, everyday American economy. BAC stock has grown 10.10% YTD. The company pays $1.04 per share annually, which translates to a yield of approximately 2.14%. It also has a consensus strong buy rating from 20 analysts. Kroger Company (KR)Last but not least is Kroger Company, one of the largest supermarket chains in the United States. The company operates more than 2,700 stores across, including food production facilities, fuel centers, pharmacies, and more. Although KR stock has the lowest analyst rating on this list at 4.10 (translating to a moderate buy), it’s the top-performing stock out of the three, with an 18.36% YTD return. Since reinstating dividends in 2006 after an 18-year hiatus (1988), the company has consistently increased its payouts. 2025 marks its 19th consecutive year, with a notable increase from $1.28 to $1.40- today that reflects around a 1.93% yield. It also means Kroger is six short years away from a potential Dividend Aristocrat title. Not only that, Kroger boasts the highest 5-year dividend growth rate on this list at 103.33%. Final ThoughtsCopying portfolios from investing legends like Warren Buffett can be a great way to start your long-term investment journey. However, it still pays to learn due diligence and know the ins and outs of your chosen companies. This involves understanding how it ticks, its business model, financial performance, and whether the company aligns with your goals, risk tolerance, and investment horizon. On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. |
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