We preferred companies with a healthy track record of dividend growth. Some top names in the list include Bank Of America Corp (NYSE:BAC), Coca-Cola Co (NYSE:KO) and Occidental Petroleum Corp (NYSE:OXY). The list is ranked in ascending order of Buffett's stake value in these companies.
If the average dividend yield of your portfolio is 4%, you'd need a substantial investment to generate $3,000 per month. To be precise, you'd need an investment of $900,000.
Top Warren Buffett Stocks
Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million. Apple (AAPL), 300 million. Occidental Petroleum (OXY), 264.3 million.
Bill & Melinda Gates Foundation Trust's top holdings are Microsoft Corporation (US:MSFT) , Berkshire Hathaway Inc. (US:BRK.B) , Waste Management, Inc. (US:WM) , Canadian National Railway Company (US:CNI) , and Caterpillar Inc. (US:CAT) .
Buffett's Two Lists is a productivity, prioritisation and focusing approach where you write down your top 25 goals; circle your 5 highest priorities; then focus on those 5 while 'avoiding at all costs' doing anything on the remaining 20.
Last February, Coca-Cola raised its dividend payout for the 62nd consecutive year. At recent prices, the stock offers a 3.2% yield that's rising, albeit slowly.
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get you $500 a month.
Coca-Cola: $24.3 billion (8.2% of invested assets)
Consumer staples goliath Coca-Cola (KO -1.04%) is the stock Buffett's company has held the longest (since 1988), and it's also considered a forever holding by the Oracle of Omaha.
This is why he believes Berkshire shareholders are better served when he retains all the company's earnings and reinvests it rather than paying it out as dividends.
Mark Zuckerberg currently owns a total of 1 stock. Mark Zuckerberg owns 394,265 shares of Meta Platforms Inc (META) as of January 8, 2025, with a value of $243 Million.
Apple. Apple (NASDAQ: AAPL) has ranked as the largest holding in Buffett's Berkshire Hathaway portfolio for several years. The iPhone maker is still at the top early in the new year. Berkshire owns 300 million shares of Apple worth around $73.2 billion, representing 24.8% of its total holdings.
The rich and powerful are the largest holders of silver. Bill Gates, Warren Buffet, and Thomas Kaplin have all made fortunes investing in silver, with Buffet making a cool $97 million so far, and Thomas Kaplin crediting silver to what made him a billionaire, stating silver is “gold on steroids”.
In the second quarter of 2024, Buffett again bought more shares of Chubb, Occidental, the two Liberty Media Sirius XM tracking stocks, and Sirius XM. He also initiated new positions in aerospace and electronics company Heico and cosmetics retailer Ulta Beauty.
Warren Buffett says he'd give up an extra year of his life to be able to eat anything he wants. Famously a fan of junk food, the 92-year-old has said he drinks 5 cans of Coke a day and eats McDonald's daily. "I always tell people: I found everything I like to eat by the time I was six," he told CNBC.
To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.