After A Tumultuous Q3, Warren Buffett Holds Onto 2 High Yielding Defensive Stocks
Warren Buffett, one of the most prolific Wall Street investors, is the fifth wealthiest in the world. The CEO and founder of Berkshire Hathaway Inc. (NYSE: BRK-A) boasts a net worth of more than $100 billion. He has also been increasingly philanthropic in his later years, pledging to donate nearly all his wealth to charity.
Buffet has now donated at least $48 billion to charity with much of it going towards the Bill & Melinda Gates Foundation as well as his children’s foundations, per Forbes.
About three-quarters of Berkshire Hathaway is invested in five positions:
- Apple (NASDAQ:AAPL)
- Bank of America (NYSE:BAC)
- Coca-Cola (NYSE:KO)
- Chevron (NYSE:CVX)
- American Express (NYSE:AXP).
Buffett once said that the best way to protect yourself from inflation is to improve your earning power by maximizing your own talents in your profession.
Here are two dividend stocks Buffett has continued to hold in the third quarter:
- Kraft Heinz Company (NASDAQ:KHC) offers a dividend yield of 4.33% or $1.60 per share annually, through quarterly payments, with an inconsistent track record of increasing its dividends. After Kraft merged with Heinz in July 2015, it became the third-largest food and beverage manufacturer in North America and the fifth-largest player in the world. In 2021, Kraft Heinz saw net sales of approximately $26 billion, and has at least 24 brand name products which include Kraft, Heinz, Oscar Mayer, Jell-O, Philadelphia, Lunchables, among others.
- Citigroup Inc. (NYSE:C) is offering a dividend yield of 4.16% or $2.04 per share annually, making quarterly payments, with an infrequent track record of increasing its dividends. Citigroup is a global financial services company doing business in more than 100 countries and jurisdictions, with its main two segments being: the global consumer banking segment and the institutional clients group. After doing fairly well in 2021, Citigroup has wiped away all of last year's gains within the first half of 2022. Shockingly, the international banking behemoth is trading at a steep discount to its book value which is at $92.71 per share.