Warren Buffett's Dividend Growth Stocks: 3 Picks That Just Hit All-Time Highs but Could Have More Room to Run in 2025

As the stock market continues to fluctuate, investors are on the lookout for stable and reliable investments that can weather the storm. One strategy that has proven successful over time is investing in dividend growth stocks. These companies have a history of increasing their dividends, providing a steady stream of income for investors. Warren Buffett, one of the world's most successful investors, has long been a fan of dividend growth stocks. In this article, we will explore three dividend growth stocks from Buffett's portfolio that have recently hit all-time highs but could still have more room to run in 2025.

1. Coca-Cola (KO)
Coca-Cola is a classic dividend growth stock that has been a staple in Buffett's portfolio for decades. The company has a strong brand and a global presence, which has allowed it to consistently increase its dividends. Coca-Cola has a forward dividend yield of 3.14% and has increased its dividend for 62 consecutive years. The company's ability to adapt to changing consumer preferences and maintain its brand strength has driven its long-term success. As the global economy recovers and consumer spending increases, Coca-Cola is well-positioned to continue its dividend growth in 2025.



2. Chevron (CVX)
Chevron is another dividend growth stock that has benefited from the global recovery in energy demand. The company has a strong balance sheet and a history of increasing its dividend for 37 consecutive years. Chevron's high dividend yield of 4.17% has attracted income investors, and its integrated business model has allowed it to navigate the ups and downs of the energy market. As the global economy continues to grow and demand for energy increases, Chevron is well-positioned to continue its dividend growth in 2025.

3. Bank of America (BAC)
Bank of America is a dividend growth stock that has benefited from the Federal Reserve's rate-hiking cycle. The company's significant net interest income has driven its earnings growth, and its competitive edge in interest rate sensitivity has allowed it to outperform its peers. Bank of America has a forward dividend yield of 1.94% and has increased its dividend for several consecutive years. As interest rates normalize and the bank's earnings growth continues, Bank of America is well-positioned to continue its dividend growth in 2025.



In conclusion, Warren Buffett's dividend growth stocks have proven to be a reliable investment strategy, even in uncertain market conditions. Coca-Cola, Chevron, and Bank of America are three dividend growth stocks that have recently hit all-time highs but could still have more room to run in 2025. By investing in these companies, investors can benefit from their strong brands, global presence, and history of dividend growth. As the global economy continues to recover and consumer spending increases, these dividend growth stocks are well-positioned to continue their success in the coming year.