Warren Buffett's High-Yielding Dividend Stocks: A Look at the Best of the Bunch

Warren Buffett's Berkshire Hathaway owns 10 high-yield dividend stocks, but has never paid shareholders a dividend. The company invests in turnaround companies with high dividend yields. Three top holdings are Kraft Heinz, Sirius XM, and Chevron, with yields of 5.6%, 4.5%, and 4.5%, respectively. Buffett's secret portfolio includes seven additional high-yielding stocks, including Golub Corp and Owens-Illinois.

Warren Buffett's Berkshire Hathaway has long been known for its impressive investment returns, but one aspect that sets it apart is its policy of never paying dividends to shareholders. Despite this, Berkshire Hathaway has invested in several high-yielding stocks, making them attractive to investors seeking steady income. As of July 2025, Berkshire Hathaway owns ten high-yield dividend stocks, with three notable holdings among its top 20 equity positions.

Top Holdings: Kraft Heinz, Sirius XM, and Chevron

Three of Berkshire Hathaway's top 20 equity holdings are Kraft Heinz (NASDAQ: KHC), Sirius XM (NASDAQ: SIRI), and Chevron (NYSE: CVX), which have dividend yields of roughly 5.6%, 4.5%, and 4.5%, respectively. Kraft Heinz, a joint venture between Berkshire Hathaway and Brazilian private equity firm 3G, has faced challenges since its merger with Heinz in 2015, with the stock down approximately 4.7% this year [1]. Sirius XM, a digital audio company, has seen a significant decline of 30% over the past year but remains a legal monopoly with potential for long-term growth. Chevron, a major U.S. oil and gas producer, has increased its dividend for 38 consecutive years and is expected to benefit from long-term oil price increases [1].

Buffett's Secret Portfolio

While Berkshire Hathaway's main portfolio is publicly disclosed, Buffett also manages a "secret portfolio" through New England Asset Management (NEAM), a subsidiary acquired through General Re in 1998. This portfolio includes seven additional high-yielding dividend stocks, such as Golub Capital BDC (NASDAQ: GBDC) with a yield of 10.2%, Ares Capital (NASDAQ: ARCC) with 8.4%, and Pfizer with 6.8% [1].

Realty Income: A Standout in Buffett's Portfolio

Realty Income (NYSE: O), a real estate investment trust (REIT), stands out among Buffett's high-yield stocks. With a yield of 5.6%, Realty Income has consistently increased its quarterly dividend for 110 consecutive quarters, making it one of the most reliable dividend-paying stocks. The company's focus on triple-net-lease properties and its expansion into higher-growth sectors like gaming and data centers further enhance its appeal [1].

Conclusion

Berkshire Hathaway's investment in high-yield dividend stocks highlights Warren Buffett's strategy of focusing on long-term growth and turnaround opportunities. While the company's top holdings like Kraft Heinz and Sirius XM have faced recent challenges, their high dividend yields make them attractive to income-seeking investors. Realty Income, in particular, stands out as a reliable dividend payer with a strong track record of consistent growth. Investors should consider these factors when evaluating Berkshire Hathaway's high-yield dividend stocks.

References

[1] https://finance.yahoo.com/news/warren-buffett-owns-10-high-080000122.html
[2] https://www.aol.com/warren-buffett-owns-10-high-080000365.html