Warren Buffett's Top 3 Dividend Stocks Outperforming the Market in 2025

Friday, Jul 25, 2025 7:17 pm ET1min read

Berkshire Hathaway's top three dividend stocks that beat the market in 2025 are Coca-Cola Company (KO), with a 3.4% yield, a 21.3% YTD return, and a strong buy rating from analysts. Other notable stocks include Procter & Gamble (PG) and PepsiCo (PEP), both with yields over 2.6% and positive YTD returns. These stocks have outperformed the S&P 500 and have strong analyst ratings, making them attractive long-term investment options.

In the first half of 2025, Berkshire Hathaway's top dividend stocks have shown impressive performance, beating the S&P 500 index. Coca-Cola Company (KO), Procter & Gamble (PG), and PepsiCo (PEP) have emerged as standout performers, offering attractive yields and strong analyst ratings.

Coca-Cola Company (KO)
Coca-Cola Company has been a top performer with a 3.4% yield, a 21.3% YTD return, and a strong buy rating from analysts. The company's consistent dividend growth and strong brand presence have contributed to its robust performance. Despite recent market volatility, Coca-Cola has maintained its position as a reliable dividend stock [1].

Procter & Gamble (PG)
Procter & Gamble, another Berkshire Hathaway favorite, has seen a significant increase in its stock price, with a yield of over 2.6% and a positive YTD return. The company's diversified product portfolio and strong market position have helped it navigate economic challenges effectively. Although Procter & Gamble was recently downgraded by JPMorgan to a Neutral rating ahead of its Q4 earnings report, analysts still view it positively for long-term growth [2].

PepsiCo (PEP)
PepsiCo has also been a strong performer, with a yield over 2.6% and a positive YTD return. The company's diverse portfolio of food and beverage brands has provided resilience during market fluctuations. PepsiCo's focus on innovation and sustainability has positioned it well for future growth.

These stocks have not only outperformed the S&P 500 but also received strong analyst ratings, making them attractive long-term investment options. Berkshire Hathaway's inclusion of these stocks in its portfolio underscores their potential for steady returns and dividend growth.

References:
[1] https://seekingalpha.com/news/4472114-procter-gamble-is-downgraded-by-jpmorgan-just-ahead-of-earnings
[2] https://finance.yahoo.com/news/buy-berkshire-hathaway-while-below-114000354.html

Warren Buffett's Top 3 Dividend Stocks Outperforming the Market in 2025

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