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OPINION

3 High-Yielding Buffett Stocks for Income Investors

3 High-Yielding Buffett Stocks for Income Investors
A Bank of America branch in Boston. (Michael Dwyer/AP)

Bob Ciura By Wednesday, 10 September 2025 10:32 AM EDT Current | Bio | Archive

Warren Buffett is the Chairman and CEO of Berkshire Hathaway (BRK.A)(BRK.B). As of its most recent quarterly filing, Berkshire Hathaway had an equity investment portfolio worth approximately $258 billion.

Berkshire Hathaway’s portfolio is filled with quality stocks, many of which pay dividends to shareholders. Some have even paid rising dividends each year, for decades on end.

Income investors can find many quality dividend stocks among Berkshire’s portfolio.

This article will discuss 3 of the highest yielding Buffett stocks.

Bank of America Corporation (BAC)

  • Dividend Yield: 2.2%

Bank of America, headquartered in Charlotte, NC, provides traditional banking services, as well as non–banking financial services to customers all over the world. Its operations include Consumer Banking, Wealth & Investment Management and Global Banking & Markets.

Bank of America posted second quarter earnings on July 16th, 2025, and results were mixed. Earnings-per-share came to 89 cents, which was three cents ahead of estimates. Earnings were down from 90 cents in Q1, but higher from 83 cents in last year’s Q2. Revenue was up 4.2% year-over-year to $26.46 billion, but missed estimates by $270 million.

Net interest income was up for the fourth consecutive quarter, reflecting eight consecutive quarters of deposit growth and year-over-year loan growth of 7%. NII was $14.8 billion, slightly missing estimates, but up from $14.6 billion in Q1, and $13.9 billion a year ago. Noninterest income was $11.8 billion, down from $12.9 billion in Q1 and higher from $11.7 billion a year ago.

Bank of America remains highly focused on reducing spending where possible, and it has finally begun building its loan book. The company has almost one trillion dollars of deposits it has not lent out, and the bank is still lending cautiously despite relatively high interest rates. The bank has aggressively bought back shares in the past, which will help boost earnings-per-share.

Bank of America started to raise its dividend payout ratio several years ago, but the company still only pays out less than a third of its profits in the form of dividends. The dividend in its current state is still very safe.

The Coca-Cola Company (KO)

  • Dividend Yield: 3.0%

Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non–alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide.

Coca-Cola now has 30 billion-dollar brands in its portfolio, which each generate at least $1 billion in annual sales.

Coca-Cola posted second quarter earnings on July 22nd, 2025, and results were somewhat mixed. Adjusted earnings-per-share came to 87 cents, which was three cents ahead of estimates. Revenue was up 0.8% year-over-year to $12.5 billion, missing estimates by $80 million.

Organic revenue was up 5%, including 6% growth in pricing and mix, partially offset by a 1% decline in volumes. The company still expects to deliver 5% to 6% growth in organic revenue this year, unchanged from prior. Net revenue is expected to face a 1% to 2% headwind from currency impacts based on current positioning.

Sparkling soft drinks volume was off 1%, as Coca-Cola fell 1%. Coca-Cola Zero Sugar soared 14% as it grew in all geographic segments. Comparable operating margin expansion during the quarter was up to 37.1% of revenue, driven by organic growth, the timing of marketing investments, and effective cost management. Currency headwinds partially offset some of that.

KO has increased its dividend for 63 consecutive years.

Chevron Corporation (CVX)

  • Dividend Yield: 4.3%

Chevron is the fourth-largest oil major in the world based on market cap. Chevron prices some natural gas volumes based on the oil price, meaning nearly 75% of its output is priced based on the oil price. As a result, Chevron is more leveraged to the oil price than the other oil majors.

Chevron has increased its dividend for 38 consecutive years, placing it on the Dividend Aristocrats list.

In early August, Chevron reported (8/1/25) financial results for the second quarter of 2025. Production grew 4% over the prior year’s quarter, to a new all-time high, thanks to record output in the Permian basin after the acquisition of PDC Energy. However, the company was hurt by lower oil prices and higher depreciation and operating costs.

In addition, refining margins plunged to normal levels after two years of blowout levels. As a result, earnings-per-share fell -31%, from $2.55 to $1.77.

The price of oil has remained below $70 in recent months, as OPEC has begun to restore its output.

Chevron’s output dipped -3% in 2022 but it grew 4% in 2023 and 7% in 2024 thanks to sustained growth in the Permian Basin and the acquisition of PDC Energy. The company has more than doubled the value of its assets in the Permian in the last six years thanks to new discoveries and technological advances.

CVX has increased its dividend for 38 consecutive years.

Disclosure: No positions in any stocks mentioned

_______________

Bob Ciura
has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul.

© 2025 Newsmax Finance. All rights reserved.


BobCiura
Warren Buffett is the Chairman and CEO of Berkshire Hathaway. As of its most recent quarterly filing, Berkshire Hathaway had an equity investment portfolio worth approximately $258 billion.
high, yield, dividend, stocks, retirement, income
844
2025-32-10
Wednesday, 10 September 2025 10:32 AM
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