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Veteran American investor Warren Buffett mostly invests his money in large-cap and dividend-paying stocks. He has a diversified portfolio that includes stocks from sectors like technology, healthcare, telecom, consumer defensive, energy, etc.
If you are looking for a long-term investment, you can take inspiration from Mr Buffett’s portfolio. These stocks come with a likely lower risk, and most of them offer a pleasant dividend.
Here are five stocks from Mr Buffett’s portfolio that investors may want to pick and hold this year.
- The Kraft Heinz Company (KHC:US or NASDAQ: KHC)
The Kraft Heinz Company is the third largest food and beverages enterprise in North America. It has market cap* of US$ 47.84 billion and delivers a quarterly dividend of U$ 0.40 per stock. Its dividend yield* stands at 4.05 per cent.
The stock has fared well in the last one year, returning gains of 61.26 per cent. It posted its 52-week high of US$ 39.71 per share on Wednesday and has a steady growth of nearly 14 per cent this year.
In the fourth quarter of 2020, the company’s gross profit soared 19.7 per cent year-over-year (YoY).
- Apple Inc (AAPL:US or NASDAQ: AAPL)
One of the leading smartphones and digital accessories makers in the world, Apple ranks second on Mr Buffett’s portfolio. Its stock yielded 68.20 per cent in the last one year. The record US$ 2-trillion market cap company distributes a quarterly dividend of US$ 0.205 per share.
Apple stock currently has a price of almost US$ 120 per piece, compared with its 52-week high of US$ 145.09 (recorded on January 25, 2021). It has a return on equity of 82.09 per cent.
In the first fiscal of 2021, Apple registered a record revenue of US$ 111.4 billion, a surge of 21 per cent YoY. Its diluted earnings per share (EPS) was US$1.68, posting a rise of 35 percent YoY.
- AbbVie Inc (ABBV:US or NYSE: ABBV)
Drug manufacturer AbbVie Inc focuses on the oncology and immunology segments. Warren Buffett has added more stocks from this company after dumping Pfizer in the fourth quarter last year.
The healthcare stock has grown 23.31 per cent in the last one year and is paying a dividend of US$ 1.30 per share for the current quarter. It has a dividend yield* of 4.815 per cent.
Source: Kalkine Group @2021
The stock has rebounded by 72.66 per cent to US$ 108 per piece from its 52-week low of US$ 62.55 (COVID-led collapse on March 23, 2020).
In February, the firm received FDA approval for its HUMIRA® therapy for ulcerative colitis infection.
- Chevron Corporation (CVX:US & NYSE: CVX)
Chevron Corporation is the second largest oil and gas producer by volume in the US and is a new entrant to Mr Buffett’s investment kitty.
Its stock rose 31.05 per cent in the last one year, driven by the 31.87 per cent year-to-date (YTD) growth. It also crossed its 52-week high on Wednesday, March 10. The energy stock has been drawing more traction recently due to the oil price rally.
The company hiked its dividend in 2020 to record the 33rd consecutive year raise. It currently pays US$ 1.29 per stock, with a dividend yield* of 4.633 per cent.
- Verizon Communications Inc (VZ:US or NYSE: VZ)
Verizon Communications, which provides wireless services to 93 million phone users, is one of Warren Buffett’s top 10 picks.
The telecom stock is trading 3.2 per cent up month-to-date and has climbed by one per cent in the last one year. However, it has a return on equity of 27.55 per cent and a quarterly dividend of US$ 0.627 per common share.
In the fourth quarter of 2020, the 5G company’s total wireless service revenue was US$ 16.7 billion, up 2.2 per cent YoY.
