The 7 Best Warren Buffett Stocks to Buy for August 2023

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  • Ride the bull with seven of Warren Buffett’s Top Picks
  • Coca-Cola (KO): With a 60+ year dividend growth, second-quarter sales rising 6%, and Warren Buffett’s $24.3 billion backing, Coca-Cola remains a drink of choice for investors.
  • Occidental Petroleum (OXY): Touting Buffett’s $13 billion endorsement and boasting an enticing 7.35% yield, Occidental’s stability is second to few.
  • Bank of America (BAC): Bank of America outperformed with an EPS of 88 cents in its most recent quarter, complemented by Buffett’s assertive $32.3 billion stake.
  • Apple (AAPL): Beyond the iPhone’s impressive $39.7 billion sales, Apple’s 1 billion-plus active subscriptions and its lion’s share in Berkshire’s portfolio highlight its unmatched supremacy.
  • Chevron (CVX): Underscored by a 37-year dividend growth streak and Berkshire’s $21.1 billion stake, Chevron’s financial performance signals resiliency.
  • Visa (V): Dominating transactions globally, Visa’s consistent dividend hikes and Buffett’s $1.98 billion stake echo an unwavering vote of confidence in its financial acumen.
  • Johnson & Johnson (JNJ): J&J’s 61-year streak of dividend increases and its robust 6.4% YoY sales growth illuminate its prowess in healthcare.

Amid the ripples of a burgeoning bull market, one name consistently captures the imagination of investors: Warren Buffett. Warren Buffet’s top picks, nestled within Berkshire Hathaway (BRK-ABRK-B) sprawling $382 billion portfolio, serve as a lodestar for those looking to grow their portfolios rapidly.

Since taking the reins in 1965, CEO he has meticulously curated a stock collection underpinned by robust dividend growth. I

t’s a testament to his unparalleled prowess in the realm of finance. Nevertheless, investors must understand that not all Warren Buffet’s top picks share the same luster.

Some shine a much brighter, setting them apart as the best Warren Buffett stocks. As we delve deeper, we’ll uncover seven of these gems, offering insights into the meticulous strategy of a man who remains unmatched in his investment acumen.

Coca-Cola (KO)

coca-cola bottles and cans. coke is a blue-chip stocks
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Coca-Cola (NYSE:KO) emerges as one of Warren Buffet’s top picks amidst the current volatility in the market.

Not only has the beverage behemoth upheld a remarkable dividend growth streak for more than 60 years, but its recent second-quarter earnings radiate robustness despite the headwinds. Sales witnessed a hearty 6% spike, with organic sales leaping to a commendable 11%.

Its strong showing compelled the firm to elevate its full-year forecast for organic revenue growth from 7% to 8% to a remarkably 8% to 9%.

Inflationary winds haven’t dampened consumers’ thirst for Coca-Cola’s powerful offerings. Boasting a portfolio of more than 200 resilient brands, the firm’s global sales fountain shows no sign of drying up.

When investment oracle Warren Buffett earmarks roughly 7% of his portfolio to Coca-Cola, with a staggering $24.3 billion holding value, it’s a tacit nod to the brand’s unyielding stature in the global marketplace.

Occidental Petroleum (OXY)

Person holding cellphone with logo of American company Occidental Petroleum Corp. (OXY) on screen in front of website. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

In the whirlwind dynamics of global energy markets, Occidental Petroleum (NYSE:OXY) has effectively managed to hold its ground, delivering relatively stable returns. That’s what makes it one of Warren Buffet’s top picks.

As a testament to his faith in Occidental, Buffett has plunged deep and owns almost a quarter of the company, valuing his investment at an incredible $13 billion.

Buffett’s optimism stretches beyond just numbers. Earlier this year, he praised the firm’s leadership, emphasizing their strategic acumen.

He said in a shareholder meeting in May that OXY has “the right management running it.” Hence, for those with an eye for value investing, The company’s enticing total yield of 7.35% should be hard to overlook, given it trades at just 1.9 times forward sales estimates.

Plus, with low break-even assets and an impressive $9.29 free cash flow per share, Occidental remains poised for long-term prosperity, even amid fluctuating oil prices.

Bank of America (BAC)

As It Tests Support, Bank of America Stock Provides a Trading Opportunity
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As the financial sector paints a rather gloomy picture this year, Bank of America (NYSE:BAC) stands out from its peers.

America’s second-largest lender turned heads recently, outperforming across both lines. It reported impressive earnings-per-share of 88 cents, surpassing the anticipated 84 cents, and revenue of $25.3 billion, edging out the predicted $25.05 billion while demonstrating the bank’s formidable resilience and prowess.

A significant factor propelling Bank of America’s robust financials is the uptick in interest rates on both commercial and consumer loans.

While there has been a remarkable deceleration in loan and deposit growth, mainly due to the tempering U.S. economy in the face of rising interest rates, the long-term horizon appears promising for the banking giant.

Warren Buffett’s substantial stake in the bank echoes this sentiment. Owning a whopping 1.03 billion shares with a current valuation of $32.3 billion represents an assertive 9.31% of his portfolio.

Apple (AAPL)

Apple (AAPL) logo brand and text sign on entrance facade store American multinational boutique corporation dealership shop. Apple Layoffs
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In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally.

The Cupertino colossus delivered an earnings beat in its most recent quarter. While Wall Street was eyeing earnings of $1.18 per share on sales of $81.8 billion, Apple subtly outperformed. The firm’s declaration of a 24-cent dividend stays consistent with its previous payout, underscoring its stability.

Diving deeper into the figures, the iconic iPhone raked in a staggering $39.7 billion, while the iPad and the Services segment clocked in revenues of $5.8 billion and $21.2 billion, respectively.

Accentuating Apple’s digital dominance, CEO Tim Cook highlighted how the firm now boasts over 1 billion active subscriptions.

Further endorsing Apple’s undying allure in the investment sphere, Berkshire Hathaway displays unwavering faith in the tech behemoth. Apple constitutes a hefty 49.27% of Berkshire’s equity portfolio, rendering it the conglomerate’s crown jewel.

Chevron (CVX)

CVX stock
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Chevron (NYSE:CVX) stands out from the pack with its immense stature in the hydrocarbon sphere, a darling of income stock investors.

Boasting a forward yield of over 3.8% paired with a sustainable payout ratio of 36%, it boasts a commendable record of 37 straight years of dividend growth.

Despite a slight contraction in its second-quarter net income and sales year-over-year, Chevron outpaced analyst predictions, solidifying its standing in its sector.

While the burgeoning electric vehicle market might have dimmed Chevron’s spotlight somewhat, a wider lens underscores the company’s enduring relevance in the energy landscape.

Berkshire’s acquisition of 132 million shares in Chevron further cemented the firm’s relevance, amounting to a hefty $21.1 billion. Such a significant stake is a ringing endorsement of Chevron’s unyielding prominence in the investment realm.

Visa (V)

several Visa branded credit cards
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In an era where global transactions seamlessly transcend borders, companies such as Visa (NYSE:V) have cemented their position as indispensable financial juggernauts. This ubiquity offers them enviable profit margins and powerful network effects.

With Visa’s emblematic blue, white, and gold logo seen in countless corners of the globe, it’s evident that they dominate the transaction terrain.

The company’s trajectory has hit a promising stride of late, with global travel volumes surging to unprecedented highs. Financially speaking, the company is on sturdy ground, with both its revenue and profit charts showcasing double-digit expansion, comfortably blowing past its historical averages.

Let’s not overlook its consistency in rewarding investors: for 14 consecutive years, Visa has augmented its dividend, currently yielding close to 1%.

This financial prowess hasn’t eluded the discerning eyes of Warren Buffett. His stake in Visa, 8.3 million worth $1.98 billion, may represent a modest 0.57% of Berkshire Hathaway’s portfolio, but it undeniably signals confidence in the payment giant’s lasting influence.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
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Johnson & Johnson (NYSE:JNJ) is a beacon of consistency and growth in the vast pharmaceutical and consumer goods arena.

It posted its earnings results last month, marking another quarter where it surpassed both top and bottom-line expectations. Yet, intriguingly, the stock’s subdued reaction indicated investor apprehension.

Analysts project a steady mid-single-digit revenue growth for this year and the next. It should also have an earnings uptick between 5% and 6%.

A salient feature of J&J’s financial profile is its dividend yield, currently at 2.80% and an unparalleled track record of hiking dividends for 61 years straight. The recent earnings announcement highlighted a robust 6.4% year-over-year sales growth, outperforming revenue estimates by $860 million.

Though Buffett’s stake in Johnson & Johnson is relatively modest, with 327 thousand shares valued at $55.3 million, it’s still a testament to the company’s enduring appeal in the investment world.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/08/the-7-best-warren-buffett-stocks-to-buy-for-august-2023/.

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