4 of Warren Buffett’s Favorite Dividend Stocks Posted Incredible Q2 Results

If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual investors’ meeting at Berkshire Hathaway Inc. (NYSE: BRK-B) draws thousands of loyal fans who are also. They were stunned at this year’s meeting when Buffett announced that he would be stepping down as chief executive of the investment giant at the end of the year. While he will remain as board chair and continue to have a voice in the day-to-day operations, his pre-announced successor, Greg Abel, will assume the CEO position at the end of the year.

24/7 Wall St. Key Points:

• Second-quarter results are all but in as the third quarter is coming to an end. But three of Warren Buffett’s favorite dividend stocks posted incredible results for Q2.

• With interest rate cuts all but guaranteed, top Buffett dividend stocks should get a strong tailwind.

• Berkshire Hathaway has lagged the S&P 500 this year and could be offering solid entry point for investors.

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Long-time investors and Buffett mavens are familiar with this quote: “His favorite holding for an S&P 500 stock is forever.” So it is not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, just five top companies make up almost 70% of the fund’s total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years. It is likely to continue doing so in the future. We reviewed the holdings, looking for companies that posted the best second-quarter results, and four of Buffett’s favorite dividend stocks were the hands-down winners. All are rated Buy at the top Wall Street firms we cover on Wall Street.

Why do we cover Warren Buffett’s stocks?

There are few investors with the results and reputation that Mr. Buffett has garnered over the last 50 years. While investing has evolved over the past half-century, buying good companies with products and services recognized worldwide, while paying dividends, will always remain a timeless approach. With a 15-year track record of covering Mr. Buffett and Berkshire Hathaway at 24/7 Wall St., we must keep our readers abreast of the financial powerhouse’s latest news. Many of our readers either own the shares or are considering a purchase, so it’s good to keep them updated regularly.

American Express

American Express Co. (NYSE: AXP) is an American bank holding company and multinational financial services corporation specializing in payment cards. This stock has been strong and pays a 0.92% dividend. American Express is a globally integrated payments company that deals with card-issuing, merchant-acquiring, and card network businesses.

The company reported earnings per share (EPS) of $4.08, surpassing analysts’ consensus estimates of $3.86, representing a 5.7% surprise. Adjusted EPS, excluding a prior-year gain, rose 17% year-over-year, with record-high revenue of $17.9 billion, up 9% from the previous year.

It offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations. Its segments include:

• U.S. Consumer Services (USCS)

• Commercial Services (CS)

• International Card Services (ICS)

• Global Merchant and Network Services (GMNS)

USCS offers travel and lifestyle services, as well as banking and non-card financing products.

CS offers payment, expense management, banking, and non-card financing products.

ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business.

GMNS operates a payments network that processes and settles card transactions, acquires merchants, and provides multichannel marketing programs, capabilities, services, and data analytics.

Wells Fargo has an Overweight rating with a $275 target price.

Bank of America

While Buffett has trimmed his Bank of America Corp. (NYSE: BAC) position over the past two years, this quality financial giant is a solid long-term holding. It is a bank holding company and a financial holding company that pays a 2.07% dividend. The company posted Q2 earnings on July 16, 2025, with an EPS of $0.89, surpassing estimates by $0.03. Results were mixed, but the earnings beat reflects solid performance in a challenging environment.

Its segments include:

• Consumer Banking

• Global Wealth & Investment Management (GWIM)

• Global Banking

• Global Markets

Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.

The GWIM comprises two businesses: Merrill Wealth Management, which offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products.

Bank of America Private Bank provides comprehensive wealth management solutions.

The Global Banking segment offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.

The Global Markets segment offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets.

Oppenheimer has a Buy rating and a $57 target price on the stock.

Coca-Cola

The Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Buffett, as he owns a massive 400 million shares. The stock is up a solid 11% in 2025 and also comes with a reliable 2.93% dividend. The world’s largest beverage company offers consumers more than 500 sparkling and still brands.

The legacy giant reported earnings on July 22, 2025, with an adjusted EPS of $0.87, beating estimates by $0.03. Revenue grew 0.8% year-over-year to $12.5 billion, though it slightly missed estimates by $80 million.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke

• Coca-Cola Light

• Coca-Cola Zero Sugar

• Caffeine-free Diet Coke

• Cherry Coke

• Fanta Orange

• Fanta Zero Orange

• Fanta Zero Sugar

• Fanta Apple

• Sprite

• Sprite Zero Sugar

• Simply Orange

• Simply Apple

• Simply Grapefruit

• Fresca

• Schweppes

• Dasani

• Fuze Tea

• Glacéau Smartwater

• Glacéau Vitaminwater

• Gold Peak

• Ice Dew

• Powerade

• Topo Chico

• Minute Maid

Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day.

Remember that the company owns 16% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver strong financial results.

UBS has a Buy rating and a target price of $84.

Kroger

This American retail company operates supermarkets and multi-department stores throughout the United States. Kroger Co. (NYSE: KR) is a consistently solid and conservative investment with a 1.89% dividend. The grocery chain giant also operates combination food and drug stores, marketplace stores, and price-impact warehouses.

Kroger reported adjusted EPS of $1.04, which beat the Wall Street consensus estimate of $1.00 by $0.04. This compares to $0.93 in the same quarter last year. Total company sales were $33.94 billion, slightly below the consensus estimate of $34.1 billion but up 0.1% from $33.91 billion in the year-ago quarter. Excluding fuel and the sale of Kroger Specialty Pharmacy, sales increased 3.8%

Its combination of food and drug stores offer:

• Natural food and organic sections

• Pharmacies

• General Merchandise

• Pet centers

• Fresh seafood and organic produce

Multi-department stores offer:

• Apparel

• Home fashion and furnishings

• Outdoor living

• Electronics

• Automotive products

• Toys

The company’s marketplace stores offer:

• Full-service grocery, pharmacy, health, and beauty care

• Perishable goods, as well as general merchandise, including apparel, home goods, and toys

• Price-impact warehouse stores sell groceries, health and beauty care products, meat, dairy, baked goods, and fresh produce

The company also manufactures and processes food products in its supermarkets and online, and it sells fuel through 1,613 fuel centers.

 Jefferies has a Buy rating with an $83 target price.

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