Why Warren Buffett’s Highest-Yielding Berkshire Hathaway Stocks Are Contrarian Gold

Warren Buffett stepped down as CEO of Berkshire Hathaway (NYSE: BRK-B) on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: more than 65% of Berkshire’s $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as chief executive on January 1, 2026. At 95 years old, Buffett isn’t fully retiring—he will remain board chair and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be “going quiet” and leaving all decision-making to Abel.

• Berkshire Hathaway has underperformed the S&P 500 so far this year.

• Buying the highest-yielding stocks in the Berkshire Hathaway portfolio could be the best contrarian trade for 2026.

• With interest rates likely holding steady for much of the rest of 2026, high-yielding stocks remain a great investment idea.

• The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

Given that the Berkshire Hathaway portfolio is the epitome of a “buy and hold” strategy, it makes sense for investors to review the stocks it holds and identify which are currently the highest yielding. One is a consumer staples giant that may eventually cut its dividend, but could be a contrarian home run if it doesn’t. Another is one of the world’s largest alcoholic beverage companies, and in an age when Gen Z has cut its alcohol intake in a big way, it could also be a contrarian winner this year.

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Few investors have the results and reputation that Buffett has garnered over the past 60 years. Though he has stepped away from the CEO chair, his impact and investment guidelines are likely to remain in place long after he is gone. While investing has evolved since Buffett took control of Berkshire Hathaway in 1965, buying good companies with products and services recognized worldwide and paying dividends will always remain a timeless approach and never go out of style.

Kraft Heinz (NYSE: KHC) is North America’s third-largest food and beverage company and fifth-largest globally. Even in difficult times, everybody needs to eat, and this company consistently benefits while paying a substantial 7.20% dividend. The company was formed via the merger of H.J. Heinz and Kraft Foods, and it manufactures and markets food and beverage products worldwide through its eight consumer-driven product platforms:

The company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and reported as Emerging Markets.

Kraft Heinz brands include:

• Kraft

• Oscar Mayer

• Heinz

• Philadelphia

• Lunchables

• Velveeta

• Ore-Ida

• Capri Sun

• Maxwell House

• Kool-Aid

• Jell-O

• Golden Circle

• Wattie’s

• Plasmon

• ABC

• Master

• Quero

• Pudliszki

The company manufactures its products from a wide variety of raw materials, and its products are sold through its sales organizations and independent brokers, agents, and distributors.

In February 2026, Kraft Heinz scrapped its planned corporate split. New CEO Steve Cahillane cited worsening conditions in the food industry, while emphasizing that the company’s challenges are “fixable and within our control.”  Rather than breaking up, the company is intensifying its turnaround efforts. It is committing $600 million to marketing, sales, and research and development to drive the strategy. The decision follows a 3.5% decline in net sales in 2025, with further declines expected in 2026. By canceling the split, Kraft Heinz is now fully focused on stabilizing and rebuilding the business. Abel indicated Berkshire Hathaway is no longer planning to sell its stake in Kraft Heinz.

The swift reversal is being viewed as a reflection of Abel’s more hands-on management approach, as he reportedly expressed dissatisfaction, prompting the company to change direction quickly. For now, Berkshire appears committed to holding its position, although the registered shares could still be sold if conditions shift. If they don’t, and the transition is successful, this could be a contrarian home run.

One of the strongest companies in a very competitive industry, shareholders will gladly accept a 4.59% dividend payout. Lamar Advertising (NASDAQ: LAMR) is an outdoor advertising company with over 363,000 displays across the United States and Canada.

The company offers advertisers a variety of billboard, interstate, transit, and airport advertising formats. It offers its customers a network of digital billboards in the United States with approximately 5,100 displays. Lamar Advertising operates three types of outdoor advertising displays:

Under Billboards, it rents most of its advertising space on two types: bulletins and posters. In addition to traditional billboards, it rents space on digital billboards located on major traffic arteries and city streets. Under Logo signs, it rents advertising space on logo signs located near highway exits. The Transit advertising displays rent advertising space on the exteriors and interiors of public vehicles, in airport terminals, and on transit shelters and benches.

Diageo (NYSE: DEO) is a British multinational alcoholic beverage company headquartered in London. This company is one of the world’s largest producers of alcoholic beverages, it markets and sells alcoholic beverages worldwide, and it pays a solid dividend of 4.07%. While alcohol consumption has dropped among younger consumers, a pivot to the products they do enjoy could help this top company regain its footing.

Diageo offers:

• Scotch whiskey, gin, vodka, rum, beer, and spirits

• Irish cream liqueurs

• Wine, raki, tequila, Canadian and American whiskey

• Cachaça and brandy, as well as adult beverages and ready-to-drink products

The company’s premium brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Its reserve brands include:

• Johnnie Walker Blue Label

• Johnnie Walker Green Label

• Johnnie Walker Gold Label 18-year-old

• Johnnie Walker Gold Label Reserve

• Johnnie Walker Platinum Label 18-year-old

• John Walker & Sons Collection

• Johnnie Walker The Gold Route

• Johnnie Walker The Royal Route

The Johnnie Walker super premium brands include The Singleton, Cardhu, Talisker, and Lagavulin.

The satellite radio was first added to the Berkshire Hathaway portfolio in 2016, and Buffett has continued to increase his stake over the past few years, which has proven to be genius. Sirius XM (NASDAQ: SIRI) is an audio entertainment company in North America that pays shareholders a dividend yield of 3.97%.

The company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions.

The Sirius XM segment offers a variety of content, including music, sports, entertainment, comedy, talk, news, traffic, and other channels, as well as podcasts and infotainment services, in the United States for a subscription-based fee. Sirius XM’s packages include live, curated, and specific exclusive and on-demand programming.

The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener, wherever and whenever they want to listen, across mobile devices, vehicle speakers, and connected devices.

Chevron (NYSE: CVX) is an American multinational energy company primarily focused on oil and gas, and it has been on fire as oil prices have skyrocketed. This integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial 3.70% dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide. Berkshire Hathaway bought a very well-timed 8 million additional shares in the fourth quarter and now owns 130,156,362 shares, which equals 6.5% of the float and 8.0% of the portfolio.

The company operates in two segments. The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas

• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas

• Transportation of crude oil through pipelines, and transportation, storage

• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products

• Marketing crude oil, refined products, and lubricants

• Manufacturing and marketing renewable fuels

• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car

• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

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