3 Warren Buffett Strong Buy Dividend Stocks Post Blow-Out Results For Q3
If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For 60 years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal investor fans. They were stunned at this year’s meeting when Mr. Buffett announced that he would be stepping down as CEO of the investment giant at the end of the year. While he will remain Chairman of the Board 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.
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As Mr. Buffett prepares to conclude his tenure as CEO, Berkshire Hathaway stocks are off to a good Q3 earnings season.
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Financials are always the first to report each earnings season, and started the Q3 results blowing away analysts expectations.
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Despite stepping down as CEO, Mr. Buffett will still be part of the investment process at Berkshire Hathaway.
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Warren Buffett remains one of the world’s most prominent investors, renowned for his long-term buy-and-hold strategies and extensive portfolio of public and private holdings. With interest rates poised to decline, it makes sense to consider adding Warren Buffett’s dividend-paying stocks, which are expected to rally as bond yields fall. Since Berkshire Hathaway (NYSE: BRK-B) has prominent positions in the financial sector, three have already delivered outstanding results for the third quarter, and they remain exceptional buy-and-hold stocks for growth and income investors. In addition, all are Buy-rated at top Wall Street firms.
There are few investors with the results and reputation that Mr. Buffett has garnered over the last 60 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.
The former GMAC posted strong results for the quarter and offers investors a solid 3.02% dividend. Ally Financial Inc. (NYSE: ALLY) is a financial services company that posted adjusted earnings per share of $1.15, significantly beating the analyst consensus of $1.00. Revenue for the quarter reached $2.17 billion, beating estimates of $2.12 billion. Adjusted earnings more than doubled from $0.43 per share in the same quarter last year.
The Company’s segments include:
The Automotive Finance operations segment is engaged in providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities.
Its Insurance operations segment operates as a complementary automotive-focused business, offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers.
The Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans to U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors.
Ally Financial also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies.
Citigroup has a Buy rating with a giant $70 target price.
American Express Company is an American bank holding company and multinational financial services corporation specializing in payment cards. This stock has been strong in 2025 and pays a 0.92% dividend. American Express Company (NYSE: AXP) is a globally integrated payments company that deals with card-issuing, merchant-acquiring, and card network businesses.
The financial giant posted earnings per share of $4.14, exceeding analyst expectations of $3.99, representing a 19% year-over-year increase. Revenue grew 11% to $18.43 billion, surpassing forecasts of $18.05 billion as net income of $2.9 billion was up 16% compared to last year.
The company offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations.
Its segments include:
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U.S. Consumer Services (USCS)
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Commercial Services (CS)
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International Card Services (ICS)
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Global Merchant and Network Services (GMNS)
USCS offers travel and lifestyle services and 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.
Berkshire Hathaway owns 151,610,700 shares, 21.6 % of American Express’s float, and 15.5% of the portfolio.
Keefe, Bruyette, and Woods has an Outperform rating with a $394 target price objective.
While Warren Buffett has trimmed his position over the last two years, this quality financial giant is an exceptional long-term holding with a solid 2.03% dividend. Bank of America Corporation (NYSE: BAC) is a bank holding company and a financial holding company that posted huge Q3 results. Earnings per share of $1.06 vs. $0.95, as revenue of $28.24 billion vs. $27.5 billion beat analysts’ estimates. Profit rose 23% from a year earlier to $8.5 billion, and revenue grew 11% year-over-year, with EPS jumping 31%
Its segments include:
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.
Morgan Stanley has an Overweight rating to go with a $67 target price.
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