Warren Buffett’s 52% Portfolio Rests on These Three Dividend Giants

A globally recognized investor, Warren Buffett is one of the greatest investors of all time. He identifies stocks at the right time, and his investments have paid off for years. While it can be interesting to follow his decisions, you must be cautious when you mimic a billionaire’s moves. Based on the recent 13F filing, we’ve noticed Berkshire Hathaway Inc. (NYSE: BRK-B) make significant moves in the third quarter. While the investor owns several artificial intelligence (AI) stocks, he also focuses on dividend-paying stocks. Apple (NASDAQ:AAPL), American Express (NYSE:AXP), and Bank of America (NYSE: BAC) form 52% of his portfolio, and here’s why I think they’re an excellent buy. 

Apple – 22.69% of the portfolio 

Apple continues to remain the largest holding of Berkshire Hathaway at 22.69% of the portfolio. The iPhone maker was considered to be making little progress as compared to its peers, but the company has reported impressive quarterly results and growing product demand. The company added new AI features to the latest iPhone model, which are seeing strong demand. Besides the growing iPhone sales, the company has also seen an improvement in service revenue. 

The stock has gained 14.35% in 2025 and is exchanging hands for $278.85. It is very close to the 52-week high of $280. Apple has a dividend yield of 0.37%, and while it isn’t a high yield, the company has the ability to increase the dividends in the coming years. Apple has increased dividends for 12 consecutive years and pays an annual dividend of $1.04 per share. The tech giant has a payout ratio of 13.65%, which means there’s a strong chance of higher dividends in the long term. 

In the recently announced fourth-quarter results, Apple reported a revenue of $102.5 billion, up 8% year-over-year, a record revenue for the quarter, and an all-time revenue record for services. Its EPS stood at $1.85, up 13% year-over-year, while the services revenue came in at $28.75 billion. Its iPhone segment continued to remain a growth driver with a revenue of $49.03 billion. This was the best quarter ever in the history of the company. Apple is strained on several models of iPhone 17, which means we could see another blowout quarter. 

American Express- 18.84% of the portfolio

Fintech company American Express holds the second largest position in Buffett’s portfolio at 18.84%. It is a card issuer and payment processor that generates revenue through transaction fees and interest payments. This ensures that it manages the income stream despite economic ups and downs. 

The company has a loyal customer base, a strong industry presence, and services that are hard to replace. American Express enjoys the loyalty of its customers, which has allowed it to raise annual fees while maintaining profitability. It is attracting millennials and Gen Z customers through its premium offerings. The company has benefitted from the increased spending on the cards across all its products. The numbers speak for themselves. 

In the third quarter, it saw an 11% jump in revenue to $18.4 billion and a 16% jump in profits to $2.9 billion, driven by affluent customers. The growth was driven by international card services, which saw a 13% year-over-year rise, while the total card member spending jumped 9% year over year. It reported an EPS of $4.14. The strong quarter led the management to raise its full-year guidance and is now aiming for a revenue growth of 9% to 10% and an EPS of $15.20 to $15.50. 

Up 22.40%, American Express stock is exchanging hands for $365.27 and has a dividend yield of 0.90%. It pays an annual dividend of $3.28 per share and has a payout ratio of 21.21%. The company has grown dividends for 4 consecutive years. American Express has never cut its dividend and has continued to reward shareholders even during periods of financial crisis. 

American Express has a resilient customer base, and its rally might not end anytime soon. It is one of the safer stocks to own during economic uncertainty. 

Bank of America- 10.96% of the portfolio

Another financial company in Berkshire’s portfolio, Bank of America, forms 10.96% of the total holdings. It owns over 568 million shares of the company. Berkshire began purchasing shares of Bank of America in 2020 and has steadily added to them. However, the hedge fund has also trimmed its share in the company and reduced it by 45%. Despite the sale, it still represents a sizeable chunk of the total portfolio. 

One of the largest financial institutions in the world, Bank of America is the most durable business around. In the third quarter, it reported a revenue of $28.1 billion, up 11% year over year. It reported a net income of $8.5 billion and added an impressive 212,000 net new consumer checking accounts.

The Federal Reserve is cutting the benchmark interest rate, and with more cuts on the horizon, the borrowing costs could lower. This will mean higher revenue for the bank. Bank of America has a yield of 2.09% and has raised dividends for 11 years. It pays an annual dividend of $1.12 per share and has a payout ratio of 28.88%. 

The risk-reward profile of Bank of America is favorable for investors. The financial institution is in a place to benefit from lower interest rates, growing consumer accounts, and a higher net income.