Worried Investors Should Buy Warren Buffett’s Dividend Safety Stocks

The 10-year Treasury note was trading at a 4.75% yield in January and is now at a 4.09%. Treasury yields go down as prices are bid higher. Consumer spending, while solid, is slowing, as tariffs are being imposed worldwide. The United States is finally responding to tariffs imposed upon it, and a host of additional factors are fanning the flames of another 2025 correction. Job gains have plummeted, as much of the data is perceived to be inaccurate. To be frank, it is high time that a correction similar to the one earlier this year comes in to help cleanse the market of the recklessness ignited by artificial intelligence almost three years ago. While the AI revolution is for real, countless companies that generate no revenue but make big promises are similar to the dot-com failures resting quietly in the Wall Street graveyard.

24/7 Wall St. Key Points:

• After a 30% run off the lows in April, the market looks like it needs a breather.

• Warren Buffett remains very cautious and still has a massive $344 billion in cash, which has doubled since 2024.

• If inflation drifts higher, investor hopes for three or four interest rate cuts over the next year seem unlikely.

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Long-time investors and Warren Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever.” So it’s not surprising to report that for all the success and stature Berkshire Hathaway has in the investment world, five top companies make up almost 67% of the fund’s total holdings. While much more concentrated than most portfolio managers would consider, the strategy has worked well for Berkshire Hathaway investors for years and is likely to continue doing so.

Given his apparent concern about the stock market now and his substantial cash and T-bill holdings, it makes sense for investors to consider buying some of the most conservative stocks in the Berkshire Hathaway portfolio. Four companies appear to be very safe investments for now, and all are rated Buy by the top firms on Wall Street that we cover.

Why do we cover Warren Buffett’s stocks?

There are few investors with the results and reputation that Mr. Buffett has garnered over the past 50 years. While investing has changed over the past half-century, buying good companies with products and services known worldwide, while paying dividends, will always remain in style.

Chevron

This American multinational energy company predominantly specializes in oil and gas. It is a safer option for investors looking to position themselves in the energy sector and pays a substantial dividend, which was raised by 5% earlier this year. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through 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.

Chevron announced in late 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this fall.

UBS has a Buy rating with a huge $197 target price.

Coca-Cola

This American multinational corporation was founded in 1892. Coca-Cola Co. (NYSE: KO) remains a top long-time holding of Buffett. He owns a massive 400 million shares that are up a solid 11% in 2025. It is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

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 top 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.

It is also important to 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 $80.

Domino’s Pizza

This American multinational pizza restaurant chain was founded in 1960. Buffett initially bought this stock in 2024 and has continued to add to the stake. As of late June 2025, Berkshire owned 2.63 million shares of Domino’s Pizza Inc. (NASDAQ: DPZ), which equals a 7.63% stake in the company with a value exceeding $1.1 billion. The pizza giant pays a dividend of 1.41%, and it operates a significant business in both delivery and carryout pizza.

The company operates through three segments:

• The U.S. Stores segment primarily comprises franchise operations, which consist of franchised stores located in the United States. The segment also operates a network of company-owned stores in the United States.

• The International Franchise segment primarily includes operations related to the Company’s franchising business in foreign markets.

• The Supply Chain segment primarily includes distributing food, equipment, and supplies to stores from the Company’s supply chain center operations in the United States and Canada. Its Pinpoint Delivery technology enables customers to receive deliveries nearly anywhere, including parks, baseball fields, and beaches.

Domino’s Pizza is a publicly traded restaurant brand with a global network of over 20,500 stores in more than 90 countries.

Loop Capital has a Buy rating with a $574 target price.

Kroger

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

Its combination of food and drug stores offers:

• 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; it sells fuel through 1,613 fuel centers.

 Jefferies has a Buy rating on this Buffett pick, along with an $83 price objective.

Four Stocks That Yield 12% and Higher Are Passive Income Kings

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