Warren Buffett's Berkshire Holds These 2 High-Yield Dividend Stocks — And You Can Too

Zinger Key Points
  • Coca-Cola has a dividend king track record of increasing its dividends for 60 years.
  • Throughout the second quarter, Warren Buffett reduced his position in the U.S. Bancorp by roughly 6.6 million shares.
Warren Buffett's Berkshire Holds These 2 High-Yield Dividend Stocks — And You Can Too

Long before becoming the “Oracle of Omaha,” six-year-old Warren Buffett was an entrepreneur selling sticks of gum and Coca-Cola to earn money.

By the time Buffett turned 11 years old, he opened his first position paying $114.75 for Cities Service, a natural gas company founded in 1910. The company no longer exists, as it was purchased by Occidental Petroleum OXY in 1982.

But, if the position from when Buffett was 11 was still in Berkshire Hathaway Inc (NYSE: BRK-A) as of January 2019, the investment would be worth $606,611 pre-tax, according to CNBC.

Though there may not be enough time in the day to sell Coca-Cola on the side, investing in it and another high-yield dividend company Buffett holds could earn some money.

Coca-Cola Co KO is offering a dividend yield of 2.82% or $1.76 per share annually, making quarterly payments, with a dividend king track record of increasing its dividends for 60 years.

Coca-Cola is the largest nonalcoholic beverage entity in the world, owning and marketing some of the leading carbonated beverage brands such as Coke, Fanta, and Sprite, as well as non-sparkling brands Minute Maid, Georgia Coffee, Costa and Glaceau. The company has also been dipping its toe into the alcohol beverage area with Jack Daniel's & Coca-Cola. 

After the first quarter, Buffett held his position in Coca-Cola stock owning 400 million shares, becoming the third most-owned position in Berkshire Hathaway, accounting for 8.4% of the total portfolio.

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U.S. Bancorp USB is offering a dividend yield of 4.00% or $1.84 per share annually, through quarterly payments, with a strong track record of increasing its dividends for 10 years.

U.S. Bancorp is one of the nation's largest regional banks, with branches in well over 20 states, primarily in the West and Midwest in the U.S., as of 2021.

Throughout the second quarter, Buffett reduced his position in the U.S. Bancorp by roughly 6.6 million shares, now accounting for 1.8% of Berkshire's total portfolio or over 119.8 million shares owned.

As short-term yields are rising with the 2-year treasury yield at 3.766%, this will raise the borrowing costs for banks aiming to issue loans. 

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