The inflation has been inflated and investors have become overly cautious. Hikes in interest rates by the Federal Reserve has added fuel to fire. The economic outlook has now turned uncertain. The war between Russia and Ukraine has further deteriorated the confidence level of market participants. The recent growth stocks have lost value.
However, Berkshire Hathaway chief Warren Buffett has emerged differently. He is the most successful and popular value investor in recent history. His stocks are usually witnessed as high-quality investments during such defense-playing situations. Some of the stocks are even paying dividends.
Shares of Store Capital Corp have been down by 13.8 percent this year but the dividend yield is as much as 5.2 percent, which is the highest among all the stocks owned currently owned by Buffett. A significant portion of the income of the store comes from health clubs, restaurants and movie theaters. These segments have rebounded strongly in 2022.
Buffett started investing in the company in 2017 and he now holds 24.4 million shares that is worth over $722.4 million.
Verizon Communications is another high dividend yield and Buffett holds 158.8 million shares of it which is worth over $8.6 billion. It has gained 4.5 percent so far this year. It has a stable business equipped with good valuation and high margins. These aspects were mainly the point of attraction to invest.
Buffett has a good stake in Kraft Heinz, which is one of the most popular brands in beverages and packaged food in the world. The company has gained 16.6 percent so far in 2022 and it has paid a dividend of 3.8 percent.
Berkshire started investing in Kraft Heinz in 2015 and holds 325.6 million shares of it which is worth over $13.5 billion.
Buffett further has stakes in US Bancorp, AbbVie and a couple of more high valuation companies.