Warren Buffett has always had a fondness for stocks, but there are times when his interest wanes. Currently, he has been consistently selling off stocks for seven quarters in a row. In the second quarter of 2024, his company Berkshire Hathaway unloaded 11 stocks. Despite this, one of the stocks stands out as a solid pick for income investors.
Among the stocks Buffett sold in Q2, the most significant reduction was in Apple, which remains the largest holding in Berkshire’s portfolio. Additionally, Buffett decreased his positions in Bank of America, Capital One Financial, Chevron, Liberty Media Class A, Liberty Media Class C, Floor & Decor, Louisiana-Pacific, T-Mobile US, while completely exiting positions in Paramount Global and Snowflake.
For income investors, some of the stocks Berkshire sold may not be missed, as they do not offer dividends. However, there are a few with decent dividend yields. Capital One Financial, T-Mobile US, Paramount Global, and Bank of America offer attractive dividend yields ranging from 1.63% to 2.65%.
Chevron, on the other hand, offers a compelling forward dividend yield of 4.58%, making it a standout choice for income investors. With a history of increasing dividends for 37 consecutive years, Chevron’s acquisition of Hess could further boost its cash flow and dividend distributions in the future.
Despite Buffett’s reduced holdings in Chevron, the stock remains one of Berkshire’s top positions. With promising prospects and a high dividend yield, Chevron is a strong contender for income investors.
In conclusion, while Buffett may be scaling back on certain stocks, Chevron stands out as a top pick for income investors due to its attractive dividend yield and growth potential.