3 Warren Buffett Dividend Stocks Analysts Predict Will Grow By As Much As 19%

Warren Buffett, with a formidable net worth exceeding $130 billion, remains a titan of investment. His acumen for selecting robust stocks has cultivated decades of trust and admiration. As the financial markets continuously shift, his insights and strategic choices are closely watched, often setting trends and guiding investors towards promising opportunities.

The Oracle of Omaha has never preached risky investments but has always lauded the significance of high-quality dividend-paying stocks. “Beware the investment activity that produces applause; the great moves are usually greeted by yawns,” Buffett once said. 

As market volatility surges amid surmounting geopolitical tensions, analysts are betting Buffett's favorite dividend stocks will outperform in the near term. 

Coca-Cola

First up on Buffett’s roster of rock-solid investments is the iconic beverage behemoth Coca-Cola Company KO. Buffett has, time and again, credited Coca-Cola as his "crown jewel," as he draws millions in dividend payouts from his stake in the company. 

The investment guru's strategic investment of $1.3 billion in Coca-Cola back in 1994 has proven to be a lucrative move, as annual dividend payouts are now $776 million. Berkshire Hathaway’s stake in Coca-Cola, which was valued at over $23 billion as of the company’s latest 13F filing, showcases capital gains exceeding 1,700%. The stock pays $1.94 in dividends annually, yielding 3.29% on the current price. 

Analysts predict that Coca-Cola’s stock is primed for a substantial uptick, fueled by strong consumer demand and innovative marketing strategies that continue to captivate audiences worldwide. Both Barclays and JPMorgan & Chase have an "Overweight" rating on KO stock. Barclays has a price target of $68 on the stock, indicating a potential upside of nearly 13%, while JPMorgan analysts expect KO stock to rise to $65 in the near term, reflecting a roughly 8% potential upside. 

American Express

American Express Company AXP has been one of Buffett’s favorite stocks for a long time now, with the Oracle of Omaha's first investment in the company dating back to 1995. The financial services giant, known for its premium credit card offerings, currently pays $2.80 in dividends annually, yielding nearly 1.3% on its stock price. 

The Oracle of Omaha acquired this stake in the financial juggernaut for a whopping $1.3 billion back in 1995. The value of his stake now exceeds $28.4 billion, a testament to the enduring allure of this investment.

Buffett's stake in American Express accounts for a notable 6.7% slice of Berkshire Hathaway’s portfolio. Moreover, the dividends paid out by American Express are expected to exceed $424.5 million this year. 

Wells Fargo currently has an "Overweight" rating on AXP stock with a price target of $250, indicating a potential upside of over 7%.  

Visa

The third on the list is the global payments technology company Visa Inc. V. Buffett currently owns roughly 8.3 million shares of Visa, valued at approximately $2.16 billion. Visa stock gained nearly 19% over the past decade, outpacing the benchmark S&P 500 index's 10.4% returns over this period.  At this current price, Visa yields 0.77% with its quarterly payout of $0.52 per share.  

Analysts at Wells Fargo have endorsed a bullish outlook for Visa, rating it "Outperform" with a price target of $325. This signals a potential upside of over 19%. 

This projection is reinforced by Visa’s latest strategic move – the launch of Subscription Manager, designed to track all subscription payments. Amid the burgeoning subscription market, expected to reach $406 billion by 2025, Visa's latest product is expected to become groundbreaking, reinforcing its position as an industry-leading global payments technology company. 

Looking For an Income Play with Higher Yield?

Cityfunds has introduced an exclusive opportunity for accredited investors to secure an impressive 7% – 8% APY by capitalizing on the growing $32.6 trillion home equity market. The Cityfunds Yield fund provides quarterly distributions and is backed by a diversified portfolio of real estate assets, ensuring stable and robust cash flow with a commitment to safety and high returns.

Why the Yield Fund Stands Out

Cityfunds’ Yield fund targets an 8% annual payout with a guaranteed floor of 7%, significantly higher than many traditional investment options. The fund is backed by collateralized real estate loans and home-equity agreement-backed notes. With a redemption option post a 12-month lock-up and a five-year term, this fund not only offers excellent income potential but also provides the flexibility sophisticated investors seek.

Check out the Yield fund.

Cityfunds Available to Non-Accredited Investors

While the Yield fund caters exclusively to accredited investors, Cityfunds offers a variety of other investment opportunities available to all. Whether you’re looking to invest in Dallas, Miami, Los Angeles or one of several other growing markets, each Cityfund is designed to provide investors access to diversified home equity investments across the nation’s top cities. This approach spreads your investment across multiple properties, enhancing portfolio stability and minimizing risk.

Check out the cities you can invest in today.