5 Dividend Stocks Billionaires Are Buying In 2024

Dividend stocks have been under pressure lately as investors flocked to high-growth tech companies to ride the AI bandwagon. However, amid the latest data showing signs of easing inflation, many analysts believe possible rate cuts from the Federal Reserve could reignite the market's interest in income stocks. Research from Columbia Threadneedle Investments, which analyzed data from 1973 through 2023, showed that dividend-growing stocks outperform other stocks when the Federal Reserve begins to cut interest rates. 

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Perhaps that's why top money managers and billionaires have been piling into dividend growth stocks with strong balance sheets and decades of consecutive dividend hikes. This article will look at some of the most popular dividend stocks among notable billionaires. We analyzed the latest portfolios of top billionaires, including Warren Buffett, Ken Fisher, Israel Englander, Steve Cohen, and Cliff Asness. We identified five dividend stocks commonly held across these influential investors’ portfolios.

Coca-Cola

Coca-Cola Co. KO has 62 consecutive years of dividend increases. Its resilient business makes the stock a defensive play when times are tough. The stock yields about 3% as of July 11, 2024. Some of the famous billionaires with stakes in the beverage company include Warren Buffett ($24.5 billion), Ken Griffin ($539 million), Ray Dalio ($384.74 million), and Steve Cohen ($325.04 million). 

Coca-Cola shares are up 5.4% so far this year. The latest industry data from Nielsen showed that Coca-Cola’s market share remains strong. During the 12 months ending May 18, Coca-Cola sales jumped 4.1% year over year, much higher than the beverage industry's average growth of 1.1% during the same period.

Chevron 

What sets Chevron Corp. CVX apart from other dividend stocks is this: legendary investor Warren Buffett is the biggest stakeholder in the company, with an eye-popping $19.4 billion. But if you need more reasons to be impressed with the oil company, the list of billionaire shareholders is long. The stock is in the portfolios of Cliff Asness, Ken Griffin, Israel Englander, and Louis Bacon. 

Chevron has an over 4% dividend yield and 36 years of consecutive dividend growth history. Chevron is a cash-rich company that returns value to shareholders via buybacks and dividends. Last year, the company made headlines when it announced a $75 billion share buyback plan.

 Exxon Mobil 

With a 3.3% dividend yield and over 40 straight years of dividend growth, oil giant Exxon Mobil Corp. XOM is loved by income investors. As of the end of the first quarter of 2024, billionaire Ken Fisher had a $3.1 billion stake in the company. Meanwhile, billionaire Steve Cohen held a $259 million stake via his fund Point72 Asset Management. Other billionaire stakeholders in ExxonMobil include Ken Griffin, Cliff Asness and D.E. Shaw. Earlier this year, ExxonMobil completed its $60 billion acquisition of Pioneer Natural Resources. 

Analysts expect the deal to help ExxonMobil reduce oil and gas production costs. During the first quarter alone, the company generated about $8.2 billion in earnings and $14.7 billion in cash from operations, while its structural cost savings surpassed $10 billion. This strong cash position and an expected upbeat demand for oil and gas make XOM a strong dividend player in the industry.

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Procter & Gamble 

Consumer goods company Procter & Gamble Co. PG is one of the favorite dividend stocks of billionaires. The company has hiked its dividend for 68 straight years. The list of billionaires having stakes in the company is long: Ken Fisher (over $2.67 billion), Ray Dalio ($666 million), D.E. Shaw ($151 million), Israel Englander ($51 million), and Cliff Asness ($256 million), among others. Procter & Gamble shares have gained about 11% this year. Despite inflation, the company remains in a strong pricing position, as it's behind household names like Gillette, Old Spice, Oral B, and Pampers. Wall Street expects a 6% to 7% annual EPS growth for the company over the next two years. 

Johnson & Johnson 

With 62 years of consecutive dividend increases, Johnson & Johnson JNJ is one of the most famous and sought-after dividend stocks. Among the notable billionaire hedge funds having stakes in the company as of the end of the first quarter include Ken Fisher's Fisher Asset Management (over $1 billion), Ray Dalio's Bridgewater Associates (about $450 million), and Cliff Asness' AQR Capital ($382 million), among several others. Johnson & Johnson shares have been down about 6% this year, and the stock's forward P/E ratio is 14.17, much lower than the sector median of 18.7. While litigation-related headwinds have taken a toll on the stock, analysts believe the company's diversified revenue stream and strong cash position make it a safe dividend stock for the long term.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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