Warren Buffett Style Value Dividend Stocks
Stocks matching Warren Buffett's investment philosophy: undervalued companies (PE < 20) with consistent dividends, strong moats, and large-cap stability.
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Frequently Asked Questions
What kind of stocks does Warren Buffett buy?
Buffett's criteria: businesses he understands, durable competitive moats (brand, network effects, cost advantages), honest and capable management, and attractive prices relative to intrinsic value. His favorite sectors are consumer staples (Coca-Cola), financial services (American Express, Bank of America), and energy (Chevron, Occidental). He prefers companies returning cash through dividends or buybacks.
What is Warren Buffett's favorite dividend stock?
Coca-Cola (KO) is Buffett's most celebrated dividend holding. Berkshire Hathaway bought its stake in 1988 for approximately $1.3 billion. Today, Coca-Cola pays Berkshire over $736 million in annual dividends — a yield on original cost exceeding 50%. Buffett has never sold a single share in over 35 years.
What PE ratio does Warren Buffett prefer?
Buffett doesn't follow a strict PE rule. He focuses on "owner earnings" (free cash flow available to shareholders) and is willing to pay higher multiples for genuinely exceptional businesses. Historically, his best purchases have been companies trading at 10-20x earnings in sectors where that represents value.
How do I invest like Warren Buffett?
Key principles: (1) Buy great companies at fair prices, not fair companies at great prices. (2) Think long-term — 10+ year holding horizon. (3) Only invest in businesses you understand. (4) Look for pricing power and brand moats. (5) Be greedy when others are fearful. (6) Reinvest dividends to compound returns.
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