3 Dividend Stocks Warren Buffett Can't Stop Buying

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Warren Buffett has never chased yield for its own sake. He simply asks three questions before he buys. Does the company earn high returns on capital without needing a mountain of debt? Can it fend off competitors for decades? And will management send the excess cash back to owners instead of building an empire of vanity projects? When the answer is yes, the dividend almost takes care of itself.

Berkshire Hathaway (NYSE:BRK-B) has maintained a portfolio of some quality dividend stocks, and many of these are deemed “forever holdings” that Buffett never lets go and instead keeps buying proactively. Buffett has been a net seller for 11 consecutive quarters and has been trimming many beloved holdings, but the following three have been added to.

Occidental Petroleum (OXY)

Occidental Petroleum (NYSE:OXY) is an oil and gas exploration and production company. Warren Buffett has bought the stock in 9 of the previous 15 quarters. He has been buying through thick and thin, even though the share price hasn’t moved in his favor. Buffett has received approval to potentially acquire up to 50% of the company.

This company has significant U.S. oil and gas holdings in the Permian Basin, and having a stake in it goes hand-in-hand with Buffett’s principle of never betting against America.

Buffett has repeatedly praised CEO Vicki Hollub’s leadership, stating she is “running the company the right way” by prioritizing profits over production. In his annual letter to shareholders, Buffett wrote: “Under Vicki Hollub’s leadership, Occidental is doing the right things for both its country and its owners”.

In short, he likes the cash. OXY seems to be a forever holding, so near-term performance does not matter much. Occidental has reduced its debt from over $40 billion by the end of 2019 to $24.17 billion in the most recent quarter. As the debt gets paid off, OXY will yield more in dividends and buybacks. The 3-year dividend growth rate here is over 180%, with the stock yielding 1.99%. The dividend payout ratio of 31% leaves room for more increases.

Constellation Brands (STZ)

Constellation Brands (NYSE:STZ) makes beer, wine, and spirits. It is one of the largest beer companies worldwide and has an excellent track record, up until very recently. The stock is down nearly 41% over the past year, mainly due to concerns over tariffs on Mexican imports.

Q1 FY 2026 results showed a 5.52% revenue decline and a net income decline of 41.2%. Buffett bought the stock right before it declined, but he doubled down on it afterward. In Q4 2024, he purchased 5.62 million shares, followed by another 6.38 million in Q1 2025 and 1.39 million more in Q2 2025.

The primary attraction appears to be Constellation’s position in the U.S. beer market. The company owns Corona and Modelo brands, with Modelo Especial becoming America’s #1 beer brand after the Bud Light backlash.

Buffett likely expects STZ’s beer business to continue generating strong cash flows. Tariffs have disrupted the business significantly, but STZ can bounce back. Analysts expect EPS to start recovering by double digits starting in FY 2027. STZ has a dividend yield of 2.8%.

Domino’s Pizza (DPZ)

Domino’s Pizza (NASDAQ:DPZ) retains the largest pizza market share in the U.S. and is a household name that everyone has heard of. That’s likely why Buffett likes it, but there’s more to it.

Domino’s operates primarily on a franchise model, with 99% of its outlets being franchises. This structure allows the company to collect franchise fees and earn profits from selling pizza ingredients and equipment to franchisees without the capital-intensive burden of owning stores directly.

Pizza delivery is also a simple business and largely insulated from tariffs. DPZ stock shrugged aside the hit the broader market took in the spring of this year as tariffs were being announced. It is up 12.8% over the past year, as of this writing.

He bought 1.28 million shares in Q3 2024, 1.1 million shares in Q4 2024, 239k shares in Q1 2025, and 13.3k shares in Q2 2025.

DPZ yields 2.8%.