5 of Warren Buffett's New Q2 Stock Buys Pay Big Dividends

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If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. They were stunned at this year’s meeting when Buffett announced that he would be stepping down as CEO of the investment giant at the end of the year. While he will remain board chair and continue to have a voice in the day-to-day operations, his pre-announced successor, Greg Abel, will assume the chief executive position at the end of the year. 

While Berkshire Hathaway Inc. (NYSE: BRK-B) has sputtered since the May announcement, Mr. Buffett returned to his value roots during the second quarter, making some big purchases, including a $1.6 billion stake in UnitedHealth Group Incorporated (NYSE: UNH). While all of the purchases, both new positions and additions to existing holdings, have been reported ad nauseam, we decided to screen all of the second-quarter trades looking for the companies paying the biggest dividends. Five hit our screens, and all of them look very reasonable at current trading levels. In addition, all are rated Buy at top Wall Street firms, 24/7 Wall St. covers.

Why do we cover Warren Buffett’s stocks?

Few investors have the results and reputation that Buffett has garnered over the past 50 years. While investing has evolved over the past half-century, buying good companies with products and services recognized worldwide, while paying dividends, will always remain a timeless approach.

UnitedHealth Group

This was the story of the summer so far as Warren Buffett initiated a brand new $1.6 billion stake (5 million shares) in this major health insurer, which has seen some rough going over the last year. UnitedHealth Group Incorporated (NYSE: UNH) is a nationwide healthcare and well-being company.

Its segments include:

• Optum Health,
• Optum Insight,
• Optum Rx, and
• UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, and UnitedHealthcare Community & State

Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty, and surgical care; helps patients and providers navigate and address complex, chronic, and behavioral health needs.

Optum Insight connects the healthcare system with services, analytics, and platforms that make clinical, administrative, and financial processes more straightforward and more efficient for all participants in the healthcare system.

Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies, and the provision of in-home and community-based infusion services.

JPMorgan has an Overweight rating with a $310 target price.

Lamar Advertising

One of the leaders in outdoor digital advertising display, this new addition pays the highest dividend of the entire Berkshire Hathaway portfolio. Lamar Advertising Company (NASDAQ: LAMR) is an outdoor advertising company with over 363,000 displays across the United States and Canada. It offers advertisers a variety of billboards, interstate logo, transit, and airport advertising formats. Berkshire Hathaway initiated a small (for them) initial position of 1.2 million shares.

The Company offers its customers a network of digital billboards in the United States with approximately 5,100 displays.

Lamar Advertising operates three types of outdoor advertising displays:

• Billboards
• Logo signs
• Transit advertising displays

Under Billboards, it rents most of its advertising space on two types of billboards: bulletins and posters. In addition to traditional billboards, it rents space on digital billboards, which are located on major traffic arteries and city streets.

Under Logo signs, it rents advertising space on logo signs located near highway exits.

Under Transit advertising displays, it rents advertising space on the exterior and interior of public transportation vehicles, in airport terminals, and on transit shelters and benches.

Citigroup has a Buy rating on the stock with a $135 target price.

Chevron

This American multinational energy company primarily focuses on oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial dividend, which was raised by 5% earlier this year. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through two segments, Upstream and Downstream.  Berkshire increased its stake by almost3% (3.45 million additional shares), now valued at ~$17.5 billion.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this fall.

UBS has a Buy rating with a $186 price target objective.

Constellation Brands

Constellation is the largest beer import company in the US, measured by sales, and has the third-largest market share of all major beer suppliers. If there is any company whose products remain in style, it’s this one, which achieves only 7% of its sales abroad. Constellation Brands Inc. (NYSE: STZ), together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.

Berkshire Hathaway increased its position in the company by over 11% in the second quarter, bringing the total value to over $2.2 billion.

The company provides beer primarily under these popular brands:

• Corona Extra
• Corona Premier
• Corona Familiar
• Corona Light
• Corona Refresca
• Corona Hard Seltzer
• Modelo Especial
• Modelo Negra
• Modelo Chelada
• Victoria
• Vicky Chamoy
• Pacifico

It also offers wine under:

• Cook’s California Champagne
• Kim Crawford
• Meiomi
• Mount Veeder
• Ruffino
• SIMI
• My Favorite Neighbor
• Robert Mondavi Winery
• Schrader
• The Prisoner Wine Company

Spirits are sold under the Casa Noble, Copper & Kings, High West, Mi CAMPO, and Nelson’s Green Brier brands.

Jefferies has a Buy rating with a $205 target.

Domino’s Pizza

Domino’s Pizza Inc. (NASDAQ: DPZ) is an American multinational pizza restaurant chain founded in 1960. Buffett bought this stock in 2024. Domino’s is a company that operates a significant business in both delivery and carryout pizza. Berkshire Hathaway increased its holdings in the company by approximately 13,300 shares in Q2 2025, marking a 0.5% increase in its position. This was at an average purchase price of $469.22 per share, with prices during that quarter ranging from $430.72 to $497.52. 

The company operates through three segments:

• U.S. stores
• International franchise
• Supply chain

The U.S. stores segment primarily comprises franchise operations, consisting of franchised stores in the United States. The segment also operates a network of U.S. company-owned stores.

The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets.

The supply chain segment primarily includes distributing food, equipment, and supplies to stores from the company’s supply chain center operations in the United States and Canada. Its Pinpoint Delivery technology allows customers to receive a delivery nearly anywhere, including parks, baseball fields, and beaches.

Domino’s Pizza is a public restaurant brand with a global enterprise of over 20,500 stores in over 90 markets.

UBS has a Buy rating on the company with a $540 target price.

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