---
title: "Warren Buffett's Portfolio Includes 8 High-Yield Dividend Stocks -- Here's My Top Pick"
description: "Warren Buffett's Berkshire Hathaway portfolio includes eight high-yield dividend stocks, with Constellation Brands (STZ) being the top pick. Despite challenges in the alcohol market, Constellation's a"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/254302988.md"
published_at: "2025-08-24T08:14:48.000Z"
---

# Warren Buffett's Portfolio Includes 8 High-Yield Dividend Stocks -- Here's My Top Pick

> Warren Buffett's Berkshire Hathaway portfolio includes eight high-yield dividend stocks, with Constellation Brands (STZ) being the top pick. Despite challenges in the alcohol market, Constellation's annual dividend has consistently risen since 2015, and it has a promising turnaround potential. The stock's forward P/E ratio of 13 suggests it may be undervalued, making it an attractive option for growth and income. Berkshire has aggressively increased its stake in Constellation, indicating confidence in its future performance amid a market where it has been a net seller of stocks.

Warren Buffett and his team at **Berkshire Hathaway** have long invested in dividend stocks. In today's market environment, the average dividend yield is 1.2%.

If one defines "high yield" as double that return or more, eight stocks in the Berkshire portfolio offer such dividend returns. However, of these, my top pick in the market's current state is the stock the company has bought aggressively lately, **Constellation Brands** (STZ 1.56%), and here's why.

Image source: Getty Images.

## Berkshire's high-yield stocks

Choosing Constellation is also a question of why not the other seven high-yield dividend stocks in the Berkshire Hathaway portfolio. In most cases, it owns stocks that were once excellent buys but are now better as holds or possibly, stocks one should sell.

In recent quarters, Berkshire has trimmed holdings in **Bank of America**. Also, it has kept share counts the same for other stocks for years. **Ally Financial** and Constellation peer **Diageo** fit that description. Nonetheless, the best example may be **Coca-Cola**, as Berkshire's position size has remained unchanged since 1994.

Of the eight stocks, **Kraft Heinz** has the most significant yield at 5.8%. However, since Berkshire helped consolidate that company in 2015, the stock has fallen by two-thirds, and it experienced a dividend cut in 2018. Amid the unhealthy state of the packaged food industry, its problems are likely far from over.

**SiriusXM** is also going through some turmoil. On the surface, investors may like its 4.9% dividend yield, but struggles with subscriber growth have weighed on the stock.

Of these choices, energy giant **Chevron** is my second favorite. Amid the 4.4% dividend yield, Berkshire made modest additions to its position. Still, its rising stock price makes it less likely to move higher in the near term, making it more fitting for investors focused exclusively on income.

## The case for Constellation Brands

Admittedly, despite the state of Berkshire's seven other high-yield dividend stocks, choosing Constellation may come as a surprise to many. Amid the rise in cannabis-infused products, Gen Z consumes less alcohol than older generations, which could bode poorly for the company's future.

Moreover, although Constellation is an alcohol stock, beer makes up the overwhelming majority of its revenue. It holds U.S. distribution rights to some of America's most popular beers like Modelo and Corona. Still, those come from Mexico, and with looming tariffs, Modelo could lose its status as the U.S.'s No. 1 beer.

Furthermore, Constellation's annual dividend is $4.08 per share, a yield of just under 2.5%. That is well below several Warren Buffett investments, including Chevron.

Still, the payout has risen every year since 2015, indicating that it can deliver returns long term. Furthermore, making Constellation the top choice means one must also argue a case for stock price appreciation on top of dividend growth.

Constellation could ultimately deliver those returns because, for all of its problems, it is a turnaround story with a visible path to success. Although the company and some of its brands face significant challenges, humans have consumed alcohol for thousands of years, and this dynamic is unlikely to change.

Moreover, consumers tend to gravitate to familiar brands, and Constellation has those, particularly in the beer business. The company can also expand its revenue substantially by applying the success it has had with beer to the wine and spirits parts of its enterprise.

Furthermore, Constellation offers a low valuation, though investors may have to take a closer look to see the opportunity. Its trailing P/E ratio of 47 makes it appear expensive, though asset impairments caused that spike in the earnings multiple. Thus, its forward P/E ratio of 13, which does not include such one-time occurrences, is likely a more appropriate measure of its valuation.

That low forward P/E ratio may be the reason that Constellation is currently Berkshire's fastest-growing holdings in terms of share growth. It began investing by buying more than 5.6 million shares in the fourth quarter of 2024. It was followed by purchasing an additional 6.4 million shares in Q1 and 1.4 million more in the second quarter. Investing so much at a time when Berkshire has been a net seller of stocks likely indicates that it sees an opportunity that other investors have overlooked.

## Buying Constellation Brands stock

When evaluating Berkshire Hathaway's high-yield dividend stocks, Constellation is likely the one with the best growth and income holding.

Admittedly, it does not have the highest dividend yield of the eight stocks, and its business has struggled.

However, it benefits from ties to well-known beer brands, and opportunities for growth in the wine and spirits businesses could bring significant revenue increases. Additionally, the 13 forward P/E ratio suggests that investors have become overly pessimistic, indicating that Berkshire and its followers could profit as more investors recognize the stock's growth potential.

### Related Stocks

- [STZ.US - Constellation Brands](https://longbridge.com/en/quote/STZ.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| BUZZ-Constellation Brands names Nicholas Fink as new CEO; shares down | Shares of Corona beer maker Constellation Brandsdown 1.4% at $160 after the bell Co appoints Nicholas Fink as its top bo | [Link](https://longbridge.com/en/news/275817942.md) |
| Constellation Brands Sees 'Solid Start' To 2026: Analyst Predicts Strong Year For Beer Giant | Constellation Brands (NYSE:STZ) reported strong Q3 results, exceeding analyst expectations for revenue and earnings per  | [Link](https://longbridge.com/en/news/271972122.md) |
| Miracle Mile Advisors LLC Trims Holdings in Constellation Brands Inc $STZ | Miracle Mile Advisors LLC has reduced its holdings in Constellation Brands Inc (NYSE:STZ) by 56.9% in Q3, now owning 6,1 | [Link](https://longbridge.com/en/news/271419094.md) |
| Constellation Brands (NYSE:STZ) Posts Earnings Results, Beats Estimates By $0.39 EPS | Constellation Brands (NYSE:STZ) reported earnings of $3.06 per share, exceeding analysts' estimates of $2.67 by $0.39. T | [Link](https://longbridge.com/en/news/271838423.md) |
| Constellation Brands warns beer sales under pressure as Hispanic consumers cut back | Constellation Brands warns that beer sales may remain volatile due to economic uncertainty and high unemployment among H | [Link](https://longbridge.com/en/news/271964752.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
