While Warren Buffett is not a fan of paying dividends, having labelled the one and only Berkshire Hathaway dividend a mistake, he certainly is a fan of receiving them.
Over the years, Buffett has consistently bought stakes in high-quality businesses that share their profits with shareholders each year.
And while the Oracle of Omaha tends to focus on the US market, that doesn't mean there aren't any Buffett-style dividend stocks for investors on the ASX.
Listed below are a couple of ASX dividend stocks that might tick a few boxes for the legendary investor. Here's what you need to know about them:
APA Group (ASX: APA)
Buffett is no stranger to utilities. In fact, Berkshire Hathaway has a subsidiary called Berkshire Hathaway Energy that owns and operates energy businesses across the United States, Canada, and even the United Kingdom.
APA Group is similar to Berkshire Hathaway Energy. It deals in the ownership and operation of energy infrastructure assets and businesses. This includes energy infrastructure, comprising gas transmission, gas storage and processing, and gas-fired and renewable energy power generation businesses located across Australia.
According to a note out of Morgans, its analysts expect APA to pay dividends per share of 55 cents in FY 2023 and 56.5 cents in FY 2024. Based on the current APA share price of $10.65, this will mean yields of 5.15% and 5.3%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
Another area of the stock market that Buffett is known to frequent is the insurance sector. Berkshire Hathaway owns or owns stakes in insurers including GEICO, Gen Re, and Berkshire Hathaway Speciality Insurance.
Luckily for Australian investors, there are a number of insurance shares on the local share market. One, Insurance Australia Group Ltd (ASX: IAG), even counts Berkshire Hathaway as a shareholder.
In addition, there is insurance giant QBE. It is involved in underwriting general insurance and reinsurance risks globally.
Goldman Sachs is expecting some big dividend yields from the insurer. It is forecasting dividends per share of 75 cents in FY 2023 and 80 cents in FY 2024. Based on the current QBE share price of $13.86, this will mean 5.4% and 5.8% yields, respectively.
