3 high-yield dividend stocks Warren Buffett owns (and 3 similar on the ASX)

An ASX investor can replicate some of Buffett's best dividend stocks.

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Warren Buffett loves a good dividend stock. We discussed as much just the other day, when analysing Buffett and how his company Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) is expected to bring in around $9 billion in dividend income this year alone.

Berkshire may have dozens and dozens of shares in its bulging portfolio. But Buffett gets the vast majority of his dividend income from just a few of those.

So today, let's look at three of Buffett's largest dividend stocks, and some possible ASX equivalents that we can look to for our own dividends here on the Aussie share market.

3 of Warren Buffett's best dividend stocks

Kraft Heinz Co (NASDAQ: KHC)

Kraft Heinz is one of Berkshire's more controversial holdings. Buffett himself helped engineer the merger that brought Kraft and Heinz together back in 2015. But since then, this company has had its fair share of ups and downs. Between 2017 and 2020, shareholders watched as the company shed 75% of its value.

In saying that, Kraft Heinz has kept the support of Buffett, who hasn't sold a single share. The company appears to be slowly on its way up too, having gained almost 75% since its 2020 lows.

Today, Berkshire would be enjoying the 4.13% dividend yield that Kraft Heinz stock currently offers. The closest ASX equivalent to this food giant is probably Bega Cheese Ltd (ASX: BGA). Not only does Bega have a popular range of Australian food products, including Vegemite, but its portfolio of drink brands (including Dare, Vitasoy, and The Juice Brothers) also gives it some semblance to another Buffett favourite, Coca-Cola Company.

Bank of America Corp (NYSE: BAC)

Buffett has long loved bank stocks, but Bank of America remains Berkshire's only holding as of today. Bank of America is one of the most dominant financial institutions in the United States and the world, only behind JP Morgan Chase.

This one provides an easy comparison. The ASX's equivalent to his investment would probably have to be Commonwealth Bank of Australia (ASX: CBA), which is generally regarded as the ASX's highest-quality bank share. Another option could be the second largest ASX bank, National Australia Bank Ltd (ASX: NAB).

ASX investors might be grateful that both CBA's and NAB's dividend yields come in far ahead of BoA though. Right now, CBA shares are offering a fully franked yield of 4.27%, and NAB, 6.15%. That looks pretty good against Bank of America's 3.13%.

Chevron Corporation (NYSE: CVX)

Buffett clearly loves oil stocks, with both Chevron and Occidental Petroleum forming large chunks of Berkshire's portfolio at present. Chevron is a famous US dividend stock. It is even a rare dividend aristocrat, having increased its annual dividend payments every year for 36 years.

Perhaps Buffett's pick of the ASX oil shares would be Woodside Energy Group Ltd (ASX: WDS). Woodside is the clear market leader when it comes to ASX oil stocks, thanks to its blockbuster merger with the petroleum division of BHP Group Ltd (ASX: BHP) last year. This merger made the company the seventh largest on the S&P/ASX 200 Index (ASX: XJO).

Although Woodside can't boast of such an impressive divided streak as Chevron, it still smashes the yield you can get on Chevron stock today. Chevron currently offers a dividend yield of 3.84%, which pales in comparison to Woodside's fully franked 10.72% trailing yield.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway, Coca-Cola, Kraft Heinz, and National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America, Berkshire Hathaway, and JPMorgan Chase. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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