Investing Ideas

Warren Buffett Just Bought This Beaten-Down High-Yield Dividend Stock

The Oracle of Omaha had been selling this stock, but he's buying it hand over fist again.

Warren Buffett continues to keep most of his powder dry. In Q4 2023, he only bought three stocks, all of which were additions to existing Berkshire Hathaway (BRK.A, BRK.B) positions.

When Buffett is reluctant to invest, it's worth paying close attention to the stocks that he is willing to buy. One of his recent purchases, Chevron (CVX), is a beaten-down high-yield dividend stock. Why is Buffett loading up on Chevron — and should you follow in his footsteps?

Chevron ranks as Buffett's fifth-largest position, making up 5.1% of Berkshire's overall portfolio. The legendary investor first initiated a position in the oil and gas giant in Q4 2020. At the time, Chevron's shares were down significantly with the lingering impact of the Covid-19 pandemic.

Buffett seemed to have adopted a less positive take on Chevron beginning in the fourth quarter of 2022, selling nearly 2.4 million shares. During the first three quarters of last year, he reduced Berkshire's stake in the stock by close to 52.8 million shares.

However, the Oracle of Omaha is again making a big bet on Big Oil. He scooped up another 15.8 million shares of Chevron in Q4. Buffett also continued to aggressively buy shares of Occidental Petroleum, which is now Berkshire's sixth-biggest holding.


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