Greg Abel-Led Berkshire Hathaway Owns 26 Dividend Stocks. Here's the One I'd Buy First.
2026-10-05 14:30
•Dave Kovaleski •The Motley Fool
•••• ••••••• Axe Cap view
Why Constellation Brands Stands Out in Berkshire’s Dividend Portfolio
A look at why Constellation Brands offers compelling value among Berkshire Hathaway’s dividend stocks.
Warren Buffett’s Berkshire Hathaway owns a suite of dividend stalwarts, but Constellation Brands (STZ) stands apart. It pays a solid 3.6% yield backed by a conservative payout ratio of roughly 34%, which means it has ample room to maintain or grow dividends. Its valuation, at about 11 times earnings, looks attractive given its steady free cash flow growth near 9% per year. For South African investors, there’s no direct JSE equivalent, but STZ’s strength reminds us why global consumer brands with resilient demand can be safer harbors. This matters especially as the rand remains volatile, trading near 19 to the dollar, pushing us to seek stable offshore income streams. The risk? Shifting demographic trends and tighter immigration policies in key markets may moderate growth. But that seems priced into the decent upside analysts target. this is just our opinion and not financial advice
For rand-hedged income, consider buying Constellation Brands via your preferred offshore platform while keeping position sizes moderate given global macro risks.
- STZ
- USD/ZAR
- demographic headwinds impacting consumer spending
- rand volatility affecting offshore returns
6/10
Berkshire Hathaway's portfolio includes 26 dividend-paying stocks out of 29 total holdings. The article recommends Constellation Brands as the top dividend stock to buy, citing its 3.64% yield, cheap valuation at 11x earnings, strong free cash flow growth, and analyst price target suggesting 54% upside potential, despite recent headwinds from demographic shifts and immigration policy impacts.
Our take is based on reporting first published by The Motley Fool.