The stock market rally has run out of steam so far in 2022 as investors grow increasingly concerned about elevated inflation and the potential for aggressive Federal Reserve interest rate hikes. The U.S. economic outlook is uncertain, the war in Ukraine is uncertain and the valuation of growth stocks is uncertain as interest rates start to rise.
Fortunately, Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett is perhaps the most popular and successful value investor of all time.
When it comes to playing defense, Buffett's stocks are always high-quality investments, and a handful of them even pay sizable dividends as well. Here are the seven Buffett stocks to buy with the highest dividend yields.
Store Capital Corp (NYSE:STOR)
Store Capital is an internally managed net-lease real estate investment trust (REIT).
Store shares are down about 13.8% so far in 2022, but the stock's weakness has pushed its dividend yield up to 5.2%, the highest of any stock Buffett currently owns. A large portion of Store's income comes from restaurants, health clubs, movie theaters and other businesses that could see a strong rebound this year.
Buffett first invested in Store Capital back in the second quarter of 2017. His current stake of about 24.4 million shares is worth more than $722.4 million.
Verizon Communications Inc. (NYSE:VZ)
Verizon is the largest U.S. wireless carrier. It's also one of the highest-yielding stocks in the Buffett portfolio with a dividend of 4.7%.
Verizon shares have bucked the negative market trend so far in 2022, gaining 4.5% year-to-date even before factoring in the dividend. Buffett first invested aggressively in Verizon in the fourth quarter of 2020. There are several aspects of Verizon shares that likely attracted Buffett, including its valuation, its relatively stable business, its high margins and its resistance to an economic downturn.
Berkshire holds about 158.8 million shares of VZ stock worth more than $8.6 billion.
See Also: Why Warren Buffett Doesn't Buy Real Estate
Kraft Heinz Co (NASDAQ:KHC)
Kraft Heinz is one of the largest consumer packaged food and beverage companies in the world. Not only is Kraft Heinz one of Buffett's highest-yielding dividend stocks, it's also one of Berkshire's five largest overall holdings.
Kraft Heinz has been a bright spot for Buffett so far in 2022, gaining 16.6% year-to-date. Even after the stock's rally, Kraft Heinz shares still pay a 3.8% dividend.
Buffett first invested in Kraft Heinz back in the third quarter of 2015. His current stake of about 325.6 million shares is worth more than $13.5 billion.
US Bancorp (NYSE:USB)
U.S. Bancorp is the sixth-largest U.S. bank by deposits. It's also one of the highest-yielding Buffett stocks with a dividend of 3.6%.
Buffett is known for his love of bank stocks, but yield curves have been frustratingly flat for bank investors even as the Federal Reserve has moved to aggressively raise interest rates to combat inflation. U.S. Bancorp shares are down about 10.7% so far in 2022.
Buffett first invested in U.S. Bancorp way back in the first quarter of 2006. His current stake of about 144 million shares is worth more than $7.2 billion.
AbbVie Inc (NYSE:ABBV)
AbbVie is a global research-based pharmaceuticals business, and its lead product is rheumatoid arthritis drug Humira. It's also one of the highest-yielding stocks in the Buffett portfolio with a dividend of 3.3%.
AbbVie shares have also bucked the negative market trend so far in 2022, gaining 17.2% year-to-date even before factoring in the dividend. Buffett first invested in AbbVie in the third quarter of 2020. In recent quarters, Buffett has been dumping his healthcare stocks, and AbbVie is no exception.
Berkshire now holds about 3 million shares of ABBV stock worth more than $410.7 million, but he sold about 78% of his stake in the fourth quarter of 2021.
See Also: 10 Quotes That Show Warren Buffett's Lighter Side
Chevron Corporation (NYSE:CVX)
Oil major Chevron is one of Buffett's newest investments, and it has been a home run so far.
Buffett first invested in Chevron in the fourth quarter of 2020, and the stock is up 68% in the past year as oil and gas prices have skyrocketed. Even after the big run, Chevron shares still pay a sizable 3.3% dividend, and Buffett is still loving the stock. Berkshire's most recent quarterly filings revealed Buffett raised his stake in Chevron by about 33% in the most recent quarter.
As of the end of 2021, Berkshire held about 38.2 million shares of Chevron worth more than $6.5 billion.
Bank of New York Mellon Corp (NYSE:BK)
Bank of New York Mellon is a leading global asset servicer, providing securities processing, asset management and servicing to institutional and individual clients. It's also one of the highest-yielding Buffett stocks with a dividend of 2.8%.
Bank of New York Mellon investors are likely frustrated that interest rates are finally rising and the stock is still lagging the overall market. BK shares are down about 17% so far in 2022.
Buffett first invested in U.S. Bancorp way back in the third quarter of 2010. His current stake of about 47.3 million shares is worth more than $3.5 billion.
