Warren Buffett sold 11 shares in Q2. But 1 is still a no-brainer buy for income investors.

Warren Buffett has always liked stocks. However, there are times when they like it less. Now is one of those times.

The legendary investor has been a net seller of stocks for seven consecutive quarters. His Berkshire Hathaway sold 11 shares in the second quarter of 2024. But one of them still looks like an excellent choice for income investors.

Buffett shares sold in Q2

Buffett’s biggest sale in Q2 was his reduction of nearly half of his Berkshire Hathaway position in the Apple. However, despite the aggressive selling, Apple remains the largest holding in Berkshire’s portfolio.

Two financial services giants have also fallen somewhat out of favor with Buffett. Berkshire continued to sell shares of Bank of America in Q2 and also sold 21% of its stake in Capital One Financial.

The 94-year-old investor reduced Berkshire’s position in Chevron (NYSE: CVX) by 3.6% in Q2. He also trimmed the conglomerate’s positions Liberty Media Class A and Liberty Media Class C by less than 2% each.

They also included other relatively modest sales for Berkshire in Q2 Flooring and decor, Louisiana-Pacificand T-Mobile USA. However, he completely left Berkshire’s positions in Paramount Global and Snowflake.

More dividend stocks in the mix

Income investors might say get rid of some of the shares Berkshire sold in Q2. Floor & Decor, Liberty Media and Snowflake do not pay dividends.

Two others offer meager dividends. Apple’s forward dividend yield is just 0.44%, while Louisiana-Pacific’s forward dividend yield is 0.97%.

Capital One Financial might be a bit more appealing to income investors with its forward dividend yield of 1.63%. T-Mobile US and Paramount Global pay even better dividends, with yields of 1.73% and 1.89%, respectively.

Buffett likes Bank of America less than in the past, however, he may not have much to complain about with the big bank’s dividend. BofA’s forward dividend yield is 2.65%. The company recently raised its dividend payout by 8%.

No-brainer buy for income investors

There is one stock among Buffett’s second-quarter sales, however, that I think is an unusual buy for income investors. Chevron offers a juicy forward dividend yield of 4.58%. The company has increased its dividend for 37 consecutive years.

Chevron could be helped by several factors in the near term. Lower interest rates should boost the US economy, potentially spurring increased consumption of oil and gas. Tensions in the Middle East could keep oil prices higher.

Looking a little further, an arbitration panel is scheduled to hold a hearing next year to address a challenge raised by ExxonMobil (NYSE: XOM) related to Chevron’s pending acquisition of Hess (NYSE: HES). Chevron CEO Mike Wirth said in the company’s Q2 earnings call that he is confident of a positive outcome of this arbitration.

The story continues

Assuming Wirth’s optimism proves justified, Chevron’s acquisition of Hess should significantly expand and diversify the company’s portfolio of oil and gas assets. Most importantly for income investors, the deal should also lead to higher cash flow and dividend distributions to shareholders.

Demand for oil and gas is likely to remain strong for a long time, even with increased adoption of renewable energy. Chevron is also investing heavily in carbon capture and storage technology. If these efforts are successful, the company’s long-term prospects will be particularly bright.

Buffett still likes Chevron, even though he sold some shares in Q2. Chevron wouldn’t be Berkshire’s fifth-largest holding if it hadn’t. I think income investors should also like this high-yielding dividend stock.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, Berkshire Hathaway, Chevron and ExxonMobil. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Chevron and Snowflake. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.

Warren Buffett sold 11 shares in Q2. But 1 is still a no-brainer buy for income investors. was originally published by The Motley Fool