What are Warren Buffett's favorite dividend stocks?

Warren Buffett’s Longtime Love Affair with American Express

When it comes to dividend stocks, few names stand out like American Express. For decades, Warren Buffett has not only praised the company but backed his confidence with serious capital. Though he first dipped into the stock back in the 1960s, it wasn’t until the 1990s that Berkshire Hathaway began amassing the substantial stake we see today.

Now, Berkshire owns more than 20% of American Express—making it one of Buffett’s most significant and enduring holdings. That kind of commitment isn’t typical even for him, which speaks volumes about how much he trusts the brand, its business model, and its ability to weather economic storms. Unlike many financial stocks, American Express isn’t a bank in the traditional sense. It operates on a fee-based model, powered by a loyal customer base that values premium credit cards and travel services.

Buffett has often pointed to the company’s strong brand and moat—that intangible edge that keeps competitors at bay. In American Express’s case, it’s built on trust, customer loyalty, and a powerful rewards ecosystem. Even during downturns, the company has maintained consistent profitability and a growing dividend, something Buffett deeply values.

What makes this investment even more remarkable is how long Buffett has held it. In an era of rapid trading and short-term plays, his patience with American Express reflects a core principle: buy once, hold forever—if it’s good enough. While Berkshire owns other dividend payers like Apple and Coca-Cola, American Express holds a special place as both a financial asset and a symbol of enduring quality.

For investors watching Buffett’s moves, American Express remains a masterclass in sticking with what works—no flash, no hype, just steady, compounding value over time.