{"id":4416,"date":"2026-09-12T10:01:24","date_gmt":"2026-09-12T10:01:24","guid":{"rendered":"https:\/\/smartinvestingschronicle.com\/index.php\/2026\/09\/12\/1-top-warren-buffett-stock-for-dividend-investors\/"},"modified":"2026-09-12T10:01:24","modified_gmt":"2026-09-12T10:01:24","slug":"1-top-warren-buffett-stock-for-dividend-investors","status":"publish","type":"post","link":"https:\/\/smartinvestingschronicle.com\/index.php\/2026\/09\/12\/1-top-warren-buffett-stock-for-dividend-investors\/","title":{"rendered":"1 Top Warren Buffett Stock for Dividend Investors"},"content":{"rendered":"<div>\n<h2>Key Points<\/h2>\n<ul>\n<li>\n<p>Warren Buffett&#8217;s successor as CEO of Berkshire Hathaway initiated a position this year.<\/p>\n<\/li>\n<li>\n<p>The stock has a higher dividend yield than the S&amp;P 500.<\/p>\n<\/li>\n<li>\n<p>Trading at a steep value compared to the market, shareholders should also have upside potential.<\/p>\n<\/li>\n<li>10 stocks we like better than Macy&#8217;s \u203a<span id=\"pit-2492f18f-744c-4d43-bfc3-effd15aadf46\" style=\"display:none\"\/><\/li>\n<\/ul>\n<p><strong>Berkshire Hathaway<\/strong> doesn&#8217;t pay a dividend. However, former CEO and legendary investor Warren Buffett purchased shares in companies that make payouts.<\/p>\n<p>His successor, Greg Abel, has also purchased a dividend-paying stock this year that investors should examine closely. For those seeking dividends with upside potential, <strong>Macy&#8217;s<\/strong> <span class=\"ticker\" data-id=\"203559\">(NYSE: M)<\/span> fits the bill.<\/p>\n<p><strong>Missed Nvidia in 2009? This Rare Signal Is Flashing Again.<\/strong> <span>In 2009, a &#8220;Double Down&#8221; signal flashed for a little-known chipmaker called Nvidia.<\/span> For the first time in years, that same &#8220;Total Conviction&#8221; signal is flashing for a company 1\/100th the size of Nvidia. <span style=\"text-decoration: underline;\"><strong>Continue \u00bb<\/strong><\/span><\/p>\n<p><span id=\"pit-3ddd4e4e-edfa-41bf-8c89-cd5f39aeb2ef\" style=\"display:none\"\/><\/p>\n<p>It&#8217;s a new equity position for Berkshire this year. As of June 30, Berkshire owned 7.3 million shares valued at $173 million.<\/p>\n<p>Berkshire has certainly shown it likes Macy&#8217;s stock, but here&#8217;s why the retailer deserves your consideration.<\/p>\n<p><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<h2>Supporting dividends<\/h2>\n<p>Macy&#8217;s raised its quarterly dividend by 5% this year. That increased the payout from $0.1824 to $0.1915 per share. The board of directors has raised dividends annually since 2022. Macy&#8217;s resumed payments in 2021 after taking the understandable step of suspending them in 2020 following the onset of the COVID-19 pandemic.<\/p>\n<p>The sharp increase this year sends a positive signal about the company&#8217;s confidence in its ability to maintain the higher rate. Still, it&#8217;s important to check that it can sustain dividends.<\/p>\n<p>A good measure you can use is the payout ratio, or the dividends as a percentage of earnings. Macy&#8217;s has a comfortable 29% payout ratio, which should reassure investors.<\/p>\n<p>The stock has an above-average dividend yield, too. Macy&#8217;s shares yield 3.4% compared to 1.1% for the <strong>S&amp;P 500<\/strong>. <span class=\"ticker\" data-id=\"220472\">(SNPINDEX: ^GSPC)<\/span><\/p>\n<h2>Upside potential<\/h2>\n<p>Macy&#8217;s share price gained 29.6% over the last year, through Sept. 8. That beat the S&amp;P 500&#8217;s 18.4% by 11.2 percentage points.<\/p>\n<p>However, with Macy&#8217;s in the midst of turning around its business, I think there&#8217;s more upside potential. Management&#8217;s &#8220;Bold New Chapter&#8221; strategy, launched a couple of years ago, included plans to improve the shopping experience, close unprofitable stores, expand its luxury Bloomingdale&#8217;s and Bluemercury luxury brands, and improve the Macy&#8217;s brand offerings. <\/p>\n<p>You can see the improvement in the company&#8217;s sales results. Same-store sales (comps) have been growing, including by 2.8% in the recently reported fiscal second quarter. All brands had positive comps, with Macy&#8217;s, Bloomingdale&#8217;s, and Bluemercury posting 1.1%, 11.3%, and 6.2%, respectively.<\/p>\n<p>Importantly, the company&#8217;s gross margin, excluding tariff refunds, expanded from 41.4% to 41.5%.<\/p>\n<p>Despite these positive results, Macy&#8217;s shares remain an attractive value opportunity. The stock has a price-to-earnings (P\/E) ratio of about 9, a fraction of the S&amp;P 500&#8217;s P\/E of 26.<\/p>\n<h2>Should you buy stock in Macy&#8217;s right now?<\/h2>\n<p>Before you buy stock in Macy&#8217;s, consider this:<\/p>\n<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <strong>10 best stocks<\/strong> for investors to buy now\u2026 and Macy&#8217;s wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p>Consider when <strong>Netflix<\/strong> made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $409,917<\/strong>!* Or when <strong>Nvidia<\/strong> made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $1,341,724<\/strong>!*<\/p>\n<p>Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 942<span>% \u2014 a market-crushing outperformance compared to 211% for the S&amp;P 500. <strong><span style=\"font-weight: 400;\">Don&#8217;t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n<p><strong>See the 10 stocks \u00bb<\/strong><\/p>\n<p class=\"disclaimer\" style=\"font-size: 0.65rem; color: #767676; margin-top: 5px; text-align: left;\">*Stock Advisor returns as of September 12, 2026. <\/p>\n<p><span id=\"pit-27fd3b4e-1b63-42eb-80d8-dbada5daa64d\" style=\"display:none\"\/><\/p>\n<p>Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key Points Warren Buffett&#8217;s successor as CEO of Berkshire Hathaway initiated a position this year. The stock has a higher dividend yield than the S&amp;P 500. Trading at a steep value compared to the market, shareholders should also have upside potential. 10 stocks we like better than Macy&#8217;s \u203a Berkshire Hathaway doesn&#8217;t pay a dividend. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/4416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/comments?post=4416"}],"version-history":[{"count":0,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/4416\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/media\/4265"}],"wp:attachment":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/media?parent=4416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/categories?post=4416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/tags?post=4416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}