1 Top Warren Buffett Stock for Dividend Investors

Key Points Apple's strong brand and sticky ecosystem have made it one of Buffett's favorite stocks. The stock yields only 0.3%, and the company spends far more on buybacks than on dividends. Those buybacks could help the dividend grow at a strong pace for the foreseeable future. 10 stocks we like better than Apple › It's easy to assume that a typical Warren Buffett dividend stock would be some stodgy value stock. Not that there's anything wrong with that -- Coca-Cola has minted its fair share of millionaires. But "stodgy" probably isn't a word you would use to describe Apple (NASDAQ: AAPL) . Ironically, Apple is Berkshire Hathaway 's largest position and one of Buffett's crowning achievements from a legendary career. Many dividend investors lean toward higher yields than Apple's 0.3%, but here's why dismissing the tech giant as a bona fide dividend stock might be a huge mistake. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Image source: The Motley Fool. Apple's ecosystem should continue driving profits and dividends higher People love their iPhones. The brand moat of Apple products is the basis for Buffett's fascination with the company. Of course, Apple's hardware ecosystem goes far beyond phones, including wearable accessories, tablets, and computers. Apple complements its hardware with an array of subscriptions and a massive app store. Both generate recurring, high-margin revenue for Apple. It's the secret sauce that has made Apple one of the world's most profitable companies. Image source: The Motley Fool. Most people tend to stick to Apple devices once they get used to them, upgrading their devices every so often. The company has taken some interesting steps recently to broaden its appeal to a wider range of consumers. Its new entry-level laptop, the MacBook Neo, has been a big hit. Apple has also introduced leasing programs to lower the financial hurdles to entering its ecosystem. Despite Apple's massive size, there's still growth potential. Analysts expect the company to grow earnings by an average of 13% annually over the next three to five years. The dividend yield is small, but the payout is still just 12% of 2026 earnings estimates. There's plenty of room for that dividend to go higher. How Apple's buybacks can actually help dividend investors Some may point out that Apple spends a ton of its profits on buying back its own shares . In fact, the company has spent $82 billion on buybacks over the past four quarters alone, and has lowered its share count by 31.5% over the past decade. That shouldn't turn dividend investors away. A lower share count inflates the company's per-share profits. The connection most people make is that higher per-share profits mean a higher share price, and they often do. They also mean Apple can pay a higher per-share dividend with the same total cash it spends. In other words, the buybacks help Apple grow its dividend faster than its actual dividend payout ratio would suggest. It's an advantage that few companies can claim. Consider that when deciding whether to slot Apple into your dividend stock portfolio. Should you buy stock in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252 !* Now, it’s worth noting Stock Advisor’s total average return is 978 % — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 30, 2026. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy .

Apple's strong brand and sticky ecosystem have made it one of Buffett's favorite stocks.

The stock yields only 0.3%, and the company spends far more on buybacks than on dividends.

Those buybacks could help the dividend grow at a strong pace for the foreseeable future.

It's easy to assume that a typical Warren Buffett dividend stock would be some stodgy value stock. Not that there's anything wrong with that -- Coca-Cola has minted its fair share of millionaires. But "stodgy" probably isn't a word you would use to describe Apple (NASDAQ: AAPL) .

Ironically, Apple is Berkshire Hathaway 's largest position and one of Buffett's crowning achievements from a legendary career. Many dividend investors lean toward higher yields than Apple's 0.3%, but here's why dismissing the tech giant as a bona fide dividend stock might be a huge mistake.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

People love their iPhones. The brand moat of Apple products is the basis for Buffett's fascination with the company. Of course, Apple's hardware ecosystem goes far beyond phones, including wearable accessories, tablets, and computers.