FX.co ★ Five promising stocks in Warren Buffett’s portfolio

Alphabet

Warren Buffet has invested heavily in Alphabet, the parent company of Google. He believes that the firm is full of potential. However, a few years ago, the legendary investor was skeptical about purchasing Google shares. Later, the Oracle of Omaha admitted that he made a mistake. Nowadays, Alphabet has more advantages over its competitors, allowing investors to yield handsome profits. The search giant and the world’s leader in online advertising is one of the most profitable companies in the field of Internet and media services. Alphabet enjoys perfect overall financial health owing to its successful business model. This year, its shares are predicted to surge by 30%.

Verizon Communications

Warren Buffett’s portfolio also includes Verizon Communications’ shares, America’s biggest telecommunications company. Financially, it overtakes AT&T and T-Mobile. In the 4 quarter of 2022, Verizon Communications’ clientele reached 143.3 million. This telecommunications conglomerate is one of the top 15 constituents of the S&P 500 index by dividend yields. Verizon Communications has seen its yearly dividends grow for 18 years, a sign of the company’s dazzling performance. Its share value is forecast to swell by 18.2% in the next 12 months. In 2020, Berkshire Hathaway bet on the giant and earned substantial profit from an acquisition of 159 million Verizon Communications shares.

Bristol-Myers Squibb

Buffett has not missed a chance to invest in Bristol-Myers Squibb, one of the world’s leading pharmaceutical manufacturers. The firm produces drugs used for treating oncological, immune, and cardiovascular diseases as well as fibrosis. Bristol-Myers Squibb earns revenue of a whopping $1 billion a year. Its shareholders receive impressive quarterly and yearly dividends of $0.57 and $2.28 per share respectively. Experts say Bristol-Myers Squibb shares are currently underestimated and predict a surge in their value by 18% in the coming 12 months. Warren Buffett invested in the company in 2020 and sold its stake in Bristol-Myers Squibb in 2022. The move came as part of his general retreat on bets in the pharmaceutical industry.

Dow Inc.

Dow Inc. is also the investor’s choice. The firm is the world’s biggest chemicals producer with offices in over 160 countries. Its financial assets are well-balanced, and its strategy is quite profitable. Dow Inc. has impressive cash reserves and pays dividends on time. Investors find its shares to be an attractive investment instrument. This global chemicals producer has proven to be competitive by successfully overcoming economic challenges. Currently, Dow Inc. is in the phase of steady growth. Its dividends per share are $2.80. In fact, the firm is one of the leaders in the basic materials sector by dividend payments. Dow Inc. is expected to show a 25% increase in its value per share from the current market price.

Steel Dynamics

The Oracle of Omaha’s portfolio also features Steel Dynamics’ shares, one of the leading steel producers in the United States. In fact, its manufacturing capacity is 13 million tonnes of steel. The giant is in good financial shape and shows considerable profit and growth potential. Forex strategists pay attention to every aspect when it comes to Steel Dynamics, especially dividends and stock buybacks. Steel Dynamics has been expanding its dividends for the past 10 years. Nowadays, despite economic woes, the firm keeps paying dividends to its shareholders. In the coming 12 months, Steel Dynamics is likely to see its share value grow by 22.7%.