Warren Buffett Bought These 4 Dividend Stocks Years Ago. Here's What $1,000 in Each Would Be Worth Today.
2026-10-11 18:15
•Reuben Gregg Brewer •The Motley Fool
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Buffett’s Dividend Stocks: Lessons for SA Investors
Warren Buffett’s buy-and-hold bets on dividend payers highlight patience and quality—what that means for South African markets.
Buffett’s success with dividend-paying stocks like Coca-Cola and American Express shows the power of holding good businesses through thick and thin. While these US examples are distant from the JSE, the principle stands: quality, resilient firms that generate steady cash flow can deliver outsized returns over time. South African banks—Standard Bank, FirstRand, Nedbank—offer a comparable proposition. They have robust capital, pay dividends, and benefit from rising interest rates, which should support profits in a higher-rate environment. Just like Buffett’s picks, South African banks are not glamour stocks but steady earners with decent growth prospects. The recent rand weakness also makes these counters more attractive for foreign investors. One caveat: the local economy is fragile, and political risk is higher than in the US. If growth stalls or regulations tighten unexpectedly, bank earnings could suffer, derailing the thesis. Still, the lesson is clear: patience in quality pays off. this is just our opinion and not financial advice
Buy South African banks selectively, focusing on well-managed names like Standard Bank and FirstRand, and hold for the long term, using rand weakness to add exposure. Trim or avoid highly cyclical or speculative stocks.
- Standard Bank
- FirstRand
- USD/ZAR
- Local economic slowdown
- Political/regulatory uncertainty
7/10
The article examines Warren Buffett's long-term investment strategy through four dividend stocks: Coca-Cola ($1,000 invested in 1989 worth ~$43,000 with dividend reinvestment), American Express ($1,000 in 1995 worth ~$54,560 with reinvestment), Bank of America ($1,000 in 2018 worth ~$2,220 with reinvestment), and Chevron ($1,000 in 2021 worth ~$3,185 with reinvestment). The analysis demonstrates that Buffett's buy-and-hold approach to well-run businesses at attractive prices has generated substantial returns, with longer-held positions significantly outperforming the S&P 500.
Our take is based on reporting first published by The Motley Fool.