Is the Warren Buffett Correction Coming? Buy His 4 Safest Dividend Stocks Now

Core Viewpoint - The article discusses the potential for a market correction following three years of double-digit gains, suggesting that investors should consider buying four of Warren Buffett's safest dividend stocks as a defensive strategy against an overvalued market [1]. Group 1: Market Overview - The stock market has experienced three consecutive years of double-digit gains, leading to speculation about an impending correction [1]. - Berkshire Hathaway has been a net seller of stocks for 12 consecutive quarters, indicating a cautious stance on the market's valuation [1]. - Warren Buffett's cash reserves have increased to between $354 billion and $381 billion, reflecting his belief that the market is overvalued [1]. Group 2: Berkshire Hathaway's Leadership Transition - Warren Buffett stepped down as CEO of Berkshire Hathaway on December 31, 2025, after leading the company for over six decades [1]. - Greg Abel has taken over as CEO, with Buffett remaining as chairman and continuing to influence investment decisions [1]. - More than 65% of Berkshire's portfolio is concentrated in just six stocks, highlighting a focused investment strategy [1]. Group 3: Recommended Stocks - Chevron Corporation: A major player in the energy sector with a 3.71% dividend, recently raised by 4.1%. Berkshire owns 130 million shares, representing 6.6% of the float [1]. - The Coca-Cola Company: A long-time holding of Buffett, with a 2.54% dividend and a stock price increase of 17.1% in 2025. Berkshire holds 400 million shares, accounting for 9.3% of the float [2]. - Domino's Pizza: A multinational pizza chain with a 1.72% dividend. Berkshire owns 9.9% of the float, and the stock is rated with a target price of $510 [2]. - Kroger: A grocery chain with a 1.98% dividend, representing a conservative investment. Berkshire holds 7.9% of the float [2].