5 High-Yield Dividend Stocks in Warren Buffett's Secret Portfolio You Can Buy Right Now

Where can you find a list of Warren Buffett stocks? You could look at Berkshire Hathaway's (BRK.A -0.72%) (BRK.B -0.79%) 13F filings to the U.S. Securities and Exchange Commission. But that won't give you all of Buffett's stocks. That's because the legendary investor also has a "secret portfolio." I'm referring to stocks held by Berkshire's subsidiary, New England Asset Management (NEAM).

NEAM owns quite a few stocks that offer especially juicy dividend yields. Some are better picks than others, though. Here are five high-yield dividend stocks in Buffett's secret portfolio that you can buy right now.

1. AbbVie

AbbVie (ABBV -3.72%) belongs to the elite group of stocks known as Dividend Kings. The big drugmaker has increased its dividend for 51 consecutive years. Its dividend yield currently stands at nearly 3.7%. That's well above the U.S. 10-year Treasury yield of 3.3% -- the most common benchmark for defining a high-yield stock.

The main knock against AbbVie is that sales for its top-selling drug, Humira, are falling now that it faces biosimilar competition in the U.S. However, the company has plenty of other fast-growing products in its lineup. AbbVie should be able to deliver solid total returns over the long term.

2. Ares Capital

You might not have heard of Ares Capital (ARCC 0.48%), but it's a stock to have on your radar screen. Ares Capital ranks as the largest publicly traded business development company (BDC) and focuses on providing financing to mid-market businesses. It offers a sky-high dividend yield of over 10.6%. 

In large part because of this exceptional dividend, Ares Capital has generated a total return that's trounced the S&P 500 since its initial public offering in 2004 and in recent years. The nature of the company's business comes with risks that its clients could default on loans. However, the problems in the banking industry over the last couple of months could cause some regional banks to tighten credit and in turn drive more customers to Ares.

3. Pfizer

Pfizer (PFE 0.52%) is another big pharma company in Buffett's secret portfolio with a strong dividend. Its dividend yield currently stands at 3.95%.

Like AbbVie, Pfizer faces some challenges over the near term. Sales for the company's COVID-19 vaccine Comirnaty and antiviral therapy Paxlovid are expected to sink in 2023. Several other of Pfizer's best-selling products lose exclusivity over the next few years. However, Pfizer stock is looking increasingly more attractive thanks to its low valuation and a string of regulatory wins.

4. US Bancorp

Both Berkshire Hathaway and NEAM own shares of US Bancorp (USB 0.35%). The regional bank's dividend yield has grown significantly since early last year and is now close to 5.4%. Although US Bancorp has increased its dividend, the yield has soared primarily because its share price has tumbled in the aftermath of the banking crisis.

I think, though, that US Bancorp is a screaming buy right now. The bank's financial position remains strong. It's a technological innovator. The recent acquisition of Union Bank should also provide a tailwind. The stock could be volatile for a while but appears to be a good bet to deliver market-beating total returns over the long run.

5. Verizon Communications

Buffett used to own shares of Verizon Communications (VZ 1.45%) in Berkshire's portfolio. That's no longer the case, but he still has a stake in the telecom giant through NEAM. Verizon's dividend yield tops 6.6%, making it one of the legendary investor's top dividend stocks.

While Verizon has been a longtime favorite for income investors, growth investors haven't had much to like in recent years. Don't underestimate the company's growth potential, though. Verizon has solid opportunities to increase its sales to business customers. It also should be able to expand its fixed wireless broadband revenue from individual consumers.