There are a number of good dividend shares on the ASX. I think there are some dividend shares that Warren Buffett would really like.
Warren Buffett wouldn't just pick any dividend share. He only goes for ones in industries that he understands with long-term earnings potential and at a good price.
Here are three Warren Buffett dividend shares you can buy right now:
Macquarie Group Ltd (ASX: MQG)
Warren Buffett has had a long affinity for financial shares. Berkshire Hathaway has been a large shareholder for most of the major US banks.
The Macquarie share price is down around 34% since the falls began in February 2020.
Since the GFC Macquarie has been one of the best financial shares on the ASX with strong share price appreciation and dividend growth.
I think Macquarie is very likely to reduce its dividend this year, but not by as much as the domestic ASX banks like Westpac Banking Corp (ASX: WBC).
Using the trailing dividend yield, it has a grossed-up yield of about 7%. This coronavirus period could be opportunistic to buy shares of Macquarie.
APA Group (ASX: APA)
APA Group reduced its earnings guidance a little today, but the distribution guidance remains strong and unchanged.
One of Berkshire Hathaway's biggest divisions is energy.
The infrastructure business described itself as a stable, low risk business and it's an essential service provider.
What assets does APA own? APA Group owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation's natural gas usage.
With the distribution guidance for FY20 still being 50 cents per unit, it offers a distribution yield of 4.6%.
Coles Group Limited (ASX: COL)
Warren Buffett and Charline Munger have long been fans of Costco.
Coles is not the same as Costco, but it's close enough that it can be worth thinking about. It is doing well during the coronavirus because more people are buying their food from supermarkets rather than other food places like restaurants. And there's all the stocking up buying too.
The supermarket company was part of a strong dividend culture in Wesfarmers Ltd (ASX: WES) and that mentality is likely to continue for the foreseeable future.
It currently offers a trailing grossed-up dividend yield of 5.8%.
Foolish takeaway
At the current prices I'd probably be inclined to go for APA for its very defensive nature. We don't know if the share market is going to drop again, so for the meantime I'd rather go for businesses that are likely to hold up well.
