Warren Buffett appears to be on track to beat the S&P 500 again in 2024, but not by much. Berkshire Hathaway's shares are up year to date only around 3% more than the S&P.

However, some of the stocks in Berkshire's portfolio are faring significantly better. These three dividend stocks owned by Buffett have trounced the market this year. Can they do it again in 2025?

1. American Express

Buffett has owned shares of American Express (AXP -0.97%) for decades. The credit card giant ranks as the second-largest holding in Berkshire's portfolio. It's also Buffett's best-performing stock of 2024 so far, with an impressive gain of 56%.

AmEx's dividend isn't as impressive. Its forward dividend yield currently stands at only 0.96%. Of course, with the tremendous return the stock has delivered this year, few would complain about the paltry dividend payout.

Quarter after quarter in 2024, American Express has reported strong results. The company now has a streak of 10 consecutive quarters of generating record revenue. It's attracting millions of new card members while sustaining a high retention rate for existing members. 

Wall Street doesn't expect AmEx to keep the sizzling momentum going in 2025, though. The average analysts' 12-month price target is a little under the current share price. Only eight of the 27 analysts surveyed by LSEG in December recommended the stock as a "buy" or "strong buy." 

However, I think American Express could perform better than analysts predict. Its valuation remains relatively attractive with shares trading below 19 times forward earnings despite the huge return this year. The prospects of deregulation and corporate tax cuts in a second Trump term could work in the company's favor. New products such as the U.S. Consumer Gold Card could fuel growth as well. 

2. Citigroup

Citigroup (C -0.49%) is also handily beating the S&P 500 this year. Shares of the big financial services company have soared 33% even with a recent pullback following the Federal Reserve's hinting that fewer rate cuts than initially expected would be forthcoming in 2025.

Unlike American Express, Citigroup offers a dividend that many income investors will find attractive. Its forward dividend yield is 3.27%. Although the COVID-19 pandemic caused Citigroup to hold its dividend payout steady for a while, the company has grown its dividend by a jaw-dropping compound annual growth rate of around 49% since 2014.

Citigroup's cheap valuation appears to have been a big draw for investors in 2024. Even after its gains, the stock still trades at around 9.2 times forward earnings and only 67% of its book value. 

It's not surprising, therefore, that Wall Street continues to view this stock as a great pick. The consensus 12-month price target for Citigroup reflects an upside potential of 17%. I think analysts are correct: Citigroup should keep up its winning ways in 2025. 

3. Capitol One Financial

You might spot a pattern here. Yet another financial stock has been one of Buffett's top performers in 2024. Shares of Capitol One Financial (COF -1.17%) have jumped close to 33%, putting it neck-and-neck with Citigroup.

Although Capitol One is easily outgaining the S&P 500, its forward dividend yield of 1.37% isn't much higher than the index's yield. The company's dividend track record is spotty, too, with a dividend cut in 2020 and no dividend increase since 2021. 

Analysts don't have especially great expectations for Capitol One in 2025. The average price target is less than 7% higher than the current share price. Less than half of the 21 analysts surveyed by LSEG in December recommend buying the stock.  

However, I suspect Capitol One could beat the S&P 500 again next year if its acquisition of Discover Financial Services goes through. The company recently cleared one key regulatory hurdle for the deal with the Delaware State Bank Commissioner approving the acquisition. Capitol One expects the transaction to close in early 2025 barring a regulatory setback.