Warren Buffett's 15 Favorite High-Yielding Stock Picks

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 |  Includes: BK, COP, GCI, GE, GHC, GSK, JNJ, KO, MDLZ, MTB, PG, SNY, UPS, WMT, XOM
by: Insider Monkey

Warren Buffett is one of the top investors of the past century. His every move is closely followed by investors and mainstream media. Unfortunately, he doesn't trade very often. When he buys stocks, he holds them for years. So investors who are worried about short-term returns can't really gather much intelligence from Buffett's holdings. His track record for the first 50 years of his investment career is absolutely amazing. Unfortunately, for the past 5-10 years his alpha went down to zero from around 10-12 percent per year.

We compiled Buffett’s Berkshire high-dividend 13F holdings at the end of June. We required a minimum dividend yield of 2.7%; yields were obtained from Finviz (see Buffett's portfolio here). Here are Buffett's favorite high dividend stock picks:

  1. Sanofi Aventis (NYSE:SNY): Sanofi-Aventis provides therapeutic solutions to improve the lives of everyone. SNY recently traded at $34.09 and has a 5.3% dividend yield. SNY gained 24.14% during the past 12 months. The stock has a market cap of $92 billion and P/E ratio of 14.7. Buffett had $163 million invested in SNY shares.
  2. GlaxoSmithKline (NYSE:GSK): GlaxoSmithKline provides pharmaceutical products and health-related consumer products worldwide. GSK recently traded at $40.82 and has a 5.3% dividend yield. GSK gained 14.63% during the past 12 months. The stock has a market cap of $104.1 billion and P/E ratio of 20. Buffett had $65 million invested in GSK shares. Bruce Berkowitz’s Fairholme initiated $7.3 million GSK position during first quarter of 2011. Five-year average dividend yield of GSK is 4.40%.
  3. ConocoPhillips (NYSE:COP): ConocoPhillips is an integrated energy company operating worldwide. COP recently traded at $63.59 and has a 4.2% dividend yield. COP gained 22.29% during the past 12 months. The stock has a market cap of $87.3 billion and P/E ratio of 8. Buffett had $2.8 billion invested in COP shares.
  4. M & T Bank Corporation (NYSE:MTB): M&T Bank Corporation provides commercial and retail banking services. MTB recently traded at $69.86 and has a 4% dividend yield. MTB lost 19.54% during the past 12 months. The stock has a market cap of $8.8 billion and P/E ratio of 9.9. Buffett had $472 million invested in MTB shares.
  5. General Electric Co. (NYSE:GE): General Electric provides technology, media, and financial services worldwide. GE recently traded at $15.09 and has a 4% dividend yield. GE gained 3.5% during the past 12 months. The stock has a market cap of $160 billion and P/E ratio of 11.7. Buffett had $147 million invested in GE shares.
  6. Johnson & Johnson (NYSE:JNJ): Johnson & Johnson provides various health care products worldwide. JNJ recently traded at $63.14 and has a 3.6% dividend yield. JNJ gained 11.38% during the past 12 months. The stock has a market cap of $173 billion and P/E ratio of 15.1. Buffett had $2.8 billion invested in JNJ shares. JNJ is one of the top 10 most popular stocks among hedge funds. Hedge funds had $4.7 billion in JNJ at the end of March.
  7. Kraft Foods Inc. (KFT): Kraft Foods provides snacks, confectionery, and quick meal products worldwide. KFT recently traded at $33.45 and has a 3.5% dividend yield. KFT gained 19.17% during the past 12 months. The stock has a market cap of $59.1 billion and P/E ratio of 19.2. Buffett had $3.5 billion invested in KFT shares.
  8. Procter & Gamble Co. (NYSE:PG): The Procter & Gamble Company provides consumer packaged goods worldwide. PG recently traded at $60.96 and has a 3.4% dividend yield. PG gained 4.89% during the past 12 months. The stock has a market cap of $167.5 billion and P/E ratio of 15.5. Buffett had $4.9 billion invested in PG shares.
  9. United Parcel Service Inc. (NYSE:UPS): United Parcel Service provides transportation, logistics, and financial services worldwide. UPS recently traded at $61.7 and has a 3.4% dividend yield. UPS went down -2.45% during the past 12 months. The stock has a market cap of $60.5 billion and P/E ratio of 15.2. Buffett had $104 million invested in UPS shares.
  10. Gannett Inc. (NYSE:GCI): Gannett is a media and marketing solutions company operating worldwide. GCI recently traded at $10.05 and has a 3.2% dividend yield. GCI went down -17.56% during the past 12 months. The stock has a market cap of $2.4 billion and P/E ratio of 4.7. Buffett had $25 million invested in GCI shares.
  11. Coca Cola (NYSE:KO): The Coca-Cola Company provides nonalcoholic beverage concentrates and syrups worldwide. KO recently traded at $67.1 and has a 2.8% dividend yield. KO gained 24.88% during the past 12 months. The stock has a P/E ratio of 12.5. Buffett had $13.4 billion invested in KO shares. Between 1988 and 2011, the market cap of Coca Cola rose from $18 billion to $154.1 billion. Coca-Cola recently traded at $65.21 and Buffett's stake in the company is 8.7%. Buffett made more than $7 billion with his Coca-Cola investment.
  12. Wal-Mart Stores, Inc. (NYSE:WMT): Wal-Mart Stores operates retail stores worldwide. WMT recently traded at $52.3 and has a 2.8% dividend yield. WMT gained 6.91% during the past 12 months. The stock has a market cap of $181.6 billion and P/E ratio of 12.2. Buffett had $2.1 billion invested in WMT shares.
  13. Washington Post Co. (WPO): Washington Post is a diversified education and media company operating worldwide. WPO recently traded at $338.51 and has a 2.8% dividend yield. WPO went down -0.41% during the past 12 months. The stock has a market cap of $2.7 billion and P/E ratio of 12.9. Buffett had $724 million invested in WPO shares.
  14. Bank of New York Mellon Corp. (NYSE:BK): Bank of New York Mellon is a financial services company operating worldwide. BK recently traded at $18.95 and has a 2.7% dividend yield. BK went down -21.89% during the past 12 months. The stock has a market cap of $23.4 billion and P/E ratio of 8.8. Buffett had $46 million invested in BK shares.
  15. Exxon Mobil Corp (NYSE:XOM): Exxon Mobil Corporation is an integrated energy company. XOM recently traded at $69.8 and has a 2.7% dividend yield. XOM gained 21.37% during the past 12 months. The stock has a market cap of $339.4 billion and P/E ratio of 9.2. Buffett had $34 million invested in XOM shares.
    XOM is one of the 11 energy companies hedge funds are buying like crazy (See entire list
    here). Sixteen hedge funds had XOM among their top 10 holdings. Hedge funds collectively own 1% of XOM’s outstanding shares. Phill Gross’ Adage and Ken Fisher were among the fund managers who are bullish about XOM.

Disclosure: I am long COP.