Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

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.

We compiled a list of 10 Warren Buffett stocks that are relatively defensive because they have Total Debt / Equity ratio of below 0.85 and beta of lower than 0.9 (market data is sourced from Finviz).

1. Wal-Mart Stores, Inc. (NYSE:WMT): Wal-Mart operates retail stores worldwide. WMT recently traded at $52.36 and has a 2.8% dividend yield. WMT increased its annualized dividend per share from $0.95 to $1.46 in the past three years. WMT gained 1.38% during the past 12 months. WMT has a market cap of $179.9 billion and P/E ratio of 11.8. The stock has a Total Debt / Equity ratio of 0.84 and Beta of 0.31. Buffett had $2.1 billion invested in WMT shares. Wal-Mart is also a favorite of Eagle Capital.

2. Procter & Gamble Co. (NYSE:PG): Procter & Gamble is a multinational company providing a wide variety of consumer goods worldwide. PG recently traded at $62.6 and has a 3.4% dividend yield. PG raised its annualized dividend per share from $1.60 to $2.10 in the past three years. PG gained 5.27% during the past 12 months. PG has a market cap of $171.3 billion and P/E ratio of 15.9. The stock has a Total Debt / Equity ratio of 0.47 and Beta of 0.48. Buffett had $4.9 billion invested in PG shares. Warren Buffett has the largest position in PG. Jim Simons, Ken Fisher, Bill Miller and D.E. Shaw also have large PG positions in their portfolios.

3. Exxon Mobil Corp (NYSE:XOM): Exxon Mobil is a giant U.S. company that manufactures and sells branded motor fuels and related products worldwide. XOM increased its annualized dividend per share from $1.60 to $1.88 in the past three years. XOM has a 3-Year Annualized Dividend Growth of 5.52%. XOM recently traded at $73.68 and has a 2.6% dividend yield. XOM gained 21.94% during the past 12 months. XOM has a market cap of $353.2 billion and P/E ratio of 9.6. The stock has a Total Debt / Equity ratio of 0.11 and Beta of 0.52. Buffett had $34 million invested in XOM shares. Phill Gross and Ken Fisher are large XOM holders with nearly $600 million worth of positions.

4. Kraft Foods Inc. (KFT): Kraft Foods provides snacks, confectionery, and quick meal products worldwide. KFT recently traded at $34.99 and has a 3.4% dividend yield. KFT gained 13.32% during the past 12 months. KFT has a market cap of $61 billion and P/E ratio of 19.8. The stock has a Total Debt / Equity ratio of 0.76 and Beta of 0.55. Buffett had $3.5 billion invested in KFT shares.

5. Coca Cola (NYSE:KO): Coca-Cola is one of the largest non-alcoholic beverage providers in the world. KO recently traded at $70.9 and has a 2.7% dividend yield. KO increased its annualized dividend per share from $1.14 to $1.88 in the past three years. The stock has a 3-Year Annualized Dividend Growth of 7.34%. KO gained 24.97% during the past 12 months. KO has a market cap of $160.2 billion and P/E ratio of 13. The stock has a Total Debt / Equity ratio of 0.75 and Beta of 0.58. Buffett had $13.4 billion invested in KO shares. Louis Navellier of Navellier & Associates recently reduced his position by 4% (see more of Navellier’s picks here).

6. Johnson & Johnson (NYSE:JNJ): Johnson & Johnson provides consumer healthcare and pharmaceutical products worldwide. It has more than 250 operating companies conducting business worldwide. JNJ recently traded at $64.35 and has a 3.6% dividend yield. JNJ raised its annualized dividend per share from $1.84 to $2.28 in the past three years. The stock has a 3-Year Annualized Dividend Growth of 7.41%. JNJ gained 8.11% during the past 12 months. JNJ has a market cap of $174.6 billion and P/E ratio of 15.3. The stock has a Total Debt / Equity ratio of 0.3 and Beta of 0.59. Buffett had $2.8 billion invested in JNJ shares. Jim Simons’ Medallion Fund (he is arguably the best hedge fund manager we have come across) puts more of his money in Johnson & Johnson than in any other equity position.

7. Costco Wholesale Corp. (NASDAQ:COST): Costco Wholesale Corporation operates self-service warehouses. COST recently traded at $83.02 and has a 1.2% dividend yield. COST gained 35.46% during the past 12 months. COST has a market cap of $35.9 billion and P/E ratio of 25.6. The stock has a Total Debt / Equity ratio of 0.18 and Beta of 0.74. Buffett had $352 million invested in COST shares.

8. Bank of New York Mellon Corp. (NYSE:BK): The Bank of New York Mellon provides various products and services worldwide. BK recently traded at $21.04 and has a 2.5% dividend yield. BK lost 17.73% during the past 12 months. BK has a market cap of $25.6 billion and P/E ratio of 9.6. The stock has a Total Debt / Equity ratio of 0.8 and Beta of 0.76. Buffett had $46 million invested in BK shares.

9. M & T Bank Corporation (NYSE:MTB): M&T Bank Corporation provides commercial and retail banking services. MTB recently traded at $74.13 and has a 3.8% dividend yield. MTB lost 13.63% during the past 12 months. MTB has a market cap of $9.2 billion and P/E ratio of 10.3. The stock has a Total Debt / Equity ratio of 0.83 and Beta of 0.81. Buffett had $472 million invested in MTB shares.

10. Sanofi Aventis (NYSE:SNY): Sanofi is a global, diversified healthcare company that discovers, develops and distributes therapeutic solutions focused on patients’ needs. SNY recently traded at $33.54 and has a 5.6% dividend yield. SNY gained 6.69% during the past 12 months. SNY has a market cap of $88.7 billion and P/E ratio of 14.7. The stock has a Total Debt / Equity ratio of 0.38 and Beta of 0.88. Buffett had $163 million invested in SNY shares. Cramer also continually recommends buying this high-yielding pharmaceutical because of its low valuation. Ken Fisher of Fisher Asset Management owns over 14,750,000 shares (see more of Fisher’s picks here).

Source: Warren Buffett's 10 Favorite Defensive Stock Picks