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Warren Buffett's top dividend stocks offer ideas for a defensive posture

  • Utility stocks are the only group that's been rising regularly in the recent selloff, but another group of stocks that might start to interest buyers: Warren Buffett's top dividend yielding stocks from the Berkshire Hathaway (BRK.A, BRK.B) portfolio.
  • Coca-Cola (KO) is a long-time Berkshire holding, fitting with Buffett's buy and hold forever strategy; the dividend yields 3.15%.
  • Procter & Gamble (PG) is a long-time holding; it just announced another 7% dividend hike and yields 3.18%.
  • Wells Fargo (WFC) is Buffett’s favorite bank and is the largest position in the Berkshire portfolio; while it yields only ~2.4% now, it telegraphed a quarterly dividend raise to $0.35/share for a new yield of 2.87%.
  • Wal-Mart (WMT) has grown to a stake of nearly 50M shares, and it raised its quarterly payout to $0.48/share, generating a new yield of 2.45%.
  • Buffett owns ~40M shares of GM, where the dividend is relatively new but the drop in the stock price now has its yield just above 3.5%.
  • GE was added as a larger stake after Berkshire’s warrant conversions, but the position is still worth only ~$250M; the dividend yields ~3.4%.
  • Buffett still owns 11M shares of ConocoPhillips (COP; 3.94% yield) but has moved more cash into rival Exxon Mobil (XOM; 2.7% yield).
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Comments (7)
  • vmetla
    , contributor
    Comments (69) | Send Message
     
    All these are great dividend stocks.
    8 Apr, 08:44 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Except GM where the dividend could be in jeopardy
    when the lawyers get through with their demolition work.
    8 Apr, 10:39 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (569) | Send Message
     
    Same goes for WFC with additional capital requirements.
    9 Apr, 12:42 AM Reply Like
  • financeminister
    , contributor
    Comments (794) | Send Message
     
    yup, he loves'em those dividends and explains in his latest newsletter why he loves anything that pays him cash irrespective of how the value of the asset fluctuates... yet he plays down paying a small dividend for BRK shareholders even though BRK is not a growth stock but a value stock that has underperformed the S&P500 during this bull run.... can't blame him for wanting to have all that cash.

     

    While everyone loves KO over the last few years, KO has a YoC of around 60% for him so he will never get rid of that cash printing machine irrespective of how the shareprice performs.
    8 Apr, 10:21 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (569) | Send Message
     
    Funny he loves dividends but Berkshire does not pay a dividend.
    9 Apr, 12:43 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8613) | Send Message
     
    I wonder how Warren feels about increasing the tax rate on dividends?

     

    Hmmm...
    8 Apr, 11:04 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (569) | Send Message
     
    Most of his dough is in Berkshire that does not pay a dividend. Carried interest is still at the lower rate.
    9 Apr, 12:45 AM Reply Like
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