Top 10 Warren Buffett Dividend Stocks

Posted on 10 October 2011 by DividendInvestr

Warren Buffett, the “Sage of Omaha”, is one of the world’s premier fund managers. The first 50 years of his career was record-breaking, earning him nods from his investing peers, as well as the mainstream media. His performance since the turn of the century has been down to say the least; Warren Buffett’s alpha dropped from 10-12% per year to around zero. However, he still has a good eye for large cap, dividend yielding stocks. Here is a list of his top 10 dividend stocks:

1. Coca-Cola Company (KO), the famous soft drink company, is Buffett’s largest stock. His position is valued at $13.4 billion. It recently traded at $65.42 and has a dividend yield of 2.80%. The stock has a $150.21 billion market cap and a price to earnings ratio of 12.19. Boykin Curry of Eagle Capital Management is also a fan.
2. Procter & Gamble Co. (PG) is a global consumer packaged goods company and it is Buffett’s fourth largest position at $4.88 billion. PG has a market cap of $172.67 billion and a dividend yield of 3.30%. It recently traded at $62.84 and has a price to earnings ratio of 15.99.
3. Kraft Foods, Inc. (KFT) is Buffett’s fifth largest position; he owns a $3.5 billion stake in the company. KFT is a food manufacturing company and has a market cap of $58.42 billion and a price to earnings ratio of 18.90. It has a dividend yield of 3.50%. It recently traded at $33.08 a share.
4. Johnson & Johnson (JNJ) is one of the world’s leading healthcare companies. Buffett owns a $2.8 billion position in the company. JNJ offers a dividend yield of 3.60%. It boasts a market cap of $170.12 billion and a price to earnings ratio of 14.85. JNJ recently traded at $62.08.
5. ConocoPhillips (COP) is a global energy company. It has a dividend yield of 4.20% and a market cap of $83.74 billion. COP has a 7.69 price to earnings ratio; it recently traded at $60.99 per share. Buffett owns a more than $2 billion stake in the company.
6. M&T Bank Corporation (MTB) provides commercial and retail banking. It has a 4.00% dividend yield and recently traded at $68.52 a share. It has a market cap of $8.61 billion and a price to earnings ratio of 9.66. Buffett owns $471.7 million in the company. MTB is also a favorite of Jean-Marie Eveillard, First Eagle Investment Management.
7. Sanofi Aventis (SNY) is a global healthcare services company. Buffett owns $163 million in the company. SNY offers a 4.00% dividend yield and a price to earnings ratio of 14.61. It has a market cap of $85.58 billion and recently traded at $31.88.
8. General Electric Co. (GE) is a diverse company; it provides media, technology and financial services worldwide. Buffett owns $146.7 million in the company. GE has a dividend yield of 3.990% and recently traded at $14.69 per share. It has a $155.72 billion market cap and a price to earnings ratio of 11.56.
9. United Parcel Service, Inc. (UPS) is a global package delivery service that delivers a 3.30% dividend yield. It has a market cap of $61.02 billion and a price to earnings ratio of 15.33. UPS is Buffett’s 19th largest position by value, at $104 million. It recently traded for $62.22/share.
10. GlaxoSmithKline (GSK), the drug manufacturer, is Buffett’s 21st largest position at $64.8 million. GSK has an impressive dividend yield of 5.00%. It recently traded at $40.53. GSK boasts a market cap of $103.56 billion and a price to earnings ratio of 20.66. Ken Fisher, Fisher Asset Management is also a fan.

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