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17-09-2015, 03:08 PM
Warren Buffett's Top 10 Dividend-Paying Stocks for 2015
By Emily Stewart
NEW YORK (TheStreet) -- When it comes to dividends, Warren Buffett won't dish them out -- but he will take them.
Buffett has for years maintained a strict no-dividends policy at Berkshire Hathaway (BRK.A) (BRK.B). The conglomerate has only paid one dividend during his tenure, in 1967, and he has joked that he "must have been in the bathroom" when the decision was made.
"The question is about evaluating Berkshire when it doesn't pay any dividends," the billionaire said in a 1998 lecture at the University of Florida Business School. "And it won't pay dividends, either. That's a promise I can keep. All you get with Berkshire stock is that you can stick it in your safe deposit box, and every year you take it out and fondle it."
The irony isn't lost on him.
"A number of Berkshire shareholders -- including some of my good friends -- would like Berkshire to pay a cash dividend. It puzzles them that we relish the dividends we receive from most of the stocks that Berkshire owns, but pay out nothing ourselves," he wrote in his 2012 letter to investors.
If you're looking for dividends from the Oracle of Omaha, you won't find them at Berkshire Hathaway -- but you will uncover them in a number of his top stocks.
We pulled 10 dividend-paying stocks from Buffett's Berkshire Hathaway portfolio, according to the firm's most recent 13F filing, which reflects holdings as of June 30, 2015. Each comprises at least 1% of his public equity portfolio and has a dividend yield of 1.3% or higher.
While Buffett won't distribute dividends to Berkshire Hathaway shareholders, he has no qualms about collecting them from others. Most of the companies in his investment portfolio make regular dividend payments.
10. Goldman Sachs
Global investment banking, securities and investment management company Goldman Sachs (GS) has a 1.3% dividend yield. It makes a quarterly distribution of 65 cents, which it increased from 60 cents earlier this year.
Buffett's stake in the firm dates back to 2013, when he received around $2 billion worth of shares through a warrants deal made during the financial crisis in 2008. He has left the position untouched since, and as of June 30, the 12.6 million-share position comprises 2.5% of his public equity portfolio.
9. American Express
American Express (AXP - Get Report) has a 1.4% dividend yield. It recently upped its payout to 29 cents per share from 26 cents per share.
Buffett is a long-time shareholder of credit card and payments giant American Express. Comprising 11% of his portfolio, the company is his No. 4 holding. Buffett owns 151.6 million shares as of June 30.
He discussed the company at the 2015 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska. "American Express is still a very, very special company," he said.
8. U.S. Bancorp
Financial services company U.S. Bancorp (USB) has a 2.3% dividend yield. It upped its dividend to 25.5 cents from 24.5 cents this year and has been making quarterly distributions for more than 15 years.
U.S. Bancorp has a 3.5% allocation in Buffett's Berkshire Hathaway portfolio, making it his number seven holding.
7. Deere
Deere (DE) has maintained its quarterly dividend at 60 cents for more than a year, increasing it from 51 cents in 2014. The agriculture and forestry machinery manufacturer's dividend yield is 2.6%.
Buffett invested in Deere & Company in 2012 and raised eyebrows when regulatory filings revealed he had upped his stake significantly in late 2014. He now owns more than 17 million of the company's shares, giving it a 1.6% allocation in his portfolio.
6. Wells Fargo
Wells Fargo (WFC - Get Report) has a quarterly dividend history that stretches across more than two decades. It slashed its dividend significantly in the midst of the 2009 financial crisis, cutting it to 5 cents per share. It has since gradually upped its distribution, which is now 37.5 cents. The financial services company's dividend yield is 2.6%.
Buffett's top holding, Wells Fargo has a 24.7% allocation in the billionaire's public equity portfolio. Berkshire owns 470.3 million shares as of June 30. Buffett has been singing the company's praises for years and in his 1990 letter to Berkshire shareholders called it a "superbly-managed, high-return banking operation."
5. Wal-Mart
With a 49-cent dividend, discount retail giant Walmart (WMT - Get Report) has a 2.7% yield. It last upped its payout in early 2015 and is a dividend aristocrat, meaning it has increased its quarterly distribution across at least 25 consecutive years.
Walmart is Buffett's No. 5 holding and has a 4% allocation in his portfolio. He owns 60.4 million shares as of the most recently reported quarter.
4. Coca-Cola
Coca-Cola's (KO - Get Report) 33-cent dividend gives it a 3.2% dividend yield. The company last upped its quarterly payout in late 2014.
Buffett has for a long time been one of the international beverage corporation's biggest fans, going as far to as declare in a CNBC interview that he is "one quarter Coca-Cola." At the company's 2013 shareholders meeting, Buffett said that he had never sold a share of Coke stock and that he never would.
"I'm the kind of guy who likes to bet on sure things," he said. "No business has ever failed with happy customers -- and you're selling happiness."
As of June 30, Buffett owns 400 million shares of Coke, which comprises 14.7% of the Berkshire Hathaway portfolio and is its second-largest holding.
3. IBM
IBM (IBM) has a 3.4% dividend yield. Its current quarterly payout is $1.30, increased from $1.10 earlier this year.
Buffett's No. 3 position with 79.6 million shares comprising 12.1% of his portfolio, IBM has been among his Berkshire stock picks since 2011. He boosted his stake during the first quarter of 2015 and at the most recent shareholders meeting said he has no regrets over picking IBM over tech rival Apple (AAPL).
2. Procter & Gamble
Consumer goods company Procter & Gamble (PG) has a 3.5% dividend yield. It increased its quarterly payout to 66.29 cents from 64.36 cents this year.
Buffett is a long-time P&G shareholder and in 2014 surprised some when he entered into a somewhat unique deal with the company to buy its Duracell battery business. P&G is his sixth largest position, comprising 3.9% of his portfolio. Buffett owns 52.8 million shares as of June 30.
1. General Motors
General Motors (GM - Get Report) boasts an attractive 4.6% dividend yield. The automaker's current distribution is 36 cents, recently increased from 30 cents.
Buffett bought into the automaker in 2012 and currently holds 41 million shares, giving the company a 1.3% allocation in his holdings. The Oracle of Omaha has in the past voiced his support for CEO Mary Barra and in a 2014 CNN interview called her "dynamite" after a lunch meeting. "I was really impressed," he said.
By Emily Stewart
NEW YORK (TheStreet) -- When it comes to dividends, Warren Buffett won't dish them out -- but he will take them.
Buffett has for years maintained a strict no-dividends policy at Berkshire Hathaway (BRK.A) (BRK.B). The conglomerate has only paid one dividend during his tenure, in 1967, and he has joked that he "must have been in the bathroom" when the decision was made.
"The question is about evaluating Berkshire when it doesn't pay any dividends," the billionaire said in a 1998 lecture at the University of Florida Business School. "And it won't pay dividends, either. That's a promise I can keep. All you get with Berkshire stock is that you can stick it in your safe deposit box, and every year you take it out and fondle it."
The irony isn't lost on him.
"A number of Berkshire shareholders -- including some of my good friends -- would like Berkshire to pay a cash dividend. It puzzles them that we relish the dividends we receive from most of the stocks that Berkshire owns, but pay out nothing ourselves," he wrote in his 2012 letter to investors.
If you're looking for dividends from the Oracle of Omaha, you won't find them at Berkshire Hathaway -- but you will uncover them in a number of his top stocks.
We pulled 10 dividend-paying stocks from Buffett's Berkshire Hathaway portfolio, according to the firm's most recent 13F filing, which reflects holdings as of June 30, 2015. Each comprises at least 1% of his public equity portfolio and has a dividend yield of 1.3% or higher.
While Buffett won't distribute dividends to Berkshire Hathaway shareholders, he has no qualms about collecting them from others. Most of the companies in his investment portfolio make regular dividend payments.
10. Goldman Sachs
Global investment banking, securities and investment management company Goldman Sachs (GS) has a 1.3% dividend yield. It makes a quarterly distribution of 65 cents, which it increased from 60 cents earlier this year.
Buffett's stake in the firm dates back to 2013, when he received around $2 billion worth of shares through a warrants deal made during the financial crisis in 2008. He has left the position untouched since, and as of June 30, the 12.6 million-share position comprises 2.5% of his public equity portfolio.
9. American Express
American Express (AXP - Get Report) has a 1.4% dividend yield. It recently upped its payout to 29 cents per share from 26 cents per share.
Buffett is a long-time shareholder of credit card and payments giant American Express. Comprising 11% of his portfolio, the company is his No. 4 holding. Buffett owns 151.6 million shares as of June 30.
He discussed the company at the 2015 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska. "American Express is still a very, very special company," he said.
8. U.S. Bancorp
Financial services company U.S. Bancorp (USB) has a 2.3% dividend yield. It upped its dividend to 25.5 cents from 24.5 cents this year and has been making quarterly distributions for more than 15 years.
U.S. Bancorp has a 3.5% allocation in Buffett's Berkshire Hathaway portfolio, making it his number seven holding.
7. Deere
Deere (DE) has maintained its quarterly dividend at 60 cents for more than a year, increasing it from 51 cents in 2014. The agriculture and forestry machinery manufacturer's dividend yield is 2.6%.
Buffett invested in Deere & Company in 2012 and raised eyebrows when regulatory filings revealed he had upped his stake significantly in late 2014. He now owns more than 17 million of the company's shares, giving it a 1.6% allocation in his portfolio.
6. Wells Fargo
Wells Fargo (WFC - Get Report) has a quarterly dividend history that stretches across more than two decades. It slashed its dividend significantly in the midst of the 2009 financial crisis, cutting it to 5 cents per share. It has since gradually upped its distribution, which is now 37.5 cents. The financial services company's dividend yield is 2.6%.
Buffett's top holding, Wells Fargo has a 24.7% allocation in the billionaire's public equity portfolio. Berkshire owns 470.3 million shares as of June 30. Buffett has been singing the company's praises for years and in his 1990 letter to Berkshire shareholders called it a "superbly-managed, high-return banking operation."
5. Wal-Mart
With a 49-cent dividend, discount retail giant Walmart (WMT - Get Report) has a 2.7% yield. It last upped its payout in early 2015 and is a dividend aristocrat, meaning it has increased its quarterly distribution across at least 25 consecutive years.
Walmart is Buffett's No. 5 holding and has a 4% allocation in his portfolio. He owns 60.4 million shares as of the most recently reported quarter.
4. Coca-Cola
Coca-Cola's (KO - Get Report) 33-cent dividend gives it a 3.2% dividend yield. The company last upped its quarterly payout in late 2014.
Buffett has for a long time been one of the international beverage corporation's biggest fans, going as far to as declare in a CNBC interview that he is "one quarter Coca-Cola." At the company's 2013 shareholders meeting, Buffett said that he had never sold a share of Coke stock and that he never would.
"I'm the kind of guy who likes to bet on sure things," he said. "No business has ever failed with happy customers -- and you're selling happiness."
As of June 30, Buffett owns 400 million shares of Coke, which comprises 14.7% of the Berkshire Hathaway portfolio and is its second-largest holding.
3. IBM
IBM (IBM) has a 3.4% dividend yield. Its current quarterly payout is $1.30, increased from $1.10 earlier this year.
Buffett's No. 3 position with 79.6 million shares comprising 12.1% of his portfolio, IBM has been among his Berkshire stock picks since 2011. He boosted his stake during the first quarter of 2015 and at the most recent shareholders meeting said he has no regrets over picking IBM over tech rival Apple (AAPL).
2. Procter & Gamble
Consumer goods company Procter & Gamble (PG) has a 3.5% dividend yield. It increased its quarterly payout to 66.29 cents from 64.36 cents this year.
Buffett is a long-time P&G shareholder and in 2014 surprised some when he entered into a somewhat unique deal with the company to buy its Duracell battery business. P&G is his sixth largest position, comprising 3.9% of his portfolio. Buffett owns 52.8 million shares as of June 30.
1. General Motors
General Motors (GM - Get Report) boasts an attractive 4.6% dividend yield. The automaker's current distribution is 36 cents, recently increased from 30 cents.
Buffett bought into the automaker in 2012 and currently holds 41 million shares, giving the company a 1.3% allocation in his holdings. The Oracle of Omaha has in the past voiced his support for CEO Mary Barra and in a 2014 CNN interview called her "dynamite" after a lunch meeting. "I was really impressed," he said.
The only way to avoid making mistakes is not to do anything. And that … will be the ultimate mistake. - Goh Keng Swee
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤，用健康換取身外之物。 ^ 人生无常，珍惜当下。 ^ 放弃固执，适时变通。 ^ 前面是绝路，希望在转角。
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤，用健康換取身外之物。 ^ 人生无常，珍惜当下。 ^ 放弃固执，适时变通。 ^ 前面是绝路，希望在转角。