Warren Buffett’s strategy can be called “value investing” which is based on buying and holding high value stocks and not about taking advantage of daily or short-term price movements through frequent trading. He believes in carefully evaluating a company before investing in order to get a good idea of its profitability and its true intrinsic value, as opposed to the short term market fluctuations that may not correctly reflect a company’s real worth. That is why Mr. Buffett often buys stocks with the intention of holding for a long period and making steady gains in the form of dividends (read more here). For this reason, we wanted to look specifically at the stocks that earn him the highest dividend yields.
Turns out that this 82 year old is a big fan of Coca-Cola (KO), where he devotes over 20% of his total investment, a very large portion indeed. And Coca-Cola has also done him well. Throughout most of 2012, its dividend yield has been consistently been over 5%, which is extremely high, although it suddenly dropped below 3 in October.
The chart below displays Mr. Buffetts holdings that have yielded him the highest dividends. However, these are not the stocks he holds the highest stakes in, except for Coca-Cola. In fact most of these constitute a very small percentage of his total investment.
the following chart compares dividend yields of Mr. Buffetts top holdings in terms of percentage of portfolio.
Below is a list of the highest paying dividend stocks held by Warren Buffett.
1. GlaxoSmithKline plc (GSK, Earnings, Analysts, Financials): Engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide. Market cap at $106.61B. Yield: 5.34%
3. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $102.06B. Yield: 4.36%
6. Johnson $ Johnson (JNJ, Earnings, Analysts, Financials): Engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Market cap at $194.24B. Yield: 3.48%
8. General Dynamics Corp. (GD, Earnings, Analysts, Financials): Provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. Market cap at $24.37B. Yield: 2.94%
9. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes and markets nonalcoholic beverages worldwide. Market cap at $163.35B. Yield: 2.81%
Average Analyst ratings for these stocks:
Written by Fay Faatin
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- GlaxoSmithKline plc (GSK, Chart, Download SEC Filings)
- ConocoPhillips (COP, Chart, Download SEC Filings)
- Intel Corporation (INTC, Chart, Download SEC Filings)
- Gannett Co., Inc. (GCI, Chart, Download SEC Filings)
- Sanofi (SNY, Chart, Download SEC Filings)
- Johnson $ Johnson (JNJ, Chart, Download SEC Filings)
- General Electric Company (GE, Chart, Download SEC Filings)
- General Dynamics Corp. (GD, Chart, Download SEC Filings)
- The Coca-Cola Company (KO, Chart, Download SEC Filings)
New to Kapitall?
1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter