Unveiling Warren Buffett’s Time-Tested High-Yield Stocks

by Fred Fuld III

Warren Buffett, renowned as the Oracle of Omaha, is celebrated for his long-term investment strategy, which often centers around high-quality, dividend-paying stocks in the Berkshire Hathaway (BRK-A) (BRK-B) portfolio. While Buffett’s portfolio encompasses a diverse array of investments, several high-yield stocks have consistently stood out. Listed below are three of his highest yielding stocks in his portfolio. 

Kraft Heinz Company (KHC)

The dividend yield for The Kraft Heinz Company (KHC) stands at 4.59%. With a payout ratio of 68.83%, close to 69% of KHC’s earnings are disbursed to shareholders through dividends. KHC’s annual dividend payout amounts to $1.60 per share. The Price to Book ratio is an excellent 0.86, and the Price to Sales ratio is right in the mid range at 1.71, but the Price to Earnings Growth ratio (PEG ratio) is on the high side at 3.55. The stock makes up 3.47% of Berkshire’s total portfolio.

The ex-dividend date for The Kraft Heinz Company (KHC) is March 7, 2024. Investors purchasing shares on or after this date will not qualify for the upcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution planned for March 29, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Coca-Cola Company (KO)

The dividend yield for The Coca-Cola Company (KO) currently stands at 3.26%. With a payout ratio of 74.22%, approximately three-quarters of KO’s earnings are allocated to shareholders in the form of dividends. Coke’s annual dividend payout amounts to $1.94 per share. The Price to Book ratio is on the very high side at 9.88. The Price to Sales ratio is also very high at 5.56, along with the Price to Earnings Growth ratio (PEG ratio) at 3.88. The stock currently makes up 6.79% of Warren Buffett’s total portfolio.

The ex-dividend date for The Coca-Cola Company (KO) is March 14, 2024. Investors purchasing shares on or after this date will not qualify for the forthcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution scheduled for April 1, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Chevron Corporation (CVX)

The dividend yield for Chevron Corporation (CVX) currently sits at 4.35%. CVX has a payout ratio of 53.05%. Slightly more than half of CVX’s earnings are allocated to shareholders in the form of dividends The annual dividend payout amounts to a whopping $6.52 per share. The Price to Book ratio is a reasonable 1.74. The Price to Sales ratio is right in the mid range at 1.41, but the Price to Earnings Growth ratio (PEG ratio) is on the low side at an excellent 0.81. The company represents 5.41% of Berkshire Hathaway’s total portfolio.

The ex-dividend date for Chevron Corporation (CVX) is February 15, 2024. Investors purchasing shares on or after this date will not qualify for the upcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution planned for March 11, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Overall, high-yield stocks play a crucial role in income generation, portfolio diversification, and long-term wealth accumulation strategies, making them important considerations for investors with varying financial goals and risk tolerances.

Remember, as a rule of thumb, if the P/B ratio, the P/S ratio, and the PEG ratio, is below one, that is good, if it is between one and two is considered average, and above two, it may be on the high side. Some of these ratios may be irrelevant for high growth stocks.

Stay ahead of the game and subscribe to our newsletter now to unlock the hottest investment opportunities!

Subscribe Here 

Warren Buffett’s Favorite High Yield Stocks All Paying Over 3%

Warren Buffett is the most famous investor in the world. Check out his high yield stocks.

by Fred Fuld III

Warren Buffett, the CEO of Berkshire Hathaway (BRKA) (BRKB), is the most well known investor in the world.

He is also not only one of the wealthiest investors, he is also the seventh wealthiest person in the world, according to Forbes, sporting a net worth of $96.7 billion.

In addition, Buffett is a very interesting character.

Many investors like to follow in Buffett’s footsteps in terms of investments, in order to match his outstanding returns.

Yet, some of Buffett’s stocks don’t pay dividends, such as Amazon (AMZN), and if you are an income investor, you might want to choose the top dividend paying stocks of Berkshire Hathaway.

At the top of the list is Kraft Heinz (KHC), which pays a dividend of $1.60 per year and currency has a very favorable yield of 4.28%. The stock trades at 13.5 times forward earnings and even sells at a discount to book value with a Price to Book ratio of 0.94.

In second place is U. S. Bancorp (USB), which pays a high yield of 4.01%, with a $1.84 dividend rate. The stock has a very reasonable forward price to earnings ratio of 8.91%.

Next is Chevron (CVX) yields 3.60%, paying out $5.68 per year, payable quarterly. The forward P/E ratio is a solid 9.37.

HP Inc. (HPQ) is another one of Buffett’s holdings paying over 3%, with a yield of 3.55%. The stock trades at an extremely low 6.43 times forward earnings.

Finally, Bank of New York Mellon (BK) has a yield of 3.44%. The forward P/E is a solid 8.66. This is another Berkshire company that sells below book value with a price/book ratio of 0.92.

Maybe some of Buffett’s dividend paying stocks can help make you rich.

MORE POPULAR STOCK LISTS OF INTEREST

Top 10 Short Squeeze Plays

Stocks Going Ex Dividend

Business Development Companies Paying Over 10%

Warren Buffett’s Berkshire Hathaway Generates $43.7 Billion Loss

FOR IMMEDIATE RELEASE

Omaha, NE (BRK.A; BRK.B) –

August 6, 2022

BERKSHIRE HATHAWAY INC. NEWS RELEASE

Berkshire’s operating results for the second quarter and first six months of 2022 and 2021 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.comThe limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the second quarter and first six months of 2022 and 2021 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions,

Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains (losses) in 2022 include losses of $53.0 billion in the second quarter and $53.8 billion in the first six months and in 2021 include gains of $21.0 billion in the second quarter and $23.8 billion in the first six months due to changes during the second quarter and the first six months in the unrealized gains that existed in our equity security investment holdings. Investment gains (losses) in 2022 also include after-tax realized gains on sales of investments of $44 million in the second quarter and after-tax realized losses of $568 million in the first six months and in 2021 include after-tax realized gains on sales of investments of $183 million in the second quarter and $1.6 billion in the first six months.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
Second Quarter First Six Months

Approximately $1.0 billion was used to repurchase Berkshire shares during the second quarter of 2022, bringing the six-month total to $4.2 billion. At June 30, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $147 billion, relatively unchanged from yearend 2021.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses and impairments of goodwill and intangible assets.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

Warren Buffett’s Portfolio Changes in Berkshire Hathaway

by Fred Fuld III

Warren Buffett has had a very long and successful career as a portfolio manager for Berkshire Hathaway. Many investors like to follow in his footsteps, at least in terms of buying the game long term investments that he is buying.

His Berkshire Hathaway stock has had an average annual return of around 20% since 1965. Not too shabby since the S&P 500 has only had a little over 10% average annual return over the same time frame.

So what has Warren Buffett been doing lately?

Warren Buffett Purchases

First, his buys. Buffett has purchased over 136 million shares of Occidental Petroleum (OXY) since the beginning of the year.

He also bought 104 million shares of HP Inc. (HPQ), and 55 million shares of Citigroup (C).

In addition, Buffett has added the following stocks to the Berkshire portfolio:

  • Celanese (CE)
  • Paramount Global (PARA)
  • McKesson (MCK)
  • Markel (MKL)
  • Ally Financial (ALLY)

Warren Buffett Sales

Buffett has also been liquidating some stocks in the Berkshire portfolio. These include:

  • Wells Fargo (WFC)
  • Abbvie (ABBV)
  • Bristol-Myers Squibb (BMY)

To see the full portfolio of Warren Buffett’s Berkshire Hathaway, click HERE.

Of course, if you really want to match the return of Berkshire Hathaway, you might as well buy the A shares (BRK-A) or the B shares (BRK-B) of the company.

Remember what Warren Buffett said:

“Don’t buy a stock unless you think it’s undervalued.”

 

Disclosure: Author didn’t own any of the above at the time the article was written.

These are the 18 books that Warren Buffett thinks you should read to get smarter about investing and trading

Warren Buffett, head of Berkshire Hathaway (BRKA) (BRKB), actually came out with a list of books that he recommends on how to trade stocks and invest.

If you are interested in reading books about how to invest and trade, that are recommended by Warren Buffett, they can be found on the list below:

Business Adventures Twelve Classic Tales from the World of Wall Street

Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition

The Great Crash 1929

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)

Investing Between the Lines: How to Make Smarter Decisions By Decoding CEO Communications

Here are his recommended books about himself.

Berkshire Beyond Buffett: The Enduring Value of Values

 

Berkshire Hathaway Letters to Shareholders

 

50 Years of Berkshire Hathaway Wall Print
This is actually a wall print poster.

 

Buffet: The Making of an American Capitalist

 

Buffett’s Bites: The Essential Investor’s Guide to Warren Buffett’s Shareholder Letters

 

The Essays of Warren Buffett: Lessons for Corporate America, Fifth Edition

 

A Few Lessons for Investors and Managers From Warren Buffett

Here are more books that Warren Buffett recommends about himself.

My Warren Buffett Bible: A Short and Simple Guide to Rational Investing: 284 Quotes from the World’s Most Successful Investor

 

The Oracle & Omaha, How Warren Buffet and His Hometown Shaped Each Other

 

Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2013

 

Warren Buffett on Business: Principles from the Sage of Omaha

 

Warren Buffett’s Ground Rules: Words of Wisdom from the Partnership Letters of the World’s Greatest Investor

Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor

Enjoy your reading!!!

 

 

This page includes affiliate links.

What Warren Buffett is Dumping and Buying

by Fred Fuld III

You know, if you are thinking of investing in Apple (AAPL) stock, you just might want to consider buying shares of Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) stock, as 40% of the Berkshire portfolio is made up of Apple.

This way, if Apple does well, you participate through Berkshire, and if it doesn’t, at least you have diversification though Berkshire’s ownership of over 45 other stocks.

So let’s look at the rest of Buffett’s portfolio. In the first quarter of the year, he sold out of two companies, Suncor Energy (SU) and Synchrony Financial (SYF).

Warren Buffett has been reducing positions in a couple bank stocks, US Bancorp (USB) and Wells Fargo (WFC). He has also been lightening up on General Motors (GM), Chevron (CVX), Abbvie (ABBV), Bristol-Myers Squibb (BMY), Merck (MRK), Stoneco (STNE), Axalta Coating (AXTA), Sirius XM Radio (SIRI), and Liberty Global (LBTYA).

He hasn’t been buying much, but he has been adding to his positions in Verizon (VZ), buying over 12 million additional shares. He also added 17.5 million shares to his Kroger (KR) position, and bought more Restoration Hardware (RH) and Marsh & McLellan (MMC).

There is one brand new stock in the Berkshire Hathaway portfolio., the insurance company Aon (AON). The stock has a trailing price to earnings ratio of 27.5 and a forward P/E of 22.5. It pays a yield of 0.81%.

To see the list of all the Warren Buffett holdings, click HERE.

Maybe some of these stocks will make you as successful as Warren Buffett.

 

Disclosure: Author owns AAPL.

Warren Buffett’s Recent Stock Portfolio Changes

by Fred Fuld III

Warren Buffett, head of Berkshire Hathaway (BRKA) (BRKB), is one of the richest men in the world and one of the most followed investment professional.

Many long term investors pay close attention to his stock moves and the Berkshire Hathaway stock portfolio, and often follow in his footsteps.

Here are his recent changes:

He sold off over 57 million shares of Apple (AAPL), but the stock still makes up over 43% of his portfolio and his largest holding.

He added 88 million shares of Verizon (VZ) to his current holdings in the company.

He sold off more than 800,000 shares of US Bancorp (USB), but still owns131 million  shares.

He added 4 million shares of Chevron (CVX) to his current stockholdings.

He reduced his General Motors holdings (GM) by 7.5 million shares.

He sold off a substantial amount of his holdings in Wells Fargo (WFC), about 75 million shares.

He bought more shares of Abbvie (ABBV), Merck (MRK), Kroger (KR), Restoration Hardware (RH), T-Mobile (TMUS), Marsh & McLennan (MMC), and Bristol-Myers Squibb (BMY).

He sold 5 million shares of Suncor (SU).

Finally, he closed out his entire positions in JP Morgan Chase (JPM), M&T Bank (MTB), Barrick Gold (ABX), PNC Financial (PNC), and Pfizer (PFE).

To se Warren Buffett’s portfolio, click HERE. Let’s see if you can outperform Warren Buffett this year.

 

Disclosure: Author owns AAPL, MRK, and PFE.

Is It Time for Gold Stocks to Move Up?

by Fred Fuld III

Over the last three months, stocks have been going up, bitcoin has been going up, but gold and gold mining stocks have been dropping in price.

This is in spite of the fact that gold is considered a safe haven, interest rates are very low, the dollar is weak, and the economy will experience eventual increasing inflation.

Not only that, Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) bought Barrick Gold (GOLD) earlier this year.

So it it time for gold and the gold mining stocks to start moving up?

The following is a group of gold stocks that are down over 10% for the latest quarter, have a trailing price to earnings ratio of less than 20, and a forward P/E ratio of less than 20.

AngloGold (AU)

Caledonia Mining (CMCL)

Galiano Gold (GAU)

Barrick Gold (GOLD)

Disclosure: Author didn’t own any of the above at the time the article was written.

Investment Books Recommended by Warren Buffett

Warren Buffett, head of Berkshire Hathaway (BRKA) (BRKB), really came out with a list of books that he recommends on how to invest.

At last year’s Berkshire Hathaway annual meeting, Buffett actually provided such a list. The books he recommended about himself can be found here and here.

However, if you are interested in reading books about how to invest, that are recommended by Warren Buffett, they can be found on the list below:

Business Adventures Twelve Classic Tales from the World of Wall Street

Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition

The Great Crash 1929

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)

Investing Between the Lines: How to Make Smarter Decisions By Decoding CEO Communications

Happy Reading!

 

 

Affiliate links