If you are an investor, one of the best ways to make consistent returns is by buying big dividend stocks. One of the greatest investors of our time, Warren Buffett, successfully follow this approach when building his investing Empire.
That’s why I went through Warren Buffett portfolio and came up with a list of the best yielding dividend stocks from a Berkshire Hathaway’s fund. As of the 38 stocks that Berkshire Hathaway owns, 28 of them actually pay dividends. The stock that pays the highest dividend is GlaxoSmithKline, and they are a British drug company. Out of the top dividend stocks owned by Warren Buffett, they fall under the categories of newspapers, oil and gas, and drug companies.
As of the third quarter of 2012, there were 38 total stocks in Berkshire Hathaway’s portfolio worth a total of $75.326 billion. During this quarter, Buffett opened up four new positions and added onto eight other stocks already owned. His biggest and most important buys were with Deere and Wells Fargo. He increased his position in Wells Fargo by 2.8%, and the combination of the two buys change the portfolio by about half of a percent.
During the third quarter, Berkshire Hathaway also doubled their stake in General Motors, and open up a position in National Oilwell Varco. So you know, the average yield of Warren Buffett’s dividend stocks comes out to 2.44%, which isn’t a very high value. It definitely makes sense to up the yield for added value and growth.
The Top Three Berkshire Hathaway Holdings for Dividends:
GlaxoSmithKline has a current market capitalization of $107.43 billion. The company also employs 97,389 people, and they generate a total revenue of $44.060 billion. As well, they have a net income of $8.780 billion. Before avid or is a show in, depreciation, interest and taxes, the firm is worth $14.813 billion. The EBITDA margin is currently 33.62%, as well as the operating margin is 28.50% and they have a net profit margin of 19.93%.
Financial analysis: the total debt of the company represents 36.27% of their assets as well as the total debt in relation to the amounts of equity to the tune of 185.52%. Because of this particular financial situation, a return on equity of 62.19% is realized. During the 12 trailing months, their earnings per share reached the amount of $3.19. Last year the same time, the company only paid $2.25 out in dividends to its shareholders.
Market valuation: the company’s price ratios are as follows… The P/E ratio is 13.67, the PS ratio is 2.40, and the PB ratio comes in at 8.46. The total dividend yield amounts to 5.36%, and the beta ratio presents a value of 0.65.
Conoco Phillips comes in with a market capitalization of $69 billion. The company currently employs a total of 16,700 people and it also generates a total revenue of $251.226 billion. The net income of the company is $12.502 billion. The earnings of this firm before amortization, depreciation, taxes and interest comes to the amount of $31.891 billion. The margin of EBITDA is 12.69%, as well as the operating margin is 9.16% and the net profit margin of the company is 4.98%.
Financial analysis: the total debt of Conoco Phillips represents 14.76% of the total assets of the company and the total debt when you related to the equity amounts of 34.69%. Due to the financial picture of this business, they were capable of receiving a return on equity of 18.59%. The 12 trailing months showed an earnings-per-share that reached a value of $5.56. During the last fiscal year, the company paid out $2.64 in the amount of a dividend to its current shareholders.
Market valuation: the price ratios of the company are as follows… The P/E ratio is 10.23, the PS ratio is 0.28 and the current PB ratio comes in at 1.13. The amount of the dividend yield is 4.62% and the company’s beta ratio presents a value of 1.13.
Gannett currently holds a market capitalization of $4.05 billion. At the time of this writing, the company fully employs a total of 31,000 people. They generate a total revenue of $5.239 billion, and they also have a net income of $500.13 million. Before taxes, amortization, interest and depreciation, the firm’s earnings amount to $1.012 billion. The margin of EBITDA is 19.32%, and the operating margin is a total of 15.55% while the net profit margin is 9.54%.
Financial analysis, the company’s total debt represents 26.61% of the total debt and total assets when you relate them to the amount of equity of 75.62%. Due to the financial picture of this business, they realize a return of equity in the amount of 20.43%. The trailing 12 months EPS reached a value of $1.84. During the last fiscal year, the dividend to shareholders paid out was $.24.
Market valuation: here are the company’s price ratios… The P/E ratio is currently 9.58, the PS ratio has reached 0.79, and the companies PB ratio comes in at 1.84. The dividend yield is 4.43%, while the beta ratio presents a value of 2.50.
When you take a closer look at the entire table of the best dividend yielding stocks owned by Warren Buffett, you’ll see that the average P/E ratio is about 18.15, and the average forward P/E ratio is roughly 13.05. The dividend yield values at 2.44%. The price-to-book ratio comes in at 4.51 and the price to sales ratio is around 2.81. The operating margin meets the amount of 19.90% and the overall beta ratio is 1.03.