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Buy Big Dividend Paying Stocks - Warren Buffett’s Best Yielding Fund Holdings

Warren Buffett - Berkshire Hathaway Q3/2012 Fund Investing Strategies By Dividend Yield – Stock Capital, Investment. Buying big dividend stocks is one of my favorite claims. A great investor who followed this approach successfully is Warren Buffett. I made a list of his best yielding stocks from his latest reported billionaire’s fund - Berkshire Hathaway. From his 38 stocks pay 28 dividends. The highest yielding stock is GlaxoSmithKline (GSK), a British drug company. Its dividend yield is 5.32 percent. The top stocks are a mix of drugs, oil & gas and newspaper businesses.

As of Q3/2012 (September 30, 2012), Warren Buffett’s has 38 stocks with a total portfolio worth of USD 75.326 billion. Buffett bought four new companies and added eight additional stocks. The most important buy was caused by Wells Fargo and Deere. WFC was increased by 2.8 percent. Both buys affected his portfolio only by around 0.5 percent. His stake in General Motors was doubled as well as the stake in National Oilwell Varco. As you can see, the average yield of his dividend stocks is 2.44 percent – not a very high value. It makes definitely sense to give up yield for growth and value.

Warren Buffett’s Top 3 Fund Holdings in Review:
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GlaxoSmithKline (NYSE:GSK) has a market capitalization of $107.43 billion. The company employs 97,389 people, generates revenue of $44.060 billion and has a net income of $8.780 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.813 billion. The EBITDA margin is 33.62 percent (the operating margin is 28.50 percent and the net profit margin 19.93 percent).

Financial Analysis: The total debt represents 36.27 percent of the company’s assets and the total debt in relation to the equity amounts to 185.52 percent. Due to the financial situation, a return on equity of 62.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.19. Last fiscal year, the company paid $2.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.67, the P/S ratio is 2.40 and the P/B ratio is finally 8.46. The dividend yield amounts to 5.36 percent and the beta ratio has a value of 0.65.


”Long-Term
Long-Term Stock History Chart Of GlaxoSmithKline (GSK)
”Long-Term
Long-Term Dividends History of GlaxoSmithKline (GSK)
”Long-Term
Long-Term Dividend Yield History of GlaxoSmithKline (GSK)

ConocoPhillips (NYSE:COP) has a market capitalization of $69.00 billion. The company employs 16,700 people, generates revenue of $251.226 billion and has a net income of $12.502 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.891 billion. The EBITDA margin is 12.69 percent (the operating margin is 9.16 percent and the net profit margin 4.98 percent).

Financial Analysis: The total debt represents 14.76 percent of the company’s assets and the total debt in relation to the equity amounts to 34.69 percent. Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $5.56. Last fiscal year, the company paid $2.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.23, the P/S ratio is 0.28 and the P/B ratio is finally 1.13. The dividend yield amounts to 4.62 percent and the beta ratio has a value of 1.13.


”Long-Term
Long-Term Stock History Chart Of ConocoPhillips (COP)
”Long-Term
Long-Term Dividends History of ConocoPhillips (COP)
”Long-Term
Long-Term Dividend Yield History of ConocoPhillips (COP)

Gannett (NYSE:GCI) has a market capitalization of $4.05 billion. The company employs 31,000 people, generates revenue of $5.239 billion and has a net income of $500.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.012 billion. The EBITDA margin is 19.32 percent (the operating margin is 15.55 percent and the net profit margin 9.54 percent).

Financial Analysis: The total debt represents 26.61 percent of the company’s assets and the total debt in relation to the equity amounts to 75.62 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.84. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.58, the P/S ratio is 0.79 and the P/B ratio is finally 1.84. The dividend yield amounts to 4.43 percent and the beta ratio has a value of 2.50.


”Long-Term
Long-Term Stock History Chart Of Gannett (GCI)
”Long-Term
Long-Term Dividends History of Gannett (GCI)
”Long-Term
Long-Term Dividend Yield History of Gannett (GCI)


Take a closer look at the full table of Warren Buffett’s best yielding dividend stocks. The average price to earnings ratio (P/E ratio) amounts to 18.15 and forward P/E ratio is 13.05. The dividend yield has a value of 2.44 percent. Price to book ratio is 4.51 and price to sales ratio 2.81. The operating margin amounts to 19.90 percent and the beta ratio is 1.03.

Best Yielding Stocks From Warren Buffett (Click to enlarge)

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GSK, COP, GCI, D, SNY, JNJ, GE, PG, UPS, MTB, KO, WFC, WPO, USB, WMT, DE, BK, MDLZ, PSX, IBM, AXP, MCO, TMK, COST, V, NOV, MA, PCP