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15 Growing Dividend Stocks That Buffett/Munger Would Choose

Dividend stocks from the Buffett/Munger screener originally published at long-term-investments.blogspot.com. Warren Buffett and Charlie Munger are the two investment heads of Berkshire Hathaway. If they decide to put money into a business, they usually have a good nose for their investment which will be paid-off.

With a long-term annual return wide above 20 percent, they definitely have done the most things right. 

Today I would like to present you the best dividend stocks from the gurufocus Buffett/Munger screener. The tool searches the market by good companies at fair or even undervalued prices. The screener take only stocks with a high predicable business into account. 

These are some of the criteria:
- Rising Margin
- Growing Business
- Little Debt
- Fair or Undervalued

The Buffett/Munger screener gives you over 200 results but I like to focus on the U.S. stock market. 

From 77 American stocks are only 15 shares that pay dividends. Buffett and Munger will definitely love some of these results. 

The good thing is that the screener don’t show results of stocks in which they are already invested. For a closer overview about the latest stock purchases from Warren Buffett and his latest portfolio, please look here: Warren Buffet’s Latest Stock Picks And His Biggest Portfolio Holdings.

On High-Yield is below the results and nine got a buy or better rating by brokerage firms.

Here are my favorite stocks:
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AFLAC (NYSE:AFL) has a market capitalization of $27.40 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).


Financial Analysis: The total debt represents 3.32 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized by AFLAC. Twelve trailing months earnings per share reached a value of $7.20. Last fiscal year, AFLAC paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.18, the P/S ratio is 1.08 and the P/B ratio is finally 1.72. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 2.03.


Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

UnitedHealth Group (NYSE:UNH) has a market capitalization of $75.28 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. UnitedHealth Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).

Financial Analysis: The total debt represents 20.71 percent of UnitedHealth Group’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized by UnitedHealth Group. Twelve trailing months earnings per share reached a value of $5.26. Last fiscal year, UnitedHealth Group paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.09, the P/S ratio is 0.68 and the P/B ratio is finally 2.42. The dividend yield amounts to 1.51 percent and the beta ratio has a value of 0.76.


Long-Term Stock Price Chart Of UnitedHealth Group (UNH)
Long-Term Dividend Payment History of UnitedHealth Group (UNH)
Long-Term Dividend Yield History of UnitedHealth Group (UNH)

Ross Stores (NASDAQ:ROST) has a market capitalization of $15.21 billion. The company employs 16,000 people, generates revenue of $9,721.06 million and has a net income of $786.76 million. Ross Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.457 billion. The EBITDA margin is 14.99 percent (the operating margin is 13.01 percent and the net profit margin 8.09 percent).

Financial Analysis: The total debt represents 4.09 percent of Ross Stores’s assets and the total debt in relation to the equity amounts to 8.49 percent. Due to the financial situation, a return on equity of 48.27 percent was realized by Ross Stores. Twelve trailing months earnings per share reached a value of $3.68. Last fiscal year, Ross Stores paid $0.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.91, the P/S ratio is 1.56 and the P/B ratio is finally 8.69. The dividend yield amounts to 0.98 percent and the beta ratio has a value of 0.72.


Long-Term Stock Price Chart Of Ross Stores (ROST)
Long-Term Dividend Payment History of Ross Stores (ROST)
Long-Term Dividend Yield History of Ross Stores (ROST)

Oracle (NYSE:ORCL) has a market capitalization of $151.97 billion. The company employs 120,000 people, generates revenue of $37,180.00 million and has a net income of $10.925 billion. Oracle’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17.363 billion. The EBITDA margin is 46.70 percent (the operating margin is 39.49 percent and the net profit margin 29.38 percent).

Financial Analysis: The total debt represents 22.61 percent of Oracle’s assets and the total debt in relation to the equity amounts to 41.42 percent. Due to the financial situation, a return on equity of 24.74 percent was realized by Oracle. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, Oracle paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.26, the P/S ratio is 4.02 and the P/B ratio is finally 3.36. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 1.08.


Long-Term Stock Price Chart Of Oracle (ORCL)
Long-Term Dividend Payment History of Oracle (ORCL)
Long-Term Dividend Yield History of Oracle (ORCL)


Take a closer look at the full list of fair or undervalued stocks that Warren Buffett and Charlie Munger would love to buy. The average P/E ratio amounts to 12.59 and forward P/E ratio is 11.44. The dividend yield has a value of 1.90 percent. Price to book ratio is 2.81 and price to sales ratio 1.49. The operating margin amounts to 21.40 percent and the beta ratio is 1.12. Stocks from the list have an average debt to equity ratio of 0.37, a relatively low value compared to the other screens on my blog.

Here is the full table with some fundamentals (TTM):

Dividend Stocks That Warren Buffett and Charlie Munger
Would Love To Buy (Click to enlarge)

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Related Stock Ticker Symbols:
SNP, TEO, AAPL, INGR, AFL, WTW, WLP, UNH, ORCL, PLPC, ROST, HDB, ITUB, AAP, NTL

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*I am long ORCL. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.