Armed with a simple strategy of buying high quality businesses at reasonable prices with an intention of holding them forever, Buffett has racked up one of the best long-term performance track records.
Buffett's Berkshire Hathaway owned over 40 stocks at the end of 2015, and the majority of them pay dividends.
More impressively, nine of Buffett's top 10 positions pay a dividend, and nearly a quarter of his stocks have a high dividend yield of about 3% or more.
We took a closer look at Buffett's top 10 stock picks for dividends which are also ideal investments for conservative retiree dividend portfolios.
Let's take a look at some of the best dividend stocks that Berkshire Hathaway likes so much.
These are Warren Buffett's top stocks sorted by yield...
AT&T -- Yield: 5.04%
AT&T (NYSE:T) employs 281,450 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $230.25 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49,599.00 million. The EBITDA margin is 33.79% (the operating margin is 16.88% and the net profit margin 9.32%).
Financials: The total debt represents 31.33% of AT&T assets and the total debt in relation to the equity amounts to 102.84%. Due to the financial situation, a return on equity of 12.57% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, AT&T paid $1.89 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.82, the P/S ratio is 1.60 and the P/B ratio is finally 1.91. The dividend yield amounts to 5.04%.
Stock Charts:
Long-Term Stock Price Chart of AT&T (T) |
Long-Term Dividend Payment History of AT&T (T) |
Long-Term Dividend Yield History of AT&T (T) |
General Motors Company -- Yield: 4.72%
General Motors Company (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $49.52 billion.General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).
Financials: The total debt represents 32.47% of General Motors Company assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors Company.
Twelve trailing months earnings per share reached a value of $6.68. Last fiscal year, General Motors Company paid $1.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.82, the P/S ratio is 0.33 and the P/B ratio is finally 1.21. The dividend yield amounts to 4.72%.
Stock Charts:
Long-Term Stock Price Chart of General Motors Company (GM) |
Long-Term Dividend Payment History of General Motors Company (GM) |
Long-Term Dividend Yield History of General Motors Company (GM) |
Verizon Communication -- Yield: 4.47%
Verizon Communication (NYSE:VZ) employs 177,700 people, generates revenue of $131,620.00 million and has a net income of $18,375.00 million. The current market capitalization stands at $201.46 billion.Verizon Communication’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46,567.00 million. The EBITDA margin is 35.38% (the operating margin is 25.12% and the net profit margin 13.96%).
Financials: The total debt represents 45.04% of Verizon Communication assets and the total debt in relation to the equity amounts to 670.77%. Due to the financial situation, a return on equity of 124.48% was realized by Verizon Communication.
Twelve trailing months earnings per share reached a value of $4.37. Last fiscal year, Verizon Communication paid $2.23 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.57, the P/S ratio is 1.57 and the P/B ratio is finally 12.53. The dividend yield amounts to 4.47%.
Stock Charts:
Long-Term Stock Price Chart of Verizon Communication (VZ) |
Long-Term Dividend Payment History of Verizon Communication (VZ) |
Long-Term Dividend Yield History of Verizon Communication (VZ) |
Intl. Business Machines Corporation -- Yield: 3.50%
Intl. Business Machines Corporation (NYSE:IBM) employs 377,757 people, generates revenue of $81,741.00 million and has a net income of $13,364.00 million. The current market capitalization stands at $145.02 billion.Intl. Business Machines Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,218.00 million. The EBITDA margin is 24.73% (the operating margin is 19.51% and the net profit margin 16.35%).
Financials: The total debt represents 36.10% of Intl. Business Machines Corporation assets and the total debt in relation to the equity amounts to 279.69%. Due to the financial situation, a return on equity of 102.29% was realized by Intl. Business Machines Corporation.
Twelve trailing months earnings per share reached a value of $13.28. Last fiscal year, Intl. Business Machines Corporation paid $5.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.19, the P/S ratio is 1.75 and the P/B ratio is finally 10.06. The dividend yield amounts to 3.50%.
Stock Charts:
Long-Term Stock Price Chart of Intl. Business Machines Corporation (IBM) |
Long-Term Dividend Payment History of Intl. Business Machines Corporation (IBM) |
Long-Term Dividend Yield History of Intl. Business Machines Corporation (IBM) |
Procter & Gamble -- Yield: 3.31%
Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $76,279.00 million and has a net income of $8,930.00 million. The current market capitalization stands at $217.30 billion.Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,979.00 million. The EBITDA margin is 20.95% (the operating margin is 15.46% and the net profit margin 11.71%).
Financials: The total debt represents 23.43% of Procter & Gamble assets and the total debt in relation to the equity amounts to 48.62%. Due to the financial situation, a return on equity of 13.23% was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, Procter & Gamble paid $2.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.75, the P/S ratio is 2.87 and the P/B ratio is finally 3.58. The dividend yield amounts to 3.31%.
Stock Charts:
Long-Term Stock Price Chart of Procter & Gamble (PG) |
Long-Term Dividend Payment History of Procter & Gamble (PG) |
Long-Term Dividend Yield History of Procter & Gamble (PG) |
The Coca-Cola Company -- Yield: 3.14%
The Coca-Cola Company (NYSE:KO) employs 123,200 people, generates revenue of $44,294.00 million and has a net income of $7,366.00 million. The current market capitalization stands at $193.58 billion.The Coca-Cola Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,075.00 million. The EBITDA margin is 27.26% (the operating margin is 19.70% and the net profit margin 16.63%).
Financials: The total debt represents 49.02% of The Coca-Cola Company assets and the total debt in relation to the equity amounts to 172.64%. Due to the financial situation, a return on equity of 26.31% was realized by The Coca-Cola Company.
Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, The Coca-Cola Company paid $1.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.92, the P/S ratio is 4.35 and the P/B ratio is finally 7.54. The dividend yield amounts to 3.14%.
Stock Charts:
Long-Term Stock Price Chart of The Coca-Cola Company (KO) |
Long-Term Dividend Payment History of The Coca-Cola Company (KO) |
Long-Term Dividend Yield History of The Coca-Cola Company (KO) |
Suncor Energy -- Yield: 3.02%
Suncor Energy (NYSE:SU) employs 13,190 people, generates revenue of $23,056.52 million and has a net income of $-1,574.83 million. The current market capitalization stands at $45.00 billion.Suncor Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,031.10 million. The EBITDA margin is 30.50% (the operating margin is -0.85% and the net profit margin -6.83%).
Financials: The total debt represents 19.74% of Suncor Energy assets and the total debt in relation to the equity amounts to 39.20%. Due to the financial situation, a return on equity of -4.95% was realized by Suncor Energy.
Twelve trailing months earnings per share reached a value of $-1.09. Last fiscal year, Suncor Energy paid $0.90 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 1.97 and the P/B ratio is finally 1.34. The dividend yield amounts to 3.02%.
Stock Charts:
Long-Term Stock Price Chart of Suncor Energy (SU) |
Long-Term Dividend Payment History of Suncor Energy (SU) |
Long-Term Dividend Yield History of Suncor Energy (SU) |
Wells Fargo & Company -- Yield: 2.96%
Wells Fargo & Company (NYSE:WFC) employs 264,700 people, generates revenue of $49,277.00 million and has a net income of $23,276.00 million. The current market capitalization stands at $256.91 billion.Wells Fargo & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,501.00 million. The EBITDA margin is 47.06% (the operating margin is 39.09% and the net profit margin 27.05%).
Financials: The total debt represents 16.62% of Wells Fargo & Company assets and the total debt in relation to the equity amounts to 153.92%. Due to the financial situation, a return on equity of 12.78% was realized by Wells Fargo & Company.
Twelve trailing months earnings per share reached a value of $4.07. Last fiscal year, Wells Fargo & Company paid $1.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.44, the P/S ratio is 2.97 and the P/B ratio is finally 1.51. The dividend yield amounts to 2.96%.
Stock Charts:
Long-Term Stock Price Chart of Wells Fargo & Company (WFC) |
Long-Term Dividend Payment History of Wells Fargo & Company (WFC) |
Long-Term Dividend Yield History of Wells Fargo & Company (WFC) |
Wal-Mart Stores -- Yield: 2.91%
Wal-Mart Stores (NYSE:WMT) employs 2,300,000 people, generates revenue of $482,130.00 million and has a net income of $15,080.00 million. The current market capitalization stands at $214.17 billion.Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,559.00 million. The EBITDA margin is 6.96% (the operating margin is 5.00% and the net profit margin 3.13%).
Financials: The total debt represents 25.07% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 62.12%. Due to the financial situation, a return on equity of 18.15% was realized by Wal-Mart Stores.
Twelve trailing months earnings per share reached a value of $4.57. Last fiscal year, Wal-Mart Stores paid $1.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.03, the P/S ratio is 0.45 and the P/B ratio is finally 2.70. The dividend yield amounts to 2.91%.
Stock Charts:
Long-Term Stock Price Chart of Wal-Mart Stores (WMT) |
Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |