Warren Buffett's investment style is a culmination of value, growth, and quality.
He looks for:
- Great business (quality)
- Trading at fair or better prices (value)
- That will compound his money far into the future (growth)
This approach leads Buffet to invest primarily in dividend stocks. Dividend stocks make up around 92% of Buffett's portfolio.
His top four holdings have an average position weighted dividend yield of 3.2% and make up 63% of his portfolio. High quality dividend growth stocks are the cornerstone of Buffett's portfolio.
Attached you will find 7 of his best dividend bets you should consider for the next years. Each of the results is a high quality stock with room to grow in the future.
Here are the results...
Verizon Communication -- Yield: 4.51%
Verizon Communication (NYSE:VZ) employs 162,700 people, generates revenue of $131,620.00 million and has a net income of $18,375.00 million. The current market capitalization stands at $206.25 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 44.94% of Verizon Communication assets and the total debt in relation to the equity amounts to 667.94%. 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 $3.54. 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 14.50, the P/S ratio is 1.59 and the P/B ratio is finally 12.69. The dividend yield amounts to 4.51%.
Stock Charts:
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| Long-Term Stock Price Chart of Verizon Communication (VZ) |
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| Long-Term Dividend Payment History of Verizon Communication (VZ) |
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| Long-Term Dividend Yield History of Verizon Communication (VZ) |
Intl. Business Machines -- Yield: 3.62%
Intl. Business Machines (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 $148.62 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,536.00 million. The EBITDA margin is 23.90% (the operating margin is 18.67% and the net profit margin 16.35%).
Financials: The total debt represents 36.10% of Intl. Business Machines 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.
Twelve trailing months earnings per share reached a value of $12.31. Last fiscal year, Intl. Business Machines 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 12.55, the P/S ratio is 1.81 and the P/B ratio is finally 10.49. The dividend yield amounts to 3.62%.
Stock Charts:
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| Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
The Coca-Cola Company -- Yield: 3.33%
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 $182.57 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 $1.74. 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 24.37, the P/S ratio is 4.10 and the P/B ratio is finally 7.12. The dividend yield amounts to 3.33%.
Stock Charts:
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| Long-Term Stock Price Chart of The Coca-Cola Company (KO) |
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| Long-Term Dividend Payment History of The Coca-Cola Company (KO) |
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| Long-Term Dividend Yield History of The Coca-Cola Company (KO) |
Wells Fargo -- Yield: 3.30%
Wells Fargo (NYSE:WFC) employs 267,900 people, generates revenue of $49,277.00 million and has a net income of $23,276.00 million. The current market capitalization stands at $237.92 billion.Wells Fargo’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 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.
Twelve trailing months earnings per share reached a value of $4.05. Last fiscal year, Wells Fargo 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 11.49, the P/S ratio is 2.70 and the P/B ratio is finally 1.37. The dividend yield amounts to 3.30%.
Stock Charts:
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| Long-Term Stock Price Chart of Wells Fargo (WFC) |
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| Long-Term Dividend Payment History of Wells Fargo (WFC) |
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| Long-Term Dividend Yield History of Wells Fargo (WFC) |
Deere & Company -- Yield: 2.92%
Deere & Company (NYSE:DE) employs 57,200 people, generates revenue of $28,436.30 million and has a net income of $1,940.00 million. The current market capitalization stands at $25.98 billion.Deere & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,760.60 million. The EBITDA margin is 16.74% (the operating margin is 11.88% and the net profit margin 6.82%).
Financials: The total debt represents 63.59% of Deere & Company assets and the total debt in relation to the equity amounts to 546.45%. Due to the financial situation, a return on equity of 24.54% was realized by Deere & Company.
Twelve trailing months earnings per share reached a value of $4.99. Last fiscal year, Deere & Company paid $2.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.51, the P/S ratio is 0.91 and the P/B ratio is finally 3.86. The dividend yield amounts to 2.92%.
Stock Charts:
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| Long-Term Stock Price Chart of Deere & Company (DE) |
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| Long-Term Dividend Payment History of Deere & Company (DE) |
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| Long-Term Dividend Yield History of Deere & Company (DE) |
United Parcel Services -- Yield: 2.91%
United Parcel Services (NYSE:UPS) employs 266,000 people, generates revenue of $58,363.00 million and has a net income of $4,844.00 million. The current market capitalization stands at $95.37 billion.United Parcel Services’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,772.00 million. The EBITDA margin is 16.74% (the operating margin is 13.14% and the net profit margin 8.30%).
Financials: The total debt represents 37.41% of United Parcel Services assets and the total debt in relation to the equity amounts to 580.32%. Due to the financial situation, a return on equity of 210.11% was realized by United Parcel Services.
Twelve trailing months earnings per share reached a value of $5.56. Last fiscal year, United Parcel Services paid $2.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.49, the P/S ratio is 1.61 and the P/B ratio is finally 38.42. The dividend yield amounts to 2.91%.
Stock Charts:
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| Long-Term Stock Price Chart of United Parcel Services (UPS) |
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| Long-Term Dividend Payment History of United Parcel Services (UPS) |
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| Long-Term Dividend Yield History of United Parcel Services (UPS) |
Wal-Mart Stores -- Yield: 2.77%
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 $220.24 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 $4.65. 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 15.47, the P/S ratio is 0.46 and the P/B ratio is finally 2.83. The dividend yield amounts to 2.77%.
Stock Charts:
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| Long-Term Stock Price Chart of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |