Warren Buffett Sells These 7 Stocks

Recently, I wrote about the great value investor, Warren Buffett and introduced his latest dividend stock buys. This blog is dedicated to stocks with a long history of dividend growth.

I like those stocks, especially when they offer a bigger part of safeness due to a large diversification.

Today I like to show you those stocks that Warren Buffett sold within the recent quarter. In total, he decreased seven positions.

These are the results with the highest dividend yield....

Warren Buffett Buys Surprisingly These 9 Top Dividend Stocks

Warren Buffett is one of the most respected investors on the market. When he invests, it’s mostly a guarantee for follow investors to make money but as we have seen in the past, it’s often not true.

Warren makes mistakes when you think on the investments in Exxon, Tesco, DaVita or even ConocoPhillips.

However, it's always good to know what moves he makes and he did a big shot during the latest quarter. Let's take a deeper look at his dividend picks. Here are the results: Warren Buffett's latest Stock Buys and Sells.

If you like more results from the big investor, you should read my latest article about the Q3/2014 Warren Buffett stock moves.

Warren Buffett’s latest dividend stock buys are...

How to Retire At The Age Of 40 With Dividends - 10 Helpful Investing Tips From "All About Interest"

I'm passionate about dividends and share my thoughts about stocks on my blog but there are also many other bloggers with good ideas.

Most of them share their personal journey to financial freedom on the internet and educate people how they grow their passive income with dividend stocks. Their plan: Retire at the age of 40.

I love those stories and the hard work they do. I'm also a guy who worked hard for his success. That's the reason why I want to support them and like to distribute their thoughts to a wider audience.

I share fresh articles from them on my Twitter and Facebook account. If you like you can join the conversation there. It’s always great.

Today I'd like to interview a great Blogger who has a nice dividend investing space on the internet, a site calling All About Interest.

Tom: AA Interest, you are a dividend investor and publishing your journey to a financial independence at the age of 40 on the web. On your blog, you show people your asset structure with a net worth of $725,000. What are your main growth drivers for your financial freedom goal?

AA Interest: My main growth driver is my savings each month that I plow back into investments that offer passive income streams. These passive income streams are real estate (rental properties) and dividend growth stocks. 

This passive income is then added to my savings the following month and put right back to work for me, causing a compounding, or snowball effect. 

Tom: Out there are so many people who have the dream to retiree with a high passive dividend income stream. Can you give them three important tips to follow in order to achieve this aim?

AA Interest: My advice is simple:

1.) Start investing as soon as possible

2.) Save as much as you can each month

3.) Research your investments

These are the three biggest factors that will produce your desired retirement amounts: time, money and rate of return.  You need to know the time you have available for compounding to work its magic.  You need to know the amount of money you have available to invest.  You also need to do your research so you have a good return on your investments.

 

Tom: Back to stock market financials. What are the best places to be when you think about putting money into stocks now; can you tell us something about your recent trades or your current ideas.

AA Interest: Whether the market is in a bull or bear cycle, I believe there are always companies that offer a fair value or better. Currently, I have a large portion of my portfolio in the energy sector.  

I'm invested in big names like Chevron, Conoco Phillips, British Petroleum and Kinder Morgan to name a few. From a p/e standpoint, a lot of these energy companies offer some of the best values in the market.

They also happen to pay a generous and growing dividend, usually in excess of 3.5%. 

I'm also a fan of companies that generate large amounts of free cash flow and have little or no debt. A company like this that I've recently been investing in is Visa.  

I also look for short-term, negative catalysts that can suppress a stock's price. One such company I've been investing in lately is Target.

Shares are trailing the S&P significantly since the credit card breach and lackluster Canadian results.

However, Target is a dividend champion, having increased their dividend consecutively for over 47 years! I'm a fan of the company long-term and believe shares currently offer a good value. 

Tom: Final Question: You’ve published a long Watchlist on your Blog. What are your main criteria to consider a buy? Do you look at P/E multiples, high yields or other ratios?

AA Interest: I actually laid out a Business Plan so that I could monitor my stock purchasing like running an actual business. As outlined in this plan, my main criteria to buy are:

1.) At least 90% of all stocks chosen should be in the CCC list, that is the Champions, Contenders and Challengers list maintained by David Fish.  This list can be found on my Resources tab.

2.) Small-Cap or larger ( >250 million market cap).

3.) 10-year YOC should be 10% or higher (typically using 5-year CAGR).

4.) Minimum yield of 2.5% (exception can be made as long as target total portfolio yield holds).

5.) Dividend growth over last 5 years (5-year CAGR) must be over 4%.

6.) Large moat or competitive advantages.

7.) Sound fundamentals.

These are the basic rules that I follow. Some of these rules leave flexibility and some room for being subjective.  

For instance, Visa doesn't meet rule number 4. However, since my portfolio average yield is well above 3.5%, I made an exception.

In a nutshell, I'm looking for companies that pay and raise dividends at a rate higher than inflation, have a large barrier to entry and are fundamentally sound. This is why I consider myself a dividend growth investor.

Tom: Thank you for your great interview. If you like to follow AA Interest, please visit his Blog at http://www.allaboutinterest.com.

If you also like to be interviewed or release a guest article, please contact us.

Final Trades For The Year 2013: Exxon Mobil (XOM) And C.H. Robinson Worldwide (CHRW)

Last Friday, I made two final trades for the year 2013 and hit my primary goal of a minimum estimated dividend income of at least $3,000 per year.

I purchased shares of the leading energy company Exxon Mobil for around $2,000 dollar and purchased the air delivery and freighting services stock C.H. Robinson Worldwide. Both pay a dividend close the 2.5 percent mark and have a comfortable debt situation.

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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I’ve finished my year-end target of a $3,000 estimated dividend income by the end of the year 2013. I needed to make two final trades to satisfy this goal.

The good thing is that I still own over $10,000 dollar to make stock repurchases or to buy new stock trades. The remaining cash should grow by over 3,000 dollar next year. It makes me very flexible to distribute further money.

Portfolio I (Click to enlarge)

Portfolio II (Click to enlarge)

Portfolio Transactions (Click to enlarge)

For the time being, the markets look very expensive because most of the high-quality and fast growing dividend stocks are valuated far above the 20 P/E mark.

I deeply believe that it makes more sense to hold cash and keep it. For sure the full portfolio performance of 11.29 percent is not good and far below the market return but the volatility was also much lower due to the high cash amounts over the recent year.

The strategy is to create an asset vehicle that generates long-term income stream for normal private investors like you and me with the ambitious to double the income each 10 years or less. I’m very exiting how it develops over the time.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	34.35	3.42	28.90	50	$65.00	$1,897.00
LMT	Lockheed Martin C	15.88	3.21	92.72	20	$95.60	$2,962.60
INTC	Intel Corporation	13.9	3.5	21.27	50	$45.00	$1,280.00
MCD	McDonald's Corpor	17.48	3.22	87.33	25	$78.00	$2,422.75
WU	Western Union Com	11.42	2.9	11.95	100	$50.00	$1,720.00
PM	Philip Morris Int	16.33	4.16	89.76	30	$107.40	$2,602.20
JNJ	Johnson & Johnson	20.64	2.8	69.19	20	$51.80	$1,847.00
MO	Altria Group Inc	14.92	4.81	33.48	40	$73.60	$1,532.40
SYY	Sysco Corporation	22.01	3.07	31.65	40	$44.80	$1,472.80
DRI	Darden Restaurant	20.04	3.87	46.66	30	$63.00	$1,629.90
CA	CA Inc.	14.3	2.99	21.86	50	$50.00	$1,671.50
PG	Procter & Gamble	20.78	2.9	68.72	25	$59.20	$2,050.25
KRFT	Kraft Foods Group	17.32	3.82	44.41	40	$80.00	$2,148.20
MAT	Mattel Inc.	19.38	3.11	36.45	40	$57.60	$1,879.60
PEP	Pepsico Inc. Com	19.35	2.72	70.88	20	$44.82	$1,654.20
KMB	Kimberly-Clark Co	21.83	3.09	86.82	15	$48.60	$1,576.50
COP	ConocoPhillips Co	10.74	3.85	61.06	20	$52.80	$1,407.80
GIS	General Mills In	18.5	2.86	42.13	30	$42.60	$1,495.20
UL	Unilever PLC Comm	19.04	3.45	39.65	35	$48.83	$1,433.25
NSRGY	NESTLE SA REG SHR	20.13	2.99	68.69	30	$65.31	$2,206.20
GE	General Electric	20.92	2.84	23.39	65	$51.35	$1,808.95
ADP	Automatic Data Pr	27.47	2.21	61.65	25	$44.63	$2,018.00
K	Kellogg Company C	23.22	2.96	61.52	25	$45.00	$1,524.50
KO	Coca-Cola Company	20.99	2.77	38.83	40	$44.80	$1,626.40
RTN	Raytheon Company	15.68	1.81	57.04	20	$33.00	$1,817.00
RCI	Rogers Communicat	12.12	3.78	46.5	50	$84.60	$2,226.00
GPC	Genuine Parts Com	18.62	2.59	77.06	20	$42.96	$1,664.40
TSCDY	TESCO PLC SPONS A	N/A	4.1	17.08	110	$75.79	$1,866.70
APD	Air Products and	24.27	1.87	85.71	15	$31.95	$1,701.45
GSK	GlaxoSmithKline P	20.65	4.6	52.16	30	$72.24	$1,590.00
WMT	Wal-Mart Stores	15.07	2.4	79.25	20	$37.60	$1,569.40
BTI	British American	16.2	3.94	111.13	30	$125.40	$3,211.50
CHL	China Mobile Limi	10.28	4.26	55.32	40	$89.52	$2,110.40
MMM	3M Company Common	21.25	1.84	110.27	15	$38.10	$2,090.25
TUP	Tupperware Brands	19.98	2.6	80.98	15	$37.20	$1,423.65
IBM	International Bus	12.84	2	193.17	20	$74.00	$3,701.60
HAS	Hasbro Inc.	24.83	2.22	44.09	30	$36.00	$1,632.00
T	AT&T Inc.	25.74	5.12	34.47	30	$54.00	$1,055.40
WAG	Walgreen Co. Comm	20.24	2.05	44.25	30	$35.40	$1,722.90
AFL	AFLAC Incorporate	10.25	2.12	59.39	20	$28.40	$1,345.00
TGT	Target Corporatio	16.72	2.53	68.69	32	$50.56	$1,988.80
CSCO	Cisco Systems In	11.85	2.34	23.98	130	$66.30	$2,862.60
DE	Deere & Company C	10.02	2.24	84.11	15	$30.60	$1,360.50
RGR	Sturm Ruger & Co	13.94	2.89	51.65	20	$42.48	$1,455.60
LO	Lorillard Inc Co	15.85	4.36	42.3	30	$66.00	$1,515.90
UNP	Union Pacific Cor	18.35	1.78	154.75	8	$23.68	$1,328.40
IDA	IDACORP Inc. Com	15.7	3	47.94	20	$31.40	$1,042.60
BAX	Baxter Internatio	17.55	2.77	66.38	20	$38.40	$1,389.40
MSFT	Microsoft Corpora	14.02	2.59	33.88	40	$38.80	$1,491.60
ACN	Accenture plc. Cl	17.49	2.12	77.71	20	$34.80	$1,650.20
BCE	BCE Inc. Common	14.23	3.93	44.26	25	$42.48	$1,077.00
VZ	Verizon Communica	64.04	4.22	50.31	30	$62.25	$1,475.10
CVX	Chevron Corporati	10.21	3.12	124.03	10	$39.00	$1,252.30
ORCL	Oracle Corporatio	16.04	0.64	35.2	40	$9.60	$1,519.20
XEL	Xcel Energy Inc.	14.7	3.99	28.21	50	$55.50	$1,393.00
CHRW	C.H. Robinson Wor	15.72	2.45	57.72	20	$28.00	$1,154.40
XOM	Exxon Mobil Corpo	13.18	2.44	101.51	20	$49.20	$2,030.20
						$3,014.94	$100,581.65
						Average Yield	3.00%
						Yield On Cost	3.34%