Warren Buffett’s High 20 Highest Conviction Inventory Picks


Up to date on February twenty fifth, 2022 by Bob Ciura

To spend money on nice companies, it’s a must to discover them first. That’s the place Warren Buffett is available in…

Berkshire Hathaway (BRK.B) has an fairness funding portfolio price greater than $330 billion, as of the tip of the 2021 fourth quarter.

Berkshire Hathaway’s portfolio is full of high quality shares. You’ll be able to ‘cheat’ from Warren Buffett shares to seek out picks for your portfolio. That’s as a result of Buffett (and different institutional traders) are required to periodically present their holdings in a 13F Submitting.

You’ll be able to see all of Warren Buffett’s inventory holdings (together with related monetary metrics like dividend yields and price-to-earnings ratios) by clicking on the hyperlink under:

 

This text analyzes Warren Buffett’s high 20 shares based mostly on info disclosed in his This autumn 2021 13F submitting.

Notice: 13F submitting efficiency is totally different than fund efficiency. See how we calculate 13F submitting efficiency right here.

Desk of Contents

You’ll be able to skip to a particular part with the desk of contents under. Shares are listed by share of the entire portfolio, from highest to lowest.

How To Use Warren Buffett Shares To Discover Funding Concepts

Having a database of Warren Buffett shares is extra highly effective when you will have the flexibility to filter it based mostly on necessary investing metrics.

That’s why this text’s Excel obtain is so helpful…

It lets you search Warren Buffett shares to seek out dividend funding concepts that match your particular portfolio.

For these of you unfamiliar with Excel, this part will present you find out how to filter Warren Buffett shares for 2 necessary investing metrics – price-to-earnings ratio and dividend yield.

Step 1: Click on on the filter icon within the column for dividend yield or price-to-earnings ratio.

Step 2: Filter every metric to seek out high-quality shares. Two examples are supplied under.

Instance 1: To search out shares with dividend yields above 1% and listing them in descending order, click on the ‘Dividend Yield’ filter and do the next:

Warren Buffett's Top Stocks Excel Screenshot 2

Instance 2: To search out shares with price-to-earnings ratios under 25 and listing them in descending order, click on the ‘Worth-to-Earnings Ratio’ filter and do the next:

Warren Buffett's Top Stocks Excel Screenshot Additional Example

Warren Buffett & Dividend Shares

Buffett has grown his wealth by investing in and buying companies with sturdy aggressive benefits buying and selling at truthful or higher costs.

Most traders know Warren Buffett appears to be like for high quality, however few know the diploma to which he invests in dividend shares:

  • Over half of Warren Buffett’s high 10 shares pay dividends
  • His high 5 holdings have a mean dividend yield of two.2% (and make up 77% of his portfolio)
  • Lots of his dividend shares have paid rising dividends over a long time

Warren Buffett prefers to spend money on shareholder-friendly companies with lengthy monitor information of success.

The next shares characterize Warren Buffett’s largest 20 inventory positions.

Notice: You’ll be able to see Buffett’s high dividend shares analyzed in video format as properly under.

 

#1: Apple, Inc. (AAPL)

Dividend Yield: 0.5%
% of Warren Buffett’s Portfolio: 47.6%

As of its fourth-quarter 13F submitting, Berkshire held simply over 887 million shares of Apple, price greater than $157 billion. Apple is Berkshire’s largest place by far, due largely to Apple’s wonderful rally over the previous few years.

Apple revolutionized private expertise with the introduction of the Macintosh in 1984. At present the expertise firm designs, manufactures and sells merchandise similar to iPhones, iPads, Mac, Apple Watch and Apple TV.

Apple additionally has a companies enterprise that sells music, apps, and subscriptions.

Click on right here to obtain our most up-to-date Positive Evaluation report on Apple (preview of web page 1 of three proven under):

#2: Financial institution of America Company (BAC)

Dividend Yield: 1.9%
% of Warren Buffett’s Portfolio: 13.6%

Berkshire Hathaway owns simply over 1 billion shares of Financial institution of America inventory, price practically $45 billion as of the newest 13F submitting.

Financial institution of America, headquartered in Charlotte, NC, gives conventional banking companies, in addition to nonbanking monetary companies to prospects throughout the world. Its operations embrace Client Banking, Wealth & Funding Administration and World Banking & Markets.

Financial institution of America was based in 1904, and may produce about $89 billion in income this year. Financial institution of America is one of many largest monetary shares on this planet.

Click on right here to obtain our most up-to-date Positive Evaluation report on Financial institution of America (preview of web page 1 of three proven under):

#3: American Categorical Firm (AXP)

Dividend Yield: 0.9%
% of Warren Buffett’s Portfolio: 7.5%

American Categorical is considered one of Berkshire’s longest-held shares. American Categorical is a bank card firm that operates the next enterprise items: US Card Companies, Worldwide Client and Community Companies, World Industrial Companies, and World Service provider Companies. American Categorical was based in 1850.

American Categorical reported its fourth quarter earnings outcomes on January 25. The corporate generated revenues of $12.2 billion throughout the quarter, which was 30% extra than throughout the earlier 12 months’s quarter. The revenue improve was based mostly on a restoration for American Categorical’ enterprise in comparison with the earlier 12 months’s quarter, the place the pandemic had a big destructive impression on card holder spending.

Click on right here to obtain our most up-to-date Positive Evaluation report on American Categorical (preview of web page 1 of three proven under):

#4: The Coca-Cola Firm (KO)

Dividend Yield: 2.8%
% of Warren Buffett’s Portfolio: 7.2%

CocaCola is the world’s largest beverage firm, because it owns or licenses greater than 500 distinctive nonalcoholic manufacturers. Because the firm’s founding in 1886, it has unfold to greater than 200 nations worldwide.

Coca-Cola reported fourth quarter and full-year earnings on February tenth, 2022, and outcomes had been properly forward of estimates on each the highest and backside traces. Earnings-per-share on an adjusted foundation got here to 45 cents, 4 cents forward of expectations.

Income was $9.5 billion, up practically 11% year-over-year, and beating estimates by $570 million. The corporate reported natural revenues having a 9% achieve year-over-year, together with a ten% improve in pricing and blend, which was offset barely by a 1% decline in quantity.

Natural gross sales in EMEA shot up 17%, whereas North America noticed a really sturdy 14% achieve. Asia-Pacific noticed a 3% decline in natural gross sales. Hydration, sports activities, espresso, and tea grew 12% for the quarter, and diet, juice, dairy, and plant based mostly drinks had been up 11%. The core glowing delicate drinks phase was up 8%, so power was broad-based.

Click on right here to obtain our most up-to-date Positive Evaluation report on Coca-Cola (preview of web page 1 of three proven under):

#5: The Kraft-Heinz Firm (KHC)

Dividend Yield: 4.0%
% of Warren Buffett’s Portfolio: 3.5%

KraftHeinz is a processed meals and drinks firm which owns a product portfolio that consists of meals merchandise similar to condiments, sauces, cheese & dairy, frozen & chilled meals, and toddler eating regimen & nutrition. The corporate was created in 2015 in a merger between Kraft Meals Group and H. J. Heinz Firm, orchestrated by Berkshire Hathaway and 3G Capital.

The KraftHeinz Firm reported its fourth quarter earnings outcomes on February 16. The corporate reported that its revenues totaled $6.7 billion in the course of the quarter, which was down 3% in comparison with the revenues that KraftHeinz generated in the course of the earlier 12 months’s interval. This was barely higher than what the analyst group had anticipated. KraftHeinz’ natural gross sales had been up by 4%, which was higher than the natural gross sales progress price in the course of the earlier quarter. Natural gross sales progress was potential thanks to cost will increase, whereas volumes had been flat.

Click on right here to obtain our most up-to-date Positive Evaluation report on Kraft-Heinz (preview of web page 1 of three proven under):

#6: Moody’s Company (MCO)

Dividend Yield: 0.9%
% of Warren Buffett’s Portfolio: 2.9%

Moody’s was created again in 1909, turning into the primary firm to research securities and price their funding high quality for traders on a big scale. Moody’s started with its Analyses of Railroad Investments in 1909 and has blossomed into the corporate we all know at the moment, with over $6 billion in annual income.

Moody’s remains to be one of many largest gamers within the conventional scores enterprise however has reworked itself in current years by investing closely in knowledge and analytics, which is much less cyclical and has very sturdy margins.

Click on right here to obtain our most up-to-date Positive Evaluation report on Moody’s (preview of web page 1 of three proven under):

#7: Verizon Communications (VZ)

Dividend Yield: 4.7%
% of Warren Buffett’s Portfolio: 2.5%

Verizon Communications is without doubt one of the largest communications companies shares.

Wi-fi contributes threequarters of all revenues, and broadband and cable companies account for a couple of quarter of gross sales. The corporate’s community covers ~300 million individuals and 98% of the U.S. Verizon has now launched 5G ExtremelyWideband in a number of cities because it continues its rollout of 5G service.

Click on right here to obtain our most up-to-date Positive Evaluation report on Verizon (preview of web page 1 of three proven under):

#8: U.S. Bancorp (USB)

Dividend Yield: 3.2%
% of Warren Buffett’s Portfolio: 2.2%

U.S. Bancorp traces its lineage again to 1863 when the First Nationwide Financial institution of Cincinnati opened for enterprise. It has since grown to 70,000 workers, and about $25 billion in annual income.

The financial institution has expanded from a regional participant to a nationwide powerhouse in recent times, turning into the fifthlargest financial institution by property in the U.S. It competes largely in conventional banking actions, however additionally gives wealth administration, cost and funding companies.

Click on right here to obtain our most up-to-date Positive Evaluation report on U.S. Bancorp (preview of web page 1 of three proven under):

#9: Chevron Company (CVX)

Dividend Yield: 4.5%
% of Warren Buffett’s Portfolio: 1.0%

Chevron is the second-largest U.S. oil inventory behind solely Exxon Mobil (XOM). Chevron has elevated its dividend for over 40 consecutive years, making it a Dividend Aristocrat.

In late January, Chevron reported (1/28/22) monetary outcomes for the fourth quarter of fiscal 2021. The corporate minimize its production by 5% over the prior 12 months’s quarter however significantly benefited from the sturdy restoration of the vitality market from the pandemic and the deep manufacturing cuts of OPEC and Russia, which led the value of oil to rally to a 712 months excessive.

The typical realized values of oil and gasoline of Chevron practically doubled over the prior 12 months’s quarter and thus the oil main grew its adjusted earningspershare from $0.16 to $2.56, an almost 812 months excessive. Within the full 12 months, Chevron posted report free money stream of $21.1 billion ($10.98 per share) and achieved a reserve alternative ratio of 112%.

Click on right here to obtain our most up-to-date Positive Evaluation report on Chevron (preview of web page 1 of three proven under):

#10: The Financial institution of New York Mellon Company (BK)

Dividend Yield: 2.5%
% of Warren Buffett’s Portfolio: 1.3%

Berkshire Hathaway’s frequent inventory portfolio comprises simply over 72 million shares of the Financial institution of New York Mellon Company with a market worth of $3.7 billion.

The Financial institution of New York Mellon Company is a world monetary companies establishment that focuses on asset administration, custodial companies, and wealth administration.

The corporate generates practically $17 billion in annual income. The financial institution is current in 35 nations around the globe and acts as extra of an funding manager than a standard financial institution.

Click on right here to obtain our most up-to-date Positive Evaluation report on Financial institution of New York Mellon (preview of web page 1 of three proven under):

#11: DaVita Inc. (DVA)

Dividend Yield: N/A (DaVita doesn’t at the moment pay a quarterly dividend)
% of Warren Buffett’s Portfolio: 1.2%

Berkshire’s funding portfolio comprises simply over 36 million shares of DaVita, Inc., equating to a complete funding of $4 billion on the time of the final 13F submitting. DaVita is about 1.2% of Berkshire’s total funding portfolio.

DaVita gives kidney dialysis companies for sufferers affected by persistent kidney failure or finish stage renal illness. The corporate operates kidney dialysis facilities and gives associated lab companies in outpatient dialysis facilities.

#12: Basic Motors Firm (GM)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 1.1%

Berkshire Hathaway’s funding portfolio owns 60 million shares of GM, for a market worth of roughly $3.5 billion.

Basic Motors Firm designs, builds, and sells vehicles, vans, crossovers, and car elements around the globe. Its high car manufacturers embrace Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.

#13: VeriSign, Inc. (VRSN)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 1.0%

Buffett’s Berkshire Hathaway funding portfolio holds 12.8 million shares of VeriSign, In.c with a market worth of $3.2 billion.

VeriSign is a globally diversified supplier of area identify registry companies and Web safety software program. The corporate operates in a single phase, and has a major worldwide presence.

#14: The Kroger Co. (KR)

Dividend Yield: 1.9%
% of Warren Buffett’s Portfolio: 0.8%

Based in 1883 and headquartered in Cincinnati, Ohio, Kroger is one of many largest retailers within the U.S. The corporate has practically 2,800 retail shops beneath two dozen banners, together with gas facilities, pharmacies and jewellery shops in 35 states. The firm serves practically 11 million prospects a day.

On June 24th, 2021, Kroger elevated its quarterly dividend by 16.7% to $0.21. Shares yield practically 2%.

Click on right here to obtain our most up-to-date Positive Evaluation report on Kroger (preview of web page 1 of three proven under):

#15: Constitution Communications, Inc. (CHTR)

Dividend Yield: N/A (Constitution Communications doesn’t at the moment pay a dividend)
% of Warren Buffett’s Portfolio: 0.8%

Warren Buffett’s funding portfolio comprises 3.8 million shares of Constitution Communications with a market worth of practically $2.8 billion.

Constitution Communications, Inc. operates as a broadband connectivity and cable firm serving residential and industrial prospects in the USA.

#16: The Liberty Sirius XM Group (LSXMK)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 0.7%

On the finish of the fourth quarter, Berkshire held simply over 20 million shares of Liberty SiriusXM.

The Liberty SiriusXM Group, by means of its subsidiaries, engages in leisure companies. It options music, sports activities, leisure, comedy, discuss, information, visitors, and climate channels by means of radio and cellular functions.

#17: Snowflake Inc. (SNOW)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 0.6%

Berkshire owns simply over 6.1 million shares of Snowflake. The stake is price roughly $2.07 billion.

Snowflake gives a cloud-based knowledge platform in the USA and internationally. It gives Knowledge Cloud, an ecosystem that permits prospects to consolidate knowledge right into a single supply.

#18: Visa Inc. (V)

Dividend Yield: 0.7%
% of Warren Buffett’s Portfolio: 0.5%

Warren Buffett’s funding portfolio holds practically 8.3 million shares of Visa with a quarter-end market worth of $1.8 billion.

Visa is the world’s chief in digital funds, with exercise in additional than 200 nations. The corporate’s world processing community gives safe and reliable funds around the globe and is able to dealing with greater than 65,000 transactions a second. In fiscal 12 months 2021 the corporate generated practically $13 billion in revenue.

On October 22nd, 2021, Visa declared a $0.375 quarterly dividend, a 17.2% dividend improve.

Click on right here to obtain our most up-to-date Positive Evaluation report on Visa (preview of web page 1 of three proven under):

#19: Amazon.com, Inc. (AMZN)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 0.5%

As of This autumn 2021, Berkshire owned greater than 533,000 shares of Amazon, price roughly $1.78 billion on the finish of the quarter.

Amazon is a web-based retailer that operates a large e-commerce platform the place customers should purchase just about something with their computer systems or smartphones.

It operates by means of the next segments:

  • North America
  • Worldwide
  • Amazon Internet Companies

The North America and Worldwide segments embrace the worldwide retail platform of client merchandise by means of the corporate’s web sites. The Amazon Internet Companies phase sells subscriptions for cloud computing and storage companies to customers, start-ups, enterprises, authorities businesses, and educational establishments.

#20: Mastercard Integrated (MA)

Dividend Yield: N/A
% of Warren Buffett’s Portfolio: 0.4%

MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments across the world to supply an digital cost community. MasterCard has practically 3 billion credit score and debit playing cards in use.

MasterCard introduced fourth quarter and full 12 months earnings outcomes on 1/27/2022. For the quarter, revenue grew 26.2% to $5.2 billion, which was $30 million greater than anticipated. Adjusted earningspershare of $2.35 compared favorably to adjusted earningspershare of $1.64 within the prior 12 months and was $0.14 forward estimates.

For the 12 months, income improved 23% to $18.9 billion whereas adjusted earningspershare of $8.76 was a 38% improve from 2020

Click on right here to obtain our most up-to-date Positive Evaluation report on MasterCard (preview of web page 1 of three proven under):

Last Ideas

Warren Buffett shares characterize most of the strongest, most long-lived companies round. You’ll be able to see extra high-quality dividend shares within the following Positive Dividend databases:

Alternatively, one other good spot to search for high-quality enterprise is contained in the portfolios of different extremely profitable traders.

To that finish, Positive Dividend has created the next inventory databases:

You may also be seeking to create a extremely custom-made dividend revenue stream to pay for all times’s bills.

The next two lists present helpful info on excessive dividend shares and shares that pay month-to-month dividends:

Lastly, you’ll be able to see the articles under for evaluation on different main funding corporations/asset managers:

Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].





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