This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Warren Buffett's 10 Favorite Dividend Stocks

Stocks in this article: WMT COP KRFT PG GE KO JNJ UPS XOM WFC WMT

NEW YORK (TheStreet) -- Famed investor Warren Buffett has a proven track record of picking stocks that add value, while getting rid of those that deplete it. In his more than 60 years in the investment community, he's amassed a fortune which has him consistently ranked as one of the world's wealthiest.

One of the fathers of the modern value investing philosophy, Buffett evaluates a stock based on whether its intrinsic value is less than its market value; that is, truly outstanding companies which haven't realized their full market potential (or at least, the investing community hasn't yet). In this way, Buffett has managed to generate a net worth of $58.2 billion, according to Forbes

Berkshire Hathaway  (BRK.A), of which Buffett acts as CEO and its largest shareholder, adopts his principles of identifying intrinsically-valuable shares and routinely invests in some of the most profitable blue-chip companies on the U.S. market. 

In particular, the company is at its best when it is weathering unpredictable stock movements and a depressed market. The company has underperformed the S&P 500 in only 10 of its 49 years of investing -- 9 of the 10 cases saw the S&P 500 exceed 15% in gains for the year. 

In his most recent annual letter to shareholders, Buffett noted, "Both Berkshire's book value and intrinsic value will outperform the S&P in years when the market is down or moderately up."

One method to hedge bad market turns with regular dividend-paying stocks. Buffett recently gave insight into his fund's favorites in a 13-F filing with the Securities and Exchange Commission, a required ownership inventory from institutional investment managers with more than $100 million in securities. The mandatory filing is submitted within 45 days of each quarter's end and provides a snapshot of how and where the firm invested in the three months to December. 

Here are his portfolio's top 10 dividend-yield stocks for the year-ending quarter.

Note: All data is sourced from Berkshire Hathaway's 13F-HR SEC filing.

MUST Read: Warren Buffett's Annual Letter to Shareholders

1 of 11

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs