NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as George Soros and Carl Icahn.
Today we're taking a closer look at some of those opportunities in the form of 10 dividend-paying stocks from Berkshire Hathaway's portfolio, according to the firm's most recent 13F filing that reflects holdings as of March 31. These stocks are all among the top 30 Berkshire Hathaway stocks that Stockpickr tracks, each comprising at least 1.4% of the portfolio as of March 31, and they have current dividend yields of 1.3% and higher. They are listed by size of dividend yield.
Moody's (MCO) has a current yield of 1.3%, paying a quarterly dividend of 34 cents a share.
Moody's comprises 2.4% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained a 24.7 million-share position in the stock.
TheStreet Ratings team rates Moody's as a buy with a ratings score of B-. TheStreet Ratings team has this to say about its recommendation:
"We rate Moody's (MCO) a buy. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings team include:
- Moody's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Moody's has improved earnings per share by 11.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Moody's increased its bottom line by earning $4.60 versus $3.60 in the prior year. This year, the market expects an improvement in earnings ($4.61 versus $4.60).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Diversified Financial Services industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $218.00 million to $230.10 million.
- Net operating cash flow has increased to $261.80 million or 47.74% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.99%.
You can view the full analysis from the report here: MCO Ratings Report