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Warren Buffett's Top 10 Dividend-Paying Stocks for 2014

Stocks in this article: BRK.BBRK.AMCOAXPGSUSBWMTWFCIBMXOMPGKO

NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as George Soros and Carl Icahn.

It should come as no surprise that the most popular of these portfolios is that of renowned investor Warren Buffett, CEO of Berkshire Hathaway (BRK.B) and one of the richest people in the world.

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

Today we're taking a closer look at 10 of Buffett's top dividend stocks, based on Berkshire Hathaway's most recent quarterly 13F filing with the SEC, which reflects holdings as of Sept. 30, 2014. These stocks each comprise at least 2% of Berkshire's portfolio, with current dividend yields of 1.1% and higher. They are listed by size of dividend yield.

10. Moody's

Moody's (MCO) has a current yield of 1.1%, paying a quarterly dividend of 28 cents a share.

Moody's is Buffett's 12th-largest holding, comprising 2.2% of the Berkshire Hathaway portfolio as of Sept. 30. In the most recently reported quarter, Buffett maintained his 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 multiple strengths, 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, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MCO's revenue growth has slightly outpaced the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.59% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MCO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Moody's has improved earnings per share by 20.5% 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 $3.60 versus $3.03 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.60).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Diversified Financial Services industry average. The net income increased by 17.0% when compared to the same quarter one year prior, going from $183.90 million to $215.20 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, Moody's return on equity significantly exceeds that of both the industry average and the S&P 500.

You can view the full analysis from the report here: MCO Ratings Report

Must Read: 10 Stocks George Soros Is Buying in 2014

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