Warren Buffett's 10 Favorite Dividend Stocks

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

Stock 1: ConocoPhillips (COP)

Dividend Yield: 4.11%

BRK weighting as of 12/31/2013: 0.75%

Value of holdings: $782.8 million

This Houston-based oil giant is the third largest integrated energy company in the U.S. and fifth-largest refiner in the world. The company produces, transports and markets crude oil, natural gas and NGLs to a global marketplace.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates CONOCOPHILLIPS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONOCOPHILLIPS (COP) 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 increase in net income, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 74.4% when compared to the same quarter one year prior, rising from $1,426.00 million to $2,487.00 million.
  • 38.26% is the gross profit margin for CONOCOPHILLIPS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.76% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $3,911.00 million or 1.05% when compared to the same quarter last year. In addition, CONOCOPHILLIPS has also vastly surpassed the industry average cash flow growth rate of -52.18%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.

MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 2: Kraft Foods (KRFT)

Dividend Yield: 3.71%

BRK weighting as of 12/31/2013: 0.01%

Value of holdings: $10.4 million

Kraft Foods is a food and beverage processing and packaging giant based out of Northfield, Illinois. Some of its most popular brands include Cheez Whiz, Cool Whip, Jell-O, Kool-Aid and Oscar Mayer.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates KRAFT FOODS GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate KRAFT FOODS GROUP INC (KRFT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."

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

  • Compared to other companies in the Food Products industry and the overall market, KRAFT FOODS GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • KRFT's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has declined marginally to $924.00 million or 4.54% when compared to the same quarter last year. Despite a decrease in cash flow KRAFT FOODS GROUP INC is still fairing well by exceeding its industry average cash flow growth rate of -36.83%.
  • Currently the debt-to-equity ratio of 1.92 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, KRFT maintains a poor quick ratio of 0.80, which illustrates the inability to avoid short-term cash problems.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 3: General Electric (GE)

Dividend Yield: 3.22%

BRK weighting as of 12/31/2013: 0.28%

Value of holdings: $296.7 million

General Electric is a conglomerate which deals in energy, capital finance and industrial and consumer products, such as appliances and electronics. General Electric is headquartered in Fairfield, Connecticut.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL ELECTRIC CO (GE) 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, growth in earnings per share, increase in stock price during the past year, reasonable valuation levels and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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

  • GE's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GENERAL ELECTRIC CO has improved earnings per share by 19.5% 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, GENERAL ELECTRIC CO increased its bottom line by earning $1.47 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $1.47).
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 4.8% when compared to the same quarter one year prior, going from $4,011.00 million to $4,204.00 million.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 4: Procter & Gamble (PG)

Dividend Yield: 3.06%

BRK weighting as of 12/31/2013: 4.1%

Value of holdings: ~$4.3 billion

One of America's largest consumer goods companies, Procter & Gamble's products include personal care, household cleaning, laundry products and prescription medicine. Some of its most recognizable brands are Tide, Gillette, Duracell, Pantene and Pampers.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates PROCTER & GAMBLE CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate PROCTER & GAMBLE CO (PG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

  • PG's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that PG's debt-to-equity ratio is low, the quick ratio, which is currently 0.50, displays a potential problem in covering short-term cash needs.
  • PROCTER & GAMBLE CO's earnings per share declined by 15.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PROCTER & GAMBLE CO increased its bottom line by earning $3.87 versus $3.12 in the prior year. This year, the market expects an improvement in earnings ($4.21 versus $3.87).
  • The gross profit margin for PROCTER & GAMBLE CO is rather high; currently it is at 53.76%. Regardless of PG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PG's net profit margin of 15.38% compares favorably to the industry average.
  • In its most recent trading session, PG has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 5: Coca-Cola Co (KO)

Dividend Yield: 2.93%

BRK weighting as of 12/31/2013: 15.8%

Value of holdings: ~$16.52 billion

Best known for its eponymous soda, The Coca-Cola Company also owns or licenses more than 500 nonalcoholic drinks brands, including Sprite, Fanta, Dasani, Powerade, and Minute Maid.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate COCA-COLA CO (KO) a BUY. This is driven by a few notable 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 expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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

  • The gross profit margin for COCA-COLA CO is rather high; currently it is at 65.74%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.48% trails the industry average.
  • Net operating cash flow has remained constant at $2,830.00 million with no significant change when compared to the same quarter last year. In addition, COCA-COLA CO has modestly surpassed the industry average cash flow growth rate of -5.45%.
  • COCA-COLA CO's earnings per share declined by 7.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, COCA-COLA CO reported lower earnings of $1.90 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.90).
  • KO, with its decline in revenue, slightly underperformed the industry average of 3.4%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Beverages industry and the overall market, COCA-COLA CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 6: Johnson & Johnson (JNJ)

Dividend Yield: 2.87%

BRK weighting as of 12/31/2013: 0.03%

Value of holdings: $30 million

Another consumer goods pick, Johnson & Johnson is best known for brands such as Neutrogena, Band-Aid, Listerine, Tylenol, Splenda, Immodium and Mylanta.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates JOHNSON & JOHNSON as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate JOHNSON & JOHNSON (JNJ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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

  • JNJ's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 4.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JNJ's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JNJ has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • JOHNSON & JOHNSON has improved earnings per share by 35.2% 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, JOHNSON & JOHNSON increased its bottom line by earning $4.82 versus $3.87 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $4.82).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $2,567.00 million to $3,519.00 million.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 7: United Parcel Service (UPS)

Dividend Yield: 2.64%

BRK weighting as of 12/31/2013: 0.01%

Value of holdings: $6.2 million

UPS is a package delivery company headquartered in Atlanta, Georgia. According to the company, it processes and delivers an average 16.3 million packages and documents each day.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is driven by a number of 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 impressive record of earnings per share growth, revenue growth, increase in stock price during the past year and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

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

  • UNITED PARCEL SERVICE INC reported significant earnings per share improvement 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, UNITED PARCEL SERVICE INC increased its bottom line by earning $4.62 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($5.24 versus $4.62).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Air Freight & Logistics industry average, but is greater than that of the S&P 500. The net income increased by 166.8% when compared to the same quarter one year prior, rising from -$1,748.00 million to $1,167.00 million.
  • The gross profit margin for UNITED PARCEL SERVICE INC is currently extremely low, coming in at 12.74%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, UPS's net profit margin of 7.79% compares favorably to the industry average.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 8: Exxon Mobil (XOM)

Dividend Yield: 2.62%

BRK weighting as of 12/31/2013: 4%

Value of holdings: ~$4.16 billion

Exxon Mobil, based in Irving, Texas, is an oil and gas refining and marketing company. Its primary business is in energy, including the exploration and production of crude oil and natural gas.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate EXXON MOBIL CORP (XOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

  • The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • EXXON MOBIL CORP's earnings per share declined by 13.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, EXXON MOBIL CORP reported lower earnings of $7.37 versus $9.70 in the prior year. This year, the market expects an improvement in earnings ($7.75 versus $7.37).
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $9,950.00 million to $8,350.00 million.
MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 9: Wells Fargo (WFC)

Dividend Yield: 2.59%

BRK weighting as of 12/31/2013: 20.1%

Value of holdings: ~$21.04 billion

Banking and financial services company Wells Fargo operates in three segments: community banking, wholesale banking, and brokerage and retirement. The firm is headquartered in San Francisco.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, expanding profit margins, good cash flow from operations and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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

  • 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 31.08% 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, WFC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WELLS FARGO & CO has improved earnings per share by 9.9% 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, WELLS FARGO & CO increased its bottom line by earning $3.89 versus $3.36 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.89).
  • The gross profit margin for WELLS FARGO & CO is currently very high, coming in at 93.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.85% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 72.70% to $14,423.00 million when compared to the same quarter last year. Despite an increase in cash flow of 72.70%, WELLS FARGO & CO is still growing at a significantly lower rate than the industry average of 167.25%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, WELLS FARGO & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

MUST Read: Warren Buffett's Annual Letter to Shareholders

Stock 10: Wal-Mart (WMT)

Dividend Yield: 2.52%

BRK weighting as of 12/31/2013: 3.7%

Value of holdings: ~$3.89 billion

The world's largest retailer, Wal-Mart, operates its U.S. division, Walmart International and members-only Sam's Club. It is headquartered in Bentonville, Arkansas.

MUST Read: Warren Buffett's Annual Letter to Shareholders

TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WAL-MART STORES INC (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

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

  • WMT's revenue growth has slightly outpaced the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $9,937.00 million or 2.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.91%.
  • WAL-MART STORES INC's earnings per share declined by 19.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WAL-MART STORES INC reported lower earnings of $4.86 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($5.35 versus $4.86).
  • In its most recent trading session, WMT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, WAL-MART STORES INC's return on equity exceeds that of both the industry average and the S&P 500.
MUST Read: Warren Buffett's Annual Letter to Shareholders

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