Warren Buffett's Favorite 16 Dividend Stocks for 2014

NEW YORK (TheStreet) -- Warren Buffett is considered the most respected and successful investor. Often called "The Oracle of Omaha" for his impressive investing prowess, he is among the world's wealthiest people.

Buffett studied under the legendary Benjamin Graham at Columbia University who had a major impact on Buffett's life and investment strategies.

Buffett is chairman of Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK.A) which he built from a textile company into a major corporation with a market cap over $200 billion. Under Buffett's leadership, Berkshire shares averaged a 21.4% compounded annual gain in per share book value from 1965-2006.

He follows a value investing strategy that is an adaptation of Graham's approach: Discipline, patience and value consistently outperforms the market. His moves are followed by investors worldwide. Buffett seeks to acquire great companies trading at a discount to their intrinsic value, and to hold onto them for a long time. He will only invest in businesses that he understands, and always insists on a margin of safety.

Regarding the types of businesses Berkshire likes to purchase, Buffett has said,"We want businesses to be one that we can understand, with favorable long-term prospects, operated by honest and competent people, and available at a very attractive price."

What follows are Buffett's top 16 stocks with the highest dividend yield as of March 31, 2014.

1. Verizon Communications  (VZ)

Shares Held by Warren Buffett's Berkshire Hathaway:  11,023,000
Holdings Value:  $524 million
Portfolio Weighting as of 3/31/2014:  0.50%
Yield: 4.39%

Verizon Communications Inc. is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its two segments are Wireless and Wireline.

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

"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by several positive factors, 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, expanding profit margins, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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

2. Kraft Foods Group Inc. (KRFT)

Shares Held by Warren Buffett's Berkshire Hathaway: 193,000
Holding Value: $10.8 million
Portfolio Weighting as of 3/31/2014: 0.01%
Yield: 3.64%

Free Report:  Jim Cramer's Top Stocks for 2014

Kraft Foods Group Inc is a consumer packaged food and beverage company. It manufactures and markets food and beverage products, including refrigerated meals, refreshment beverages and coffee, cheese, and other grocery products.

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, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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

3. Sanofi (SNY)

Shares Held by Warren Buffett's Berkshire Hathaway: 3,906,000
Holding Value: $204.2 million
Portfolio Weighting as of 3/31/2014: 0.19%
Yield: 3.63%

Free Report:  Jim Cramer's Top Stocks for 2014

Sanofi is a healthcare company, engaged in the research, development, manufacture and marketing of healthcare products.

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

"We rate SANOFI (SNY) 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 revenue growth, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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

4. ConocoPhillips ( COP)

Shares Held by Warren Buffett's Berkshire Hathaway: 11,080,000
Holdings Value: $779 million
Portfolio: Weighting as of 3/31/2014: 0.74%
Yield: 3.50%

Free Report:  Jim Cramer's Top Stocks for 2014

ConocoPhillips is engaged in exploration, development and production of crude oil and natural gas.

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

"We rate CONOCOPHILLIPS (COP) 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, solid stock price performance, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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

5. General Electric (GE)

Shares Held by Warren Buffett's Berkshire Hathaway: 10,586,000
Holdings Value: $274 million
Portfolio: Weighting as of 3/31/2014: 0.26%
Yield: 3.08%

Free Report:  Jim Cramer's Top Stocks for 2014

General Electric Co is a diversified company with products & services that range from aircraft engines, power generation, oil & gas production equipment, & household appliances to medical imaging, business & consumer financing and industrial products.

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 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 revenue growth, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

6. Procter & Gamble Co. (PG)

Shares Held by Warren Buffett's Berkshire Hathaway: 52,793,000
Holdings Value: $4,255 million
Portfolio: Weighting as of 3/31/2014: 4%
Yield: 3.04%

Free Report:  Jim Cramer's Top Stocks for 2014

Procter & Gamble Co provides branded consumer packaged goods. It markets its products in about 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores, department stores among others.

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 good cash flow from operations, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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

7. Coca-Cola Co. (KO)

Shares Held by Warren Buffett's Berkshire Hathaway: 400,000,000
Holdings Value: $15,464 million
Portfolio: Weighting as of 3/31/2014: 14.6%
Yield: 2.83%

Free Report:  Jim Cramer's Top Stocks for 2014

Coca-Cola Co manufactures, distributes and markets non-alcoholic beverage concentrates and syrups.

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."

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

8. Johnson & Johnson (JNJ)

Shares Held by Warren Buffett's Berkshire Hathaway: 327,000
Holdings Value: $32 million
Portfolio: Weighting as of 3/31/2014: 0.03%
Yield: 2.62%

Free Report:  Jim Cramer's Top Stocks for 2014

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.

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."

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

9. United Parcel Service Inc. (UPS)

Shares Held by Warren Buffett's Berkshire Hathaway: 59,000
Holdings Value: $5.8 million
Portfolio: Weighting as of 3/31/2014: 0.01%
Yield: 2.57%

Free Report:  Jim Cramer's Top Stocks for 2014

United Parcel Service Inc (UPS) is a package delivery organization less-than-truckload industry & provider of supply chain management solutions. It operates in three segments; U.S. Domestic Package, International Package and Supply Chain & Freight.

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

"We rate UNITED PARCEL SERVICE INC (UPS) 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, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

10. Exxon Mobil Corporation (XOM)

Shares Held by Warren Buffett's Berkshire Hathaway: 41,130,000
Holdings Value: $4,017 million
Portfolio: Weighting as of 3/31/2014: 3.8%
Yield: 2.56%

Free Report:  Jim Cramer's Top Stocks for 2014

Exxon Mobil Corporation is engaged in energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.

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 attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."

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

11. Wells Fargo & Co. (WFC)

Shares Held by Warren Buffett's Berkshire Hathaway: 463,458,000
Holdings Value: $23,052 million
Portfolio: Weighting as of 3/31/2014: 21.8%
Yield: 2.55%

Free Report:  Jim Cramer's Top Stocks for 2014

Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.

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, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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

12. Wal-Mart Stores Inc. (WMT)

Shares Held by Warren Buffett's Berkshire Hathaway: 58,052,000
Holdings Value: $4,437 million
Portfolio: Weighting as of 3/31/2014: 4.2%
Yield: 2.47%

Free Report:  Jim Cramer's Top Stocks for 2014

Wal-Mart Stores Inc, operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club in three categories retail, wholesale and others.

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, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

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

13. M&T Bank Corp. (MTB)

Shares Held by Warren Buffett's Berkshire Hathaway: 5,382,000
Holdings Value: $652 million
Portfolio: Weighting as of 3/31/2014: 0.62%
Yield: 2.36%

Free Report:  Jim Cramer's Top Stocks for 2014

M&T Bank Corp is a New York business corporation and a bank holding company. The company through subsidiaries provides individuals, corporations and other businesses, and institutions with commercial and retail banking services.

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

"We rate M & T BANK CORP (MTB) 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 expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

14. U.S. Bancorp (USB)

Shares Held by Warren Buffett's Berkshire Hathaway: 80,027,000
Holdings Value: $3,429 million
Portfolio: Weighting as of 3/31/2014: 3.2%
Yield: 2.27%

Free Report:  Jim Cramer's Top Stocks for 2014

U.S. Bancorp is a multi-state financial holding company. It provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services.

TheStreet Ratings team rates U S BANCORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate U S BANCORP (USB) 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 good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

15. Deere & Co. (DE)
Shares Held by Warren Buffett's Berkshire Hathaway: 3,979,000
Holdings Value: $361 million
Portfolio: Weighting as of 3/31/2014: 0.34%
Yield: 2.24%

Free Report:  Jim Cramer's Top Stocks for 2014

Deere & Company operates in three business segments: agriculture/ turf, construction/forestry, & financial services. The company helps customers to be more productive as they help to improve the quality of life for people around the world.

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

"We rate DEERE & CO (DE) 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 attractive valuation levels, notable return on equity 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."

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

16. International Business Machines Corp.  (IBM)

Shares Held by Warren Buffett's Berkshire Hathaway: 68,355,000
Holdings Value: $13,157 million
Portfolio: Weighting as of 3/31/2014: 12.4%
Yield: 2.12%

Free Report:  Jim Cramer's Top Stocks for 2014

International Business Machines Corp is an Information Technology (IT) company. It creates business value for clients and solves business problems through integrated solutions that leverage information technology & knowledge of business processes.

TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTL BUSINESS MACHINES CORP (IBM) 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 notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing