NEW YORK (TheStreet) -- Especially in an uncertain market, investors cling to dividend-paying stocks. But with so many dividend stocks to choose from, it can be a challenge to figure out which ones make the best safety net for your portfolio.
Why not let a pro or two help you decide? Warren Buffett, one of the greatest and most-followed investors ever, is no stranger to dividend investing. His Berkshire Hathaway portfolio contains 47 stocks, of which 33 currently pay dividends.
Previously, we compiled a list of his top 10 dividend stocks, but today we're taking it one step further and comparing that list against the holdings of another well-loved stock picker, TheStreet's Jim Cramer.
Cramer, the co-manager of the 26-stock Action Alerts PLUS charitable portfolio, has four holdings in common with Buffett. They all pay dividends. They are ordered here by increasing yield.
MasterCard (MA - Get Report) pays a quarterly dividend of 16 cents, for a current dividend yield of 0.7%. Buffett owns 5.2 million shares as of the most recently reported quarter, representing 0.4% of the Berkshire Hathaway portfolio. He decreased his position slightly by 3.2% from the previous quarter.
TheStreet Ratings team rates MasterCard as a buy with a ratings score of A+. You can view the full analysis from the report here: MA Ratings Report.
3. Wells Fargo
Wells Fargo (WFC - Get Report) pays a quarterly dividend of 38 cents, for a yield of 2.6% at current prices. The stock was Berkshire Hathaway's top holding as of its most recent filing, comprising 23.9% of the total portfolio. Buffett owns 470.3 million shares of the stock, which represents a slight increase of 1.5% from the previous quarter.
Last night on CNBC's "Mad Money," Cramer said Wells Fargo was both the highest-quality bank and the most expensive one. His reasons for owning it in Action Alerts PLUS include its growth potential and, of course, its yield.
Wells Fargo reported quarterly earnings of $1.03 per share on revenue of $21.32 billion, compared with analyst expectations for $1.01 per share and $21.59 billion in revenue.
Cramer and Buffett aren't the only pros who like Wells Fargo. TheStreet's Gregg Greenberg also featured it recently in "3 Bank Stocks That a Tiger Wealth Management Partner Loves."
TheStreet Ratings team rates Wells Fargo a buy with a ratings score of A. You can view the full analysis from the report here: WFC Ratings Report.
For another take on Wells Fargo, check out Richard Saintvilus' "Take Wells Fargo's Steady Dividend, Value and Safety to the Bank."
2. Johnson & Johnson
Johnson & Johnson (JNJ - Get Report) pays a quarterly dividend of 75 cents a share, representing a 3% yield at current prices. Buffett's Berkshire Hathaway reported a 327,100-share stake in the stock in its most recent quarterly filing, an unchanged position from the previous quarter. The stock comprises just 0.03% of the total Berkshire portfolio.
Following Johnson & Johnson's earnings report last week, Cramer said that Action Alerts PLUS owns the stock because it's "inexpensive." The stock could "go much higher" if it can get the medical device part of the company right -- which it didn't, he said.
"We're not going to dump it, but J&J was another disappointment, frankly," Cramer said.
According to TheStreet's Brian Sozzi, J&J is one of five stocks that show the U.S. economy is strengthening.
TheStreet Ratings team rates Johnson & Johnson as a buy with a ratings score of A-. You can view the full analysis from the report here: JNJ Ratings Report.
1. General Motors
General Motors (GM - Get Report) pays a quarterly dividend of 36 cents a share, for a current yield of 4.7%. The stock comprises 1.4% of Buffett's portfolio as of the most recent filing, with a 41 million-share position that was unchanged from the prior quarter.
On July 21, Cramer called GM a "horrible stock" and a "disaster," citing bad management, poor performance of its Latin American division and apathetic shareholders, among other issues. Cramer said he can't yet exit his Action Alerts PLUS position due to restrictions.
General Motors is set to report earnings on July 23.TheStreet Ratings team rates General Motors as a buy with a ratings score of B. You can view the full analysis from the report here: GM Ratings Report.