Warren Buffett's Top 10 Dividend Stocks

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 and one of the richest people in the world. Given investors' huge desire for yield during a low yield environment, let's take 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 March 31, 2014. These stocks each comprise at least 1% of Berkshire's portfolio, with current dividend yields of 1.5% and higher. They are listed by size of dividend yield. Read More: Warren Buffett's Top 25 Stocks for 2014 10. Goldman Sachs Goldman Sachs has a current yield of 1.3%, paying a quarterly dividend of 55 cents a share. The stock was recently featured in "5 Dividend Stocks Ready to Pay You More." Goldman Sachs is Buffett's 11th-largest holding, comprising 2% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained his 12.6 million-share position in the stock. Goldman Sachs is also a top holding in Mohnish Pabrai's portfolio. TheStreet Ratings team rates Goldman Sachs Group a buy with a Ratings score of B+. TheStreet Ratings team has this to say about its recommendation: "We rate Goldman Sachs Group (GS) 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, attractive valuation levels, growth in earnings per share, increase in net income 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 are as follows: GS's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share. Goldman Sachs Group has improved earnings per share by 10.8% 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, Goldman Sachs Group increased its bottom line by earning $15.47 vs. $14.15 in the prior year. This year, the market expects an improvement in earnings ($16.80 vs. $15.47). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 5.5% when compared with the same quarter one year prior, going from $1,931.00 million to $2,037.00 million. 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. You can view the full analysis from the report here: GS Ratings Report Read More: 8 Stocks George Soros Is Buying in 2014 9. Graham Holdings Graham Holdings , formerly the Washington Post Company, has a current yield of 1.5%, paying a quarterly dividend of $2.55 a share. Graham Holdings is Buffett's 14th-largest holding, comprising 1.1% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained his previous position of 1.7 million shares in the stock. TheStreet Ratings team rates Graham Holdings a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate Graham Holdings (GHC) 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, solid stock price performance, 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 are as follows: GHC's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share. GHC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GHC has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs. Powered by its strong earnings growth of 504.45% and other important driving factors, this stock has surged by 29.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. Graham Holdings 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, Graham Holdings increased its bottom line by earning $23.22 vs. $8.90 in the prior year. This year, the market expects an improvement in earnings ($32.67 vs. $23.22). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the diversified consumer services industry. The net income increased by 2467.3% when compared to the same quarter one year prior, rising from $5.16 million to $132.52 million. You can view the full analysis from the report here: GHC Ratings Report Read More: Warren Buffett's Top 25 Stocks for 2014 8. U.S. Bancorp U.S. Bancorp has a current yield of 2.3%, paying a quarterly dividend of 24.5 cents a share. U.S. Bancorp is Buffett's eighth-largest holding as of March 31, comprising 3.2% of the Berkshire Hathaway portfolio. In the most recently reported quarter, Buffett increased his position in the stock by 0.9% to 80 million shares. TheStreet Ratings team rates U.S. Bancorp a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its 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 revenue growth, increase in stock price during the past year, increase in net income, growth in earnings per share and expanding profit margins. 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 are as follows: USB's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from $1,484.00 million to $1,495.00 million. U.S. Bancorp's earnings per share improvement from the most recent quarter was slightly positive. 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, U.S. Bancorp increased its bottom line by earning $3.01 versus $2.84 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $3.01). The gross profit margin for U.S. Bancorp is currently very high, coming in at 87.58%. 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 27.22% trails the industry average. You can view the full analysis from the report here: USB Ratings Report Read More: 8 Stocks George Soros Is Buying in 2014 7. IBM International Business Machines has a current yield of 2.2%, paying a quarterly dividend of $1.10 a share. The stock shows up on a list of Warren Buffett's 10 Favorite Growth Stocks and was featured recently in "Hedge Funds Hate These 5 Stocks -- Should You?." IBM is Buffett's fourth-largest holding, comprising 12.4% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett increased the number of shares Berkshire held of the stock to 68.4 million shares total. IBM is also a top holding in Ken Fisher's portfolio. TheStreet Ratings team rates IBM a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate International Business Machines (IBM) 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 growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. 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: International Business Machines has improved earnings per share by 41.6% 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, International Business Machines increased its bottom line by earning $15.02 versus $14.41 in the prior year. This year, the market expects an improvement in earnings ($17.90 versus $15.02). The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 28.2% when compared to the same quarter one year prior, rising from $3,226.00 million to $4,137.00 million. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the IT Services industry and the overall market, International Business Machines' return on equity significantly exceeds that of both the industry average and the S&P 500. Net operating cash flow has increased to $3,579.00 million or 12.75% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.20%. The gross profit margin for International Business Machines is rather high; currently it is at 54.08%. 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 16.97% trails the industry average. You can view the full analysis from the report here: IBM Ratings Report Read More: Warren Buffett's Top 25 Stocks for 2014 6. Wal-Mart Wal-Mart Stores has a current yield of 2.5%, paying a quarterly dividend of 48 cents a share. The stock also shows up on a list of Warren Buffett's 10 Favorite Growth Stocks. Wal-Mart is Buffett's fifth-largest holding, comprising 4.2% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett increased his position in Wal-Mart by more than 17% to 58.1 million total shares. TheStreet Ratings team rates Wal-Mart a buy with a Ratings score of B+. TheStreet Ratings team has this to say about its recommendation: "We rate Wal-Mart Stores (WMT) 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, good cash flow from operations, reasonable valuation levels 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 are as follows: WMT's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. 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. Net operating cash flow has increased to $5,939.00 million or 21.35% when compared to the same quarter last year. In addition, WAL-MART STORES INC has also modestly surpassed the industry average cash flow growth rate of 13.02%. Wal-Mart Stores' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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 reported lower earnings of $4.86 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($5.16 versus $4.86). 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' return on equity exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: WMT Ratings Report Read More: 8 Stocks George Soros Is Buying in 2014 5. Exxon Mobil Exxon Mobil has a current yield of 2.6%, paying a quarterly dividend of 69 cents a share. Exxon is Buffett's seventh-largest holding, comprising 3.8% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained a 41.1 million-share position in the stock. TheStreet Ratings team rates Exxon Mobil a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate Exxon Mobil (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."Highlights from the analysis by TheStreet Ratings Team goes as follows: Net operating cash flow has increased to $15,103.00 million or 11.11% when compared to the same quarter last year. Despite an increase in cash flow, Exxon Mobil's average is still marginally south of the industry average growth rate of 16.72%. 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. XOM's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that XOM's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs. Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. You can view the full analysis from the report here: XOM Ratings Report Read More: Warren Buffett's Top 25 Stocks for 2014 4. Wells Fargo Wells Fargo has a current yield of 2.7%, paying a quarterly dividend of 35 cents a share. The stock was also featured recently in "5 Big Stocks to Trade for Gains This Summer." Wells Fargo is Buffett's largest holding as of March 31, comprising 21.8% of the Berkshire Hathaway portfolio. In the most recently reported quarter, Buffett maintained a position of 463.5 million total shares in the stock Wells Fargo is also a top holding in Ken Fisher's portfolio. TheStreet Ratings team rates Wells Fargo a buy with a Ratings score of A. TheStreet Ratings team has this to say about its recommendation: "We rate Wells Fargo (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 increase in stock price during the past year, increase in net income, growth in earnings per share and expanding profit margins. 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 are as follows: The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 3.8% when compared to the same quarter one year prior, going from $5,519.00 million to $5,726.00 million. Wells Fargo's earnings per share improvement from the most recent quarter was slightly positive. 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 increased its bottom line by earning $3.89 versus $3.36 in the prior year. This year, the market expects an improvement in earnings ($4.12 versus $3.89). The gross profit margin for Wells Fargo is currently very high, coming in at 94.48%. 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 25.94% trails the industry average. Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.6%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: WFC Ratings Report Read More: 8 Stocks George Soros Is Buying in 2014 3. Coca-Cola Coca-Cola has a current yield of 3%, paying a quarterly dividend of 30.5 cents a share. The stock shows up on a recent list of 5 Stocks Hedge Funds Love This Summer and was featured recently in "The 4 Top Reasons to Buy These 4 Fast Food Staple Stocks on a Dip." Coca-Cola is Buffett's second-largest holding, comprising 14.6% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained his 400 million share position in the stock. TheStreet Ratings team rates Coca-Cola a buy with a Ratings score of A. TheStreet Ratings team has this to say about its recommendation: "We rate Coca-Cola (KO) 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 notable return on equity. 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 are as follows: The gross profit margin for Coca-Cola is rather high; currently it is at 65.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.63% is above that of the industry average. Coca-Cola's earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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 reported lower earnings of $1.90 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.90). KO, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. 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's return on equity significantly exceeds that of both the industry average and the S&P 500. In its most recent trading session, KO 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. You can view the full analysis from the report here: KO Ratings Report Read More: Warren Buffett's Top 25 Stocks for 2014 2. Procter & Gamble Procter & Gamble has a current yield of 3.2%, paying a quarterly dividend of 64.25 cents a share. P&G is Buffett's sixth-largest holding, comprising 4% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett maintained a 52.8 million-share position in the stock. P&G is also a top holding in Ken Fisher's portfolio. TheStreet Ratings team rates Procter & Gamble a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate Procter & Gamble (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 increase in net income, good cash flow from operations, growth in earnings per share, 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 lackluster performance in the stock itself."Highlights from the analysis by TheStreet Ratings Team are as follows: The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Household Products industry average. The net income increased by 1.7% when compared to the same quarter one year prior, going from $2,566.00 million to $2,609.00 million. Net operating cash flow has slightly increased to $4,109.00 million or 6.39% when compared to the same quarter last year. In addition, Procter & Gamble has also modestly surpassed the industry average cash flow growth rate of 6.02%. Procter & Gamble's earnings per share improvement from the most recent quarter was slightly positive. 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, Procter & Gamble increased its bottom line by earning $3.87 versus $3.12 in the prior year. This year, the market expects an improvement in earnings ($4.19 versus $3.87). The current debt-to-equity ratio, 0.52, 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. The gross profit margin for Procter & Gamble is rather high; currently it is at 52.73%. 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 12.69% compares favorably to the industry average. You can view the full analysis from the report here: PG Ratings Report Read More: 8 Stocks George Soros Is Buying in 2014 1. General Motors General Motors has a current yield of 3.4%, paying a quarterly dividend of 30 cents a share. GM is Buffett's 15th-largest holding, comprising 1% of the Berkshire Hathaway portfolio as of March 31. In the most recently reported quarter, Buffett trimmed his position in the stock significantly, selling off a quarter of his position in the stock, or 10 million shares. As of March 31, he still owned 30 million shares. GM is also a top holding in George Soros' portfolio. TheStreet Ratings team rates General Motors a buy with a Ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate General Motors (GM) 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 and largely solid financial position with reasonable debt levels by most measures. 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 are as follows: GM's revenue growth trails the industry average of 21.5%. Since the same quarter one year prior, revenue 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. The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems. General Motors has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, General Motors reported lower earnings of $2.35 versus $2.93 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $2.35). The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 80.3% when compared to the same quarter one year ago, falling from $1,414.00 million to $278.00 million. In its most recent trading session, GM 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. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative. You can view the full analysis from the report here: GM Ratings Report To see these stocks in action, check out the Warren Buffett's Top 10 Dividend Stocks portfolio. For Warren Buffett's top 30 holdings, visit the Warren Buffett portfolio at Stockpickr. Read More: Warren Buffett's Top 25 Stocks for 2014

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