Top Buffett High-Yield Stocks
Back in December, Stockpickr did an article on the highest-yielding stocks owned by Warren Buffett. It's now time for an update, because many of the stocks have dropped in value, creating higher yields.
So we've reviewed Buffet's stockholdings and compiled an updated portfolio of the Top Buffett High-Yield Stocks. Keep in mind that all dividends are subject to change or elimination.
One of the highest-yielding Buffett stocks is U.S. Bancorp (USB), a Minneapolis-based bank holding company founded in the year of the great crash of 1929, which yields 6.1%. It has more than 2,500 branches and 4,800 ATMs. The company just signed a long-term agreement to keep the bank's name on the U.S. Bank Arena in Cincinnati. The stock has a P/E of 11 and a PEG of 1.46.
USB is also owned by the JPMorgan Intrepid Value-Select Fund, a Morningstar-rated five-star fund managed by Silvio Tarca. The fund has had an average annual return of 10.71% over the last three years. JPMorgan also owns Exxon Mobil (XOM), which yields 1.9%; Pfizer (PFE), yielding 7.1%; and Chevron (CVX), with a yield of 2.8%.
Another Buffett high-yielder is Kraft Foods (KFT), the company famous for its Kraft cheese, Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee and Nabisco and Oreo cookies. Kraft has a yield of 3.8%. Its earnings call is scheduled for Monday, July 28. The stock has a P/E of 18 and a PEG of 2.18.
Kraft is also owned by the Yale University Endowment, which is managed by David Swensen and has about $18 billion under management. He has returned over 17.2% annually over the past 10 years. Yale also owns Douglas Emmett (DEI), which yields 3.6%; Acadia Realty Trust (AKR), with a 3.7% yield; and American International Group (AIG), with a 3.4% yield.
Home Depot (HD) is another Buffett stock with a decent yield, paying 4%. The company reported a 66% drop in earnings on a 3.4% reduction in earnings for its latest quarter. The stock has a P/E of 11 and a PEG of 1.16.
Home Depot is also favored by Edward Lampert, chairman of Sears Holdings (SHLD) and manager of ESL Investments, a $10 billion investment fund that has reportedly returned almost 30% annually since inception. Lampert also likes Clear Channel Communications (CCU), which pays a yield of 2.1%, and AutoZone (AZO), which doesn't pay a dividend. |
