Warren Buffett’s Top 20 Highest Conviction Stock Picks

Up to date on February twenty fifth, 2022 by Bob Ciura

To spend money on nice companies, you must discover them first. That’s the place Warren Buffett is available in…

Berkshire Hathaway (BRK.B) has an fairness funding portfolio price greater than $330 billion, as of the top of the 2021 fourth quarter.

Berkshire Hathaway’s portfolio is stuffed with high quality shares. You may ‘cheat’ from Warren Buffett shares to search out picks for your portfolio. That’s as a result of Buffett (and different institutional traders) are required to periodically present their holdings in a 13F Submitting.

You may see all of Warren Buffett’s inventory holdings (together with related monetary metrics like dividend yields and price-to-earnings ratios) by clicking on the hyperlink under:

This text analyzes Warren Buffett’s high 20 shares based mostly on data disclosed in his This fall 2021 13F submitting.

Notice: 13F submitting efficiency is totally different than fund efficiency. See how we calculate 13F submitting efficiency right here.

Desk of Contents

You may skip to a selected part with the desk of contents under. Shares are listed by proportion of the full portfolio, from highest to lowest.

How To Use Warren Buffett Shares To Discover Funding Concepts

Having a database of Warren Buffett shares is extra highly effective when you may have the power to filter it based mostly on essential investing metrics.

That’s why this text’s Excel obtain is so helpful…

It permits you to search Warren Buffett shares to search out dividend funding concepts that match your particular portfolio.

For these of you unfamiliar with Excel, this part will present you methods to filter Warren Buffett shares for 2 essential investing metrics – price-to-earnings ratio and dividend yield.

Step 1: Click on on the filter icon within the column for dividend yield or price-to-earnings ratio.

Step 2: Filter every metric to search out high-quality shares. Two examples are supplied under.

Instance 1: To seek out shares with dividend yields above 1% and record them in descending order, click on the ‘Dividend Yield’ filter and do the next:

Instance 2: To seek out shares with price-to-earnings ratios under 25 and record them in descending order, click on the ‘Worth-to-Earnings Ratio’ filter and do the next:

Warren Buffett & Dividend Shares

Buffett has grown his wealth by investing in and buying companies with sturdy aggressive benefits buying and selling at honest or higher costs.

Most traders know Warren Buffett appears to be like for high quality, however few know the diploma to which he invests in dividend shares:

• Over half of Warren Buffett’s high 10 shares pay dividends
• His high 5 holdings have a mean dividend yield of two.2% (and make up 77% of his portfolio)
• A lot of his dividend shares have paid rising dividends over a long time

Warren Buffett prefers to spend money on shareholder-friendly companies with lengthy monitor information of success.

The next shares characterize Warren Buffett’s largest 20 inventory positions.

Notice: You may see Buffett’s high dividend shares analyzed in video format as nicely under.

#1: Apple, Inc. (AAPL)

Dividend Yield: 0.5%
P.c of Warren Buffett’s Portfolio: 47.6%

As of its fourth-quarter 13F submitting, Berkshire held simply over 887 million shares of Apple, price greater than $157 billion. Apple is Berkshire’s largest place by far, due largely to Apple’s wonderful rally over the previous few years.

Apple revolutionized private expertise with the introduction of the Macintosh in 1984. At present the expertise firm designs, manufactures and sells merchandise corresponding to iPhones, iPads, Mac, Apple Watch and Apple TV.

Apple additionally has a providers enterprise that sells music, apps, and subscriptions.

Click on right here to obtain our most up-to-date Certain Evaluation report on Apple (preview of web page 1 of three proven under):

#2: Financial institution of America Company (BAC)

Dividend Yield: 1.9%
P.c of Warren Buffett’s Portfolio: 13.6%

Berkshire Hathaway owns simply over 1 billion shares of Financial institution of America inventory, price almost $45 billion as of the newest 13F submitting.

Financial institution of America, headquartered in Charlotte, NC, offers conventional banking providers, in addition to non–banking monetary providers to clients throughout the world. Its operations embrace Shopper Banking, Wealth & Funding Administration and International Banking & Markets.

Financial institution of America was based in 1904, and will produce about $89 billion in income this year. Financial institution of America is one of many largest monetary shares on the earth.

Click on right here to obtain our most up-to-date Certain Evaluation report on Financial institution of America (preview of web page 1 of three proven under):

#3: American Specific Firm (AXP)

Dividend Yield: 0.9%
P.c of Warren Buffett’s Portfolio: 7.5%

American Specific is one among Berkshire’s longest-held shares. American Specific is a bank card firm that operates the next enterprise items: US Card Providers, Worldwide Shopper and Community Providers, International Industrial Providers, and International Service provider Providers. American Specific was based in 1850.

American Specific reported its fourth quarter earnings outcomes on January 25. The corporate generated revenues of $12.2 billion throughout the quarter, which was 30% extra than throughout the earlier 12 months’s quarter. The revenue improve was based mostly on a restoration for American Specific’ enterprise in comparison with the earlier 12 months’s quarter, the place the pandemic had a big destructive influence on card holder spending.

Click on right here to obtain our most up-to-date Certain Evaluation report on American Specific (preview of web page 1 of three proven under):

#4: The Coca-Cola Firm (KO)

Dividend Yield: 2.8%
P.c of Warren Buffett’s Portfolio: 7.2%

Coca–Cola is the world’s largest beverage firm, because it owns or licenses greater than 500 distinctive non–alcoholic manufacturers. For the reason that firm’s founding in 1886, it has unfold to greater than 200 international locations worldwide.

Coca-Cola reported fourth quarter and full-year earnings on February tenth, 2022, and outcomes had been nicely forward of estimates on each the highest and backside strains. Earnings-per-share on an adjusted foundation got here to 45 cents, 4 cents forward of expectations.

Income was $9.5 billion, up almost 11% year-over-year, and beating estimates by $570 million. The corporate reported natural revenues having a 9% acquire year-over-year, together with a ten% improve in pricing and blend, which was offset barely by a 1% decline in quantity.

Natural gross sales in EMEA shot up 17%, whereas North America noticed a really sturdy 14% acquire. Asia-Pacific noticed a 3% decline in natural gross sales. Hydration, sports activities, espresso, and tea grew 12% for the quarter, and diet, juice, dairy, and plant based mostly drinks had been up 11%. The core glowing mushy drinks phase was up 8%, so power was broad-based.

Click on right here to obtain our most up-to-date Certain Evaluation report on Coca-Cola (preview of web page 1 of three proven under):

#5: The Kraft-Heinz Firm (KHC)

Dividend Yield: 4.0%
P.c of Warren Buffett’s Portfolio: 3.5%

Kraft–Heinz is a processed meals and drinks firm which owns a product portfolio that contains meals merchandise corresponding to condiments, sauces, cheese & dairy, frozen & chilled meals, and toddler weight loss program & nutrition. The corporate was created in 2015 in a merger between Kraft Meals Group and H. J. Heinz Firm, orchestrated by Berkshire Hathaway and 3G Capital.

The Kraft–Heinz Firm reported its fourth quarter earnings outcomes on February 16. The corporate reported that its revenues totaled $6.7 billion throughout the quarter, which was down 3% in comparison with the revenues that Kraft–Heinz generated throughout the earlier 12 months’s interval. This was barely higher than what the analyst neighborhood had anticipated. Kraft–Heinz’ natural gross sales had been up by 4%, which was higher than the natural gross sales progress charge throughout the earlier quarter. Natural gross sales progress was doable thanks to cost will increase, whereas volumes had been flat.

Click on right here to obtain our most up-to-date Certain Evaluation report on Kraft-Heinz (preview of web page 1 of three proven under):

#6: Moody’s Company (MCO)

Dividend Yield: 0.9%
P.c of Warren Buffett’s Portfolio: 2.9%

Moody’s was created again in 1909, changing into the primary firm to investigate securities and charge their funding high quality for traders on a big scale. Moody’s started with its Analyses of Railroad Investments in 1909 and has blossomed into the corporate we all know in the present day, with over $6 billion in annual income.

Moody’s remains to be one of many largest gamers within the conventional scores enterprise however has remodeled itself in current years by investing closely in information and analytics, which is much less cyclical and has very sturdy margins.

Click on right here to obtain our most up-to-date Certain Evaluation report on Moody’s (preview of web page 1 of three proven under):

#7: Verizon Communications (VZ)

Dividend Yield: 4.7%
P.c of Warren Buffett’s Portfolio: 2.5%

Verizon Communications is likely one of the largest communications providers shares.

Wi-fi contributes three–quarters of all revenues, and broadband and cable providers account for a few quarter of gross sales. The corporate’s community covers ~300 million folks and 98% of the U.S. Verizon has now launched 5G Extremely–Wideband in a number of cities because it continues its rollout of 5G service.

Click on right here to obtain our most up-to-date Certain Evaluation report on Verizon (preview of web page 1 of three proven under):

#8: U.S. Bancorp (USB)

Dividend Yield: 3.2%
P.c of Warren Buffett’s Portfolio: 2.2%

U.S. Bancorp traces its lineage again to 1863 when the First Nationwide Financial institution of Cincinnati opened for enterprise. It has since grown to 70,000 staff, and about $25 billion in annual income.

The financial institution has expanded from a regional participant to a nationwide powerhouse lately, changing into the fifth–largest financial institution by belongings in the U.S. It competes principally in conventional banking actions, however additionally affords wealth administration, fee and funding providers.

Click on right here to obtain our most up-to-date Certain Evaluation report on U.S. Bancorp (preview of web page 1 of three proven under):

#9: Chevron Company (CVX)

Dividend Yield: 4.5%
P.c of Warren Buffett’s Portfolio: 1.0%

Chevron is the second-largest U.S. oil inventory behind solely Exxon Mobil (XOM). Chevron has elevated its dividend for over 40 consecutive years, making it a Dividend Aristocrat.

In late January, Chevron reported (1/28/22) monetary outcomes for the fourth quarter of fiscal 2021. The corporate reduce its production by 5% over the prior 12 months’s quarter however drastically benefited from the sturdy restoration of the vitality market from the pandemic and the deep manufacturing cuts of OPEC and Russia, which led the worth of oil to rally to a 7–12 months excessive.

The common realized worths of oil and gasoline of Chevron almost doubled over the prior 12 months’s quarter and thus the oil main grew its adjusted earnings–per–share from $0.16 to $2.56, a virtually 8–12 months excessive. Within the full 12 months, Chevron posted file free money move of $21.1 billion ($10.98 per share) and achieved a reserve alternative ratio of 112%.

Click on right here to obtain our most up-to-date Certain Evaluation report on Chevron (preview of web page 1 of three proven under):

#10: The Financial institution of New York Mellon Company (BK)

Dividend Yield: 2.5%
P.c of Warren Buffett’s Portfolio: 1.3%

Berkshire Hathaway’s widespread inventory portfolio incorporates simply over 72 million shares of the Financial institution of New York Mellon Company with a market worth of $3.7 billion.

The Financial institution of New York Mellon Company is a world monetary providers establishment that makes a speciality of asset administration, custodial providers, and wealth administration.

The corporate generates almost $17 billion in annual income. The financial institution is current in 35 international locations all over the world and acts as extra of an funding manager than a conventional financial institution.

Click on right here to obtain our most up-to-date Certain Evaluation report on Financial institution of New York Mellon (preview of web page 1 of three proven under):

#11: DaVita Inc. (DVA)

Dividend Yield: N/A (DaVita doesn’t at the moment pay a quarterly dividend)
P.c of Warren Buffett’s Portfolio: 1.2%

Berkshire’s funding portfolio incorporates simply over 36 million shares of DaVita, Inc., equating to a complete funding of $4 billion on the time of the final 13F submitting. DaVita is about 1.2% of Berkshire’s total funding portfolio.

DaVita offers kidney dialysis providers for sufferers affected by persistent kidney failure or finish stage renal illness. The corporate operates kidney dialysis facilities and offers associated lab providers in outpatient dialysis facilities.

#12: Basic Motors Firm (GM)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 1.1%

Berkshire Hathaway’s funding portfolio owns 60 million shares of GM, for a market worth of roughly $3.5 billion.

Basic Motors Firm designs, builds, and sells automobiles, vans, crossovers, and vehicle elements all over the world. Its high car manufacturers embrace Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.

#13: VeriSign, Inc. (VRSN)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 1.0%

Buffett’s Berkshire Hathaway funding portfolio holds 12.8 million shares of VeriSign, In.c with a market worth of $3.2 billion.

VeriSign is a globally diversified supplier of area identify registry providers and Web safety software program. The corporate operates in a single phase, and has a big worldwide presence.

#14: The Kroger Co. (KR)

Dividend Yield: 1.9%
P.c of Warren Buffett’s Portfolio: 0.8%

Based in 1883 and headquartered in Cincinnati, Ohio, Kroger is one of many largest retailers within the U.S. The corporate has almost 2,800 retail shops beneath two dozen banners, together with gasoline facilities, pharmacies and jewellery shops in 35 states. The firm serves almost 11 million clients a day.

On June 24th, 2021, Kroger elevated its quarterly dividend by 16.7% to $0.21. Shares yield almost 2%.

Click on right here to obtain our most up-to-date Certain Evaluation report on Kroger (preview of web page 1 of three proven under):

#15: Constitution Communications, Inc. (CHTR)

Dividend Yield: N/A (Constitution Communications doesn’t at the moment pay a dividend)
P.c of Warren Buffett’s Portfolio: 0.8%

Warren Buffett’s funding portfolio incorporates 3.8 million shares of Constitution Communications with a market worth of almost $2.8 billion.

Constitution Communications, Inc. operates as a broadband connectivity and cable firm serving residential and business clients in america.

#16: The Liberty Sirius XM Group (LSXMK)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.7%

On the finish of the fourth quarter, Berkshire held simply over 20 million shares of Liberty SiriusXM.

The Liberty SiriusXM Group, by means of its subsidiaries, engages in leisure companies. It options music, sports activities, leisure, comedy, discuss, information, visitors, and climate channels by means of radio and cellular purposes.

#17: Snowflake Inc. (SNOW)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.6%

Berkshire owns simply over 6.1 million shares of Snowflake. The stake is price roughly $2.07 billion.

Snowflake offers a cloud-based information platform in america and internationally. It affords Knowledge Cloud, an ecosystem that allows clients to consolidate information right into a single supply.

#18: Visa Inc. (V)

Dividend Yield: 0.7%
P.c of Warren Buffett’s Portfolio: 0.5%

Warren Buffett’s funding portfolio holds almost 8.3 million shares of Visa with a quarter-end market worth of $1.8 billion.

Visa is the world’s chief in digital funds, with exercise in additional than 200 international locations. The corporate’s international processing community offers safe and reliable funds all over the world and is able to dealing with greater than 65,000 transactions a second. In fiscal 12 months 2021 the corporate generated almost $13 billion in revenue.

On October 22nd, 2021, Visa declared a $0.375 quarterly dividend, a 17.2% dividend improve.

Click on right here to obtain our most up-to-date Certain Evaluation report on Visa (preview of web page 1 of three proven under):

#19: Amazon.com, Inc. (AMZN)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.5%

As of This fall 2021, Berkshire owned greater than 533,000 shares of Amazon, price roughly $1.78 billion on the finish of the quarter.

Amazon is an internet retailer that operates an enormous e-commerce platform the place customers should purchase just about something with their computer systems or smartphones.

It operates by means of the next segments:

• North America
• Worldwide
• Amazon Internet Providers

The North America and Worldwide segments embrace the worldwide retail platform of shopper merchandise by means of the corporate’s web sites. The Amazon Internet Providers phase sells subscriptions for cloud computing and storage providers to customers, start-ups, enterprises, authorities businesses, and tutorial establishments.

#20: Mastercard Integrated (MA)

Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.4%

MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments across the world to supply an digital fee community. MasterCard has almost 3 billion credit score and debit playing cards in use.

MasterCard introduced fourth quarter and full 12 months earnings outcomes on 1/27/2022. For the quarter, revenue grew 26.2% to $5.2 billion, which was $30 million greater than anticipated. Adjusted earnings–per–share of $2.35 compared favorably to adjusted earnings–per–share of $1.64 within the prior 12 months and was $0.14 forward estimates.

For the 12 months, income improved 23% to $18.9 billion whereas adjusted earnings–per–share of $8.76 was a 38% improve from 2020

Click on right here to obtain our most up-to-date Certain Evaluation report on MasterCard (preview of web page 1 of three proven under):

Ultimate Ideas

Warren Buffett shares characterize lots of the strongest, most long-lived companies round. You may see extra high-quality dividend shares within the following Certain Dividend databases:

Alternatively, one other excellent place to search for high-quality enterprise is contained in the portfolios of different extremely profitable traders.

To that finish, Certain Dividend has created the next inventory databases:

You may additionally be trying to create a extremely custom-made dividend revenue stream to pay for all times’s bills.

The next two lists present helpful data on excessive dividend shares and shares that pay month-to-month dividends:

Lastly, you possibly can see the articles under for evaluation on different main funding companies/asset managers: