Tuesday, January 3, 2012

Warren Watch: 4 Dividend Stocks Buffett Loves

Enjoy that wimpy interest rate from your bank account? Of course not, and billionaire Warren Buffett doesn't care for those paltry rates, either.Motley Fool writes: “ I've dug through Berkshire Hathaway's portfolio and found some high-quality companies paying dividends that make your checking account look weak. Some of these stocks are hand-picked current or former picks by the Oracle himself, while Intel is the handiwork of Buffett heir apparent Todd Combs.

“In any case, they're all great companies with defensible moats trading at attractive prices and spinning off dividends. Let's look at a few.

The contenders and their yields

Coca-Cola (NYSE: KO) � 2.8%
General Electric (NYSE: GE) � 4%
Intel 3.6%
Johnson & Johnson (NYSE: JNJ) 3.6%

Source: AOL Daily Finance.

“Each of these contenders has a nice dividend yield above the average yield of the S&P 500, 2.57%. Let's now look at each of these companies' dividend histories, payout ratios, free cash flow-to-payout ratio, and their ability to grow through capital appreciation….”

Wait, wait...there's more at http://www.msnbc.msn.com/id/45841806/ns/business-motley_fool/#.TwLHFdT2bhc

No comments:

Post a Comment