Stock Quotes in this Article: BRK.A, BRK.B, GM, GS, IBM, KO, MCO, PG, USB, WFC, WMT, XOM

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 (BRK.B) and one of the richest people in the world.

Today we're taking 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 June 30, 2014. These stocks each comprise at least 1% of Berkshire's portfolio, with current dividend yields of 1.3% and higher. They are listed by size of dividend yield.

10. Moody's

Moody's (MCO) has a current yield of 1.3%, paying a quarterly dividend of 28 cents a share.

Moody's is Buffett's 11th-largest holding, comprising 2% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett maintained his 24.7 million-share position in the stock.

TheStreet Ratings team rates Moody's a buy with a Ratings score of A-. TheStreet Ratings team has this to say about its recommendation:


"We rate Moody's (MCO) 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, notable return on equity, reasonable valuation levels, expanding profit margins and good cash flow from operations. 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:

  • MCO's revenue growth has slightly outpaced the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 15.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 48.00% and other important driving factors, this stock has surged by 40.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MCO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Moody's has improved earnings per share by 48.0% 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, Moody's increased its bottom line by earning $3.60 versus $3.03 in the prior year. This year, the market expects an improvement in earnings ($4.01 versus $3.60).
  • 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 Diversified Financial Services industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from $225.50 million to $319.20 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, Moody's return on equity significantly exceeds that of both the industry average and the S&P 500.

9. Goldman Sachs

Goldman Sachs (GS) 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 10th-largest holding, comprising 2% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett maintained his 12.6 million-share position in the stock.

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 several positive factors, 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 2.7%. 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.
  • 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 versus $14.15 in the prior year. This year, the market expects an improvement in earnings ($16.80 versus $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 to 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.

8. U.S. Bancorp

U.S. Bancorp (USB) has a current yield of 2.2%, paying a quarterly dividend of 24.5 cents a share.

U.S. Bancorp is Buffett's eighth-largest holding, comprising 3.2% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett increased his position slightly in the stock to 80.1 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, expanding profit margins, increase in stock price during the past year, increase in net income and growth in earnings per share. 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 revenue growth came in higher than the industry average of 11.9%. 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 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. Along with this, the net profit margin of 27.22% significantly outperformed against the industry average.
  • 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).

7. IBM

International Business Machines (IBM) has a current yield of 2.4%, paying a quarterly dividend of $1.10 a share.

IBM is Buffett's fourth-largest holding, comprising 11.8% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett increased his position in the stock by 2.7% to 70.2 million total shares.

TheStreet Ratings team rates International Business Machines 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's 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 -2.76%.
  • The gross profit margin for International Business Machines is rather high; currently it is at 54.45%. 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.

6. Wal-Mart

Wal-Mart (WMT) has a current yield of 2.5%, paying a quarterly dividend of 48 cents a share.

Wal-Mart is Buffett's fifth-largest holding, comprising 4.1% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett increased his position in the stock by 1.3% to 58.8 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 (WMT) a buy. This is driven by some important positives, 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, increase in net income, 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 2.8%. 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.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food & Staples Retailing industry average. The net income increased by 0.6% when compared to the same quarter one year prior, going from $4,069.00 million to $4,093.00 million.
  • Wal-Mart'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, Wal-Mart reported lower earnings of $4.86 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($5.13 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's return on equity exceeds that of both the industry average and the S&P 500.

5. Exxon Mobil

Exxon Mobil (XOM) has a current yield of 2.7%, paying a quarterly dividend of 69 cents a share.

Exxon Mobil is Buffett's seventh-largest holding, comprising 3.8% of the Berkshire Hathaway portfolio as of June 30. 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 revenue growth, increase in stock price during the past year, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings team are as follows:

  • XOM's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 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 Oil, Gas & Consumable Fuels industry average. The net income increased by 28.0% when compared to the same quarter one year prior, rising from $6,860.00 million to $8,780.00 million.
  • Net operating cash flow has increased to $10,202.00 million or 32.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.58%.

4. Wells Fargo

Wells Fargo (WFC) has a current yield of 2.6%, paying a quarterly dividend of 35 cents a share.

Wells Fargo is Buffett's largest holding, comprising 22.6% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett maintained a 463.5 million-share position in the stock.

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 solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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 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.
  • 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. Along with this, the net profit margin of 25.94% significantly outperformed against the industry average.
  • 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).
  • Despite the weak revenue results, WFC has outperformed against the industry average of 11.9%. 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.

3. Coca-Cola

Coca-Cola (KO) has a current yield of 2.9%, paying a quarterly dividend of 30.5 cents a share.

Coca-Cola is Buffett's second-largest holding, comprising 15.8% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett maintained a 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, reasonable valuation levels 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 4.4%. 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 change in net income from the same quarter one year ago has significantly exceeded that of the Beverages industry average, but is less than that of the S&P 500. The net income has decreased by 3.0% when compared to the same quarter one year ago, dropping from $2,676.00 million to $2,595.00 million.

2. Procter & Gamble

Procter & Gamble (PG) has a current yield of 3.2%, paying a quarterly dividend of 64.25 cents a share.

Procter & Gamble is Buffett's sixth-largest holding, comprising 3.9% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett maintained a 52.8 million-share position in the stock.

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 growth in earnings per share, increase in net income, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings team are as follows:

  • Procter & Gamble has improved earnings per share by 39.1% 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, Procter & Gamble increased its bottom line by earning $3.99 versus $3.87 in the prior year. This year, the market expects an improvement in earnings ($4.45 versus $3.99).
  • 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 Household Products industry average. The net income increased by 37.5% when compared to the same quarter one year prior, rising from $1,875.00 million to $2,579.00 million.
  • The gross profit margin for Procter & Gamble is rather high; currently it is at 51.99%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.79% is above that of the industry average.
  • Net operating cash flow has slightly increased to $4,506.00 million or 2.59% when compared to the same quarter last year. In addition, Procter & Gamble has also modestly surpassed the industry average cash flow growth rate of -1.00%.
  • The current debt-to-equity ratio, 0.51, 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 0.51, displays a potential problem in covering short-term cash needs.

1. General Motors

General Motors (GM) has a current yield of 3.3%, paying a quarterly dividend of 30 cents a share.

General Motors is Buffett's 14-largest holding, comprising 1.1% of the Berkshire Hathaway portfolio as of June 30. In the most recently reported quarter, Buffett increased his position in the stock by 9.9% to 32.96 million total shares.

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 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 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 23.0%. Since the same quarter one year prior, revenues 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 ($2.71 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.

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