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Should 5 Top Buffett Stocks Be In Your Portfolio Too?

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W arren Buffett is called the Oracle of Omaha for a reason -- so it's always interesting to take a close look at his holdings. Many of the stocks he owns pay a dividend, and some make IBD's Dividend Leaders screen as well. Here are fiveBerkshire Hathaway (BRKA) holdings that make the cut. All pay yields above the S&P 500's 2.08% average.

AT&T ( T ), with a 5.5% annualized yield, topped IBD's Dividend Leaders in Wednesday's issue. The telecom services giant made up 1.5% of Buffett's portfolio in Q3. He acquired shares when DirecTV was bought by AT&T in July. AT&T has retaken its 10-week and 40-week moving average lines as it shapes a potential new base.

Verizon Communications ( VZ ), a smaller position at 0.5%, offers a 5% annual yield. Shares have been moving sideways-to-lower much of the year. They're slightly underwater for the year and about 8% off a 52-week high.

Procter & Gamble ( PG ), which pays a 3.3% dividend, accounted for nearly 3% of Buffett's Q3 holdings. The consumer products maker, like AT&T, is an S&P 500 Dividend Aristocrat, companies that have raised their dividends every year for 25 consecutive years. The stock has been consolidating for most of the year.

Fellow Dividend AristocratCoca-Cola ( KO ) offers a 3.1% annualized yield. The beverage giant, at 12.6%, was one of Berkshire Hathaway's top-five holdings. The stock, up about 4% year to date, is slightly ahead of the overall market. Coca-Cola's three-year Earnings Stability Factor is the best of the five stocks: 1 on a scale from 0 (most stable) to 99 (least stable).

Wells Fargo ( WFC ), was Buffett's biggest Q3 holding , at 19%. The top-five holdings made up more than two-thirds of his portfolio. The San Francisco-based bank pays a 2.7% annual dividend. Shares have been consolidating since July and recently retook the 10-week and 40-week lines. They're up 2% this year.

Wells and Coke make IBD's screen but aren't in the issue due to space constraints.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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