Up to date on August 18th, 2022 by Bob Ciura
To put money into nice companies, it’s a must to discover them first. That’s the place Warren Buffett is available in…
Berkshire Hathaway (BRK.B) has an fairness funding portfolio value greater than $300 billion, as of the top of the 2022 second quarter.
Berkshire Hathaway’s portfolio is full of 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:
Notes: 13F submitting efficiency is completely different than fund efficiency. See how we calculate 13F submitting efficiency right here. The spreadsheet above is lacking the next Berkshire tickers: FWONK, LILA. We’ll add them in quickly.
This text analyzes Warren Buffett’s high 20 shares based mostly on info disclosed in his Q2 2022 13F submitting.
You too can see detailed evaluation on all Warren Buffett shares additional under on this article, in our Warren Buffett Shares collection. Evaluation consists of valuation, progress, and aggressive benefits.
Desk of Contents
You may skip to a particular part with the desk of contents under. Shares are listed by proportion of the overall 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 might have the power to filter it based mostly on essential investing metrics.
That’s why this text’s Excel obtain is so helpful…
It lets you 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 learn how 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 robust aggressive benefits buying and selling at honest or higher costs.
Most traders know Warren Buffett appears 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 median dividend yield of two.2% (and make up 77% of his portfolio)
- A lot of his dividend shares have paid rising dividends over many years
Warren Buffett prefers to put money into shareholder-friendly companies with lengthy monitor information of success.
The Warren Buffett Shares Collection
You may see evaluation on each single Warren Buffett inventory under. Every is sorted by GICS sectors and listed in alphabetical order by title. The latest Certain Evaluation Analysis Database report for every safety is included as nicely.
Client Staples
Communication Companies
Industrials
Well being Care
Client Discretionary
Financials
Supplies
Power
Info Expertise
Actual Property
Preserve studying this text to see Warren Buffett’s 20 highest conviction inventory picks analyzed. These are the 20 shares with the best worth (most weight) in Berkshire Hathaway’s portfolio.
#1: Apple, Inc. (AAPL)
Dividend Yield: 0.5%
P.c of Warren Buffett’s Portfolio: 39.8%
As of its fourth-quarter 13F submitting, Berkshire held simply over 894 million shares of Apple, value greater than $122 billion. Apple is Berkshire’s largest place by far, due largely to Apple’s wonderful rally over the previous few years.
Apple revolutionized private know-how with the introduction of the Macintosh in 1984. At this time the know-how firm designs, manufactures and sells merchandise corresponding to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a companies enterprise that sells music, apps, and subscriptions.
Apple revolutionized private know-how with the introduction of the Macintosh in 1984. At this time the know-how firm designs, manufactures and sells merchandise corresponding to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a companies enterprise that sells music, apps, and subscriptions.
On April twenty eighth, 2022, Apple declared a $0.23 quarterly dividend, marking a 4.5% year-over-year improve. On July twenty eighth, 2022, Apple reported Q3 fiscal yr 2022 outcomes for the interval ending June twenty fifth, 2022. (Apple’s fiscal yr ends the final Saturday in September).
For the quarter, Apple generated income of $82.959 billion, a 1.9% improve in comparison with Q3 2021. Product gross sales had been down -0.9%, as a 2.8% improve in iPhones (49% of complete gross sales), was greater than offset by declines in Mac, iPad, and Wearables, House and Equipment. Service gross sales elevated 12.1% to $19.6 billion and made up 23.6% of all gross sales within the quarter. Web revenue equaled $19.4 billion or $1.20 per share in comparison with $21.7 billion or $1.30 per share in Q3 2021.
Click on right here to obtain our most up-to-date Certain Evaluation report on AAPL (preview of web page 1 of three proven under):
#2: Financial institution of America Company (BAC)
Dividend Yield: 2.3%
P.c of Warren Buffett’s Portfolio: 10.2%
Berkshire Hathaway owns simply over 1 billion shares of Financial institution of America inventory, value $31 billion as of the newest 13F submitting.
Financial institution of America, headquartered in Charlotte, NC, supplies conventional banking companies, in addition to non–banking monetary companies to prospects throughout the world. Its operations embody Client Banking, Wealth & Funding Administration and World 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 this planet.
Financial institution of America reported second quarter earnings on July 18th, 2022. Income was up nearly 6% year-over-year at $22.7 billion, however missed estimates by $90 million. Web curiosity revenue was up $2.2 billion, or 22%, to $12.4 billion.
Supply: Investor Presentation
The achieve was pushed by increased rates of interest, decrease premium amortization, and mortgage progress. Non-interest revenue fell by nearly a billion {dollars}, or 9%, to $10.2 billion. This mirrored weaker capital markets, primarily.
Provisions for credit score losses had been $523 million, whereas internet charge-offs got here to $571 million. Common loans and leases had been $107 billion increased, or 12%, to $1.0 trillion. Business mortgage progress and better shopper balances helped drive the achieve, and helped offset declines from the Paycheck Safety Program. Common deposits had been up $123 billion, or 7%, to $2.0 trillion.
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: The Coca-Cola Firm (KO)
Dividend Yield: 2.6%
P.c of Warren Buffett’s Portfolio: 8.2%
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.
Supply: Investor Presentation
The corporate additionally has an distinctive 59-year dividend improve streak.
Coca-Cola reported second quarter earnings on July twenty sixth 2022, and outcomes had been higher than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to 70 cents, which was three cents forward of expectations. Income was up nearly 12% year-over-year, rising to $11.3 billion, and beating estimates by $730 million. Natural income was up 16%, together with 12% progress in worth and blend, in addition to 4% progress in focus gross sales.
Working margin was 30.7% of income on an adjusted foundation, down 100bps from the second quarter of final yr. Margin compression was as a consequence of robust topline progress that was greater than offset by the impression of the BODYARMOR buy, increased working prices, and a rise in advertising investments.
Earnings-per-share got here to 70 cents on an adjusted foundation, up 4% year-over-year. Free money stream was $4.1 billion, down $1.0 billion year-over-year. The corporate additionally up to date steerage to natural income progress of 12% to 13%, and adjusted EPS progress of 5% to six%.
Click on right here to obtain our most up-to-date Certain Evaluation report on KO (preview of web page 1 of three proven under):
#4: Chevron Company (CVX)
Dividend Yield: 3.5%
P.c of Warren Buffett’s Portfolio: 7.6%
Chevron is the third–largest oil main on this planet. In 2021, Chevron generated 84% of its earnings from its upstream phase.
The corporate has elevated its dividend for over 40 consecutive years.
Supply: Investor Presentation
Within the 2022 second quarter, Chevron generated income of $68.8 billion which elevated 83% year-over-year, and beat estimates by $11.1 billion. Adjusted earnings-per-share of $5.82 additionally beat, by $0.79. The corporate was fueled largely by increased commodity costs. Money stream from operations got here to $13.8 billion for the second quarter.
Click on right here to obtain our most up-to-date Certain Evaluation report on CVX (preview of web page 1 of three proven under):
#5: American Specific Firm (AXP)
Dividend Yield: 0.9%
P.c of Warren Buffett’s Portfolio: 7.5%
American Specific is certainly one of Berkshire’s longest-held shares. American Specific is a bank card firm that operates the next enterprise items: US Card Companies, Worldwide Client and Community Companies, World Business Companies, and World Service provider Companies. American Specific was based in 1850.
American Specific reported its second quarter earnings outcomes on July 22. The corporate generated revenues of $13.4 billion in the course of the quarter, which was 31% greater than in the course of the earlier yr’s quarter. The income improve was based mostly on a restoration for American Specific’ enterprise in comparison with the earlier yr’s quarter, the place the pandemic had a big unfavourable impression on card holder spending.
Earnings-per-share of $2.57 declined 8% yr over yr. American Specific’ earnings-per-share beat the analyst consensus simply, as analysts had forecast internet earnings of simply $2.40 per share. American Specific forecasts that earnings will proceed to rise within the present yr on an adjusted foundation.
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):
#6: Occidental Petroleum (OXY)
Dividend Yield: 0.4%
P.c of Warren Buffett’s Portfolio: 5.3%
Occidental Petroleum is a global oil and fuel exploration and manufacturing firm with operations within the U.S., the Center East, and Latin America. It has a market capitalization of $60 billion. Whereas the corporate additionally has a midstream and a chemical phase, it’s way more delicate to the worth of oil than the built-in oil majors.
On August eighth, 2019, Occidental acquired Anadarko. Occidental pursued this acquisition because of the promising asset base of Anadarko within the Permian, which has enhanced the already robust presence of Occidental within the space, and the $3.5 billion annual synergies it expects to attain.
In early Might, Occidental reported (5/10/22) monetary outcomes for the primary quarter of fiscal 2022. Its common realized worth of oil grew 22% sequentially whereas the chemical phase posted file earnings for a 3rd consecutive quarter because of large margins amid robust pent-up demand. In consequence, Occidental grew its adjusted earnings-per-share 43%, from $1.48 to $2.12.
Click on right here to obtain our most up-to-date Certain Evaluation report on OXY (preview of web page 1 of three proven under):
#7: The Kraft-Heinz Firm (KHC)
Dividend Yield: 4.2%
P.c of Warren Buffett’s Portfolio: 4.0%
Kraft–Heinz is a processed meals and drinks firm which owns a product portfolio that consists of meals merchandise corresponding to condiments, sauces, cheese & dairy, frozen & chilled meals, and toddler food regimen & 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 second quarter earnings outcomes on July 27. The corporate reported that its revenues totaled $6.6 billion in the course of the quarter, which was down 1% year-over-year. Natural gross sales had been up by 10% as a consequence of worth will increase, whereas volumes had been down barely.
Earnings-per-share of $0.70 had been down 10% versus the earlier yr’s quarter, being impacted by a tough comparability and opposed forex price actions. Administration expects natural internet gross sales to develop at a high-single digits tempo in 2022.
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):
#8: Moody’s Company (MCO)
Dividend Yield: 0.8%
P.c of Warren Buffett’s Portfolio: 2.2%
Moody’s was created again in 1909, changing into the primary firm to investigate securities and price 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 knowledge and analytics, which is much less cyclical and has very robust 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):
#9: U.S. Bancorp (USB)
Dividend Yield: 3.8%
P.c of Warren Buffett’s Portfolio: 1.8%
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 workers, 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 largely in conventional banking actions, however additionally provides wealth administration, fee and funding companies.
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):
#10: Activision Blizzard (ATVI)
Dividend Yield: 0.6%
P.c of Warren Buffett’s Portfolio: 1.7%
Berkshire owns simply over 68 million shares of ATVI inventory. The stake is value roughly $5.32 billion.
Activision Blizzard is a online game producer. It operates by means of three segments: Activision, Blizzard, and King. It develops and distributes content material and companies on online game consoles, private computer systems, and cellular units.
Activision Blizzard is ready to be acquired by Microsoft (MSFT) in a virtually $70 billion deal.
#11: HP Inc. (HPQ)
Dividend Yield: 2.7%
P.c of Warren Buffett’s Portfolio: 1.1%
On the finish of the second quarter, Berkshire held simply over 104 million shares of HPQ, for a market worth of roughly $3.42 billion.
HP Inc. has centered its enterprise actions round two fundamental segments: its product portfolio of printers, and its vary of so-called private methods, which incorporates computer systems and cellular units.
HP reported its second quarter (fiscal 2022) outcomes on Might 31. The corporate reported income of $17 billion for the quarter, which simply beat the analyst consensus estimate, and which was up 4% from the earlier yr’s quarter. HP did profit from ongoing wholesome demand for tech tools from each customers and companies, though it ought to be famous that its progress price in the course of the interval was under what now we have seen in the course of the earlier quarter.
Non-GAAP earnings-per-share totaled $1.08 in the course of the second quarter, which beat the analyst consensus estimate simply. Earnings-per-share had been up by a beautiful 16% versus the prior yr’s quarter. The corporate at the moment forecasts earnings-per-share in a spread of $1.03 to $1.08 for the third quarter. HP additionally expects earnings-per-share will hit a brand new file degree this yr, with steerage of $4.24 to $4.38, which might characterize progress of round 14% versus the earlier yr on the midpoint.
Click on right here to obtain our most up-to-date Certain Evaluation report on HPQ (preview of web page 1 of three proven under):
#12: DaVita Inc. (DVA)
Dividend Yield: N/A (DaVita doesn’t at the moment pay a quarterly dividend)
P.c of Warren Buffett’s Portfolio: 1.0%
Berkshire’s funding portfolio comprises simply over 36 million shares of DaVita, Inc., equating to a complete funding of $3.0 billion on the time of the final 13F submitting. DaVita is about 1% of Berkshire’s total funding portfolio.
DaVita supplies kidney dialysis companies for sufferers affected by power kidney failure or finish stage renal illness. The corporate operates kidney dialysis facilities and supplies associated lab companies in outpatient dialysis facilities.
#13: The Financial institution of New York Mellon Company (BK)
Dividend Yield: 3.1%
P.c of Warren Buffett’s Portfolio: 1.0%
Berkshire Hathaway’s widespread inventory portfolio comprises simply over 72 million shares of the Financial institution of New York Mellon Company with a market worth simply above $3.0 billion.
The Financial institution of New York Mellon Company is a worldwide monetary companies establishment that makes a speciality of asset administration, custodial companies, and wealth administration.
The corporate generates almost $17 billion in annual income. The financial institution is current in 35 international locations around the globe 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):
#15: Citigroup Inc. (C)
Dividend Yield: 3.8%
P.c of Warren Buffett’s Portfolio: 0.8%
Citigroup is a worldwide juggernaut in bank cards, industrial banking, buying and selling, and quite a lot of different monetary actions. It has 1000’s of branches and produces about $75 billion in annual income.
Citigroup reported second quarter earnings on July fifteenth, 2022, and outcomes had been a lot better than anticipated on each the highest and backside strains. The financial institution reported earnings-per-share of $2.19, which was a staggering 52 cents higher than estimates. Income was additionally very robust, rising 12.4% year-over-year to $12.64 billion, greater than $1.3 billion higher than anticipated. The highest line benefited from progress in each internet curiosity revenue, and non-interest income.
Working bills had been $12.4 billion, down 6% quarter-over-quarter, however up 8% year-over-year. Value of credit score got here to $1.3 billion in Q2, a pointy deterioration of a good thing about $1.1 billion within the year-ago interval. The change was primarily as a consequence of a internet construct in allowances for credit score losses of $0.4 billion, in comparison with a launch of $2.4 billion a yr in the past. This was partially offset by decrease internet credit score losses.
Click on right here to obtain our most up-to-date Certain Evaluation report on Citigroup (preview of web page 1 of three proven under):
#15: The Kroger Co. (KR)
Dividend Yield: 1.8%
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 below two dozen banners, together with gasoline facilities, pharmacies and jewellery shops in 35 states. The firm serves almost 11 million prospects a day.
On June sixteenth, Kroger reported first quarter outcomes for the interval ending Might twenty first, 2022. For the quarter, Kroger reported $44.6 billion in gross sales, up 8% in comparison with 2021. Excluding gasoline, gross sales elevated 3.8% in comparison with the yr in the past interval. Adjusted earnings-per-share equaled $1.45 in comparison with $1.19 in 1Q21.
Kroger repurchased $665 million of shares in the course of the first quarter, and $301 million stays on their repurchase authorization. Kroger additionally raised fiscal 2022 steerage. The corporate expects similar gross sales progress with out gasoline to be within the vary of two.5% to three.5% and adjusted earnings-per-share of $3.85 to $3.95.
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):
#16: VeriSign, Inc. (VRSN)
Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.7%
Buffett’s Berkshire Hathaway funding portfolio holds 12.8 million shares of VeriSign, In.c with a market worth of $2.1 billion.
VeriSign is a globally diversified supplier of area title registry companies and Web safety software program. The corporate operates in a single phase, and has a major worldwide presence.
#17: Paramount World (PARA)
Dividend Yield: 3.7%
P.c of Warren Buffett’s Portfolio: 0.6%
ViacomCBS Inc., now referred to as Paramount World, is an American multinational media conglomerate based mostly in New York Metropolis. The company was fashioned through the re-merger of CBS Company and Viacom on December 4, 2019, the 2 created from the break up of the unique Viacom in 2005.
The corporate’s content material manufacturers embody CBS, Showtime Networks, Paramount Footage, Nickelodeon, MTV, Comedy Central, BET, and CBS All Entry. The corporate has six completely different income segments, the place Promoting, Affiliate, and Content material Licensing are essentially the most important income supply. Paramount generated greater than $28.5 billion in income for 2021.
Click on right here to obtain our most up-to-date Certain Evaluation report on PARA (preview of web page 1 of three proven under):
#18: 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: 0.6%
Warren Buffett’s funding portfolio comprises 3.8 million shares of Constitution Communications with a market worth of $1.8 billion.
Constitution Communications, Inc. operates as a broadband connectivity and cable firm serving residential and industrial prospects in the USA.
#19: Normal Motors Firm (GM)
Dividend Yield: N/A
P.c of Warren Buffett’s Portfolio: 0.5%
Berkshire Hathaway’s funding portfolio owns 52.8 million shares of GM, for a market worth of roughly $1.7 billion.
Normal Motors Firm designs, builds, and sells automobiles, vans, crossovers, and car elements around the globe. Its high car manufacturers embody Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.
#20: 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 $1.6 billion.
Visa is the world’s chief in digital funds, with exercise in additional than 200 international locations. The corporate’s international processing community supplies safe and reliable funds around the globe and is able to dealing with greater than 65,000 transactions a second. In fiscal yr 2021 the corporate generated almost $13 billion in revenue.
On July twenty sixth, 2022, Visa reported Q3 fiscal yr 2022 outcomes for the interval ending June thirtieth, 2022. (Visa’s fiscal yr ends September thirtieth.) For the quarter, Visa generated income of $7.3 billion, adjusted internet revenue of $4.2 billion and adjusted earnings-per-share of $1.98, marking will increase of 19%, 29% and 33%, respectively. These outcomes had been pushed by a 12% achieve in Funds Quantity, a 40% achieve in Cross-Border Quantity and a 16% achieve in Processed Transactions. Visa processed 49.3 billion transactions within the quarter.
Throughout the quarter, Visa returned $3.3 billion to shareholders through dividends and share repurchases. Visa repurchased 12.2 million shares of sophistication A standard inventory within the quarter, for $2.5 billion.
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):
Last Ideas
You may see the next extra articles relating to Warren Buffett:
Warren Buffett shares characterize most 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 great spot 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 personalized dividend revenue stream to pay for all times’s bills.
The next two lists present helpful info on excessive dividend shares and shares that pay month-to-month dividends:
You may see Buffett’s high dividend shares analyzed in video format as nicely under.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
