First Published on February 23rd, 2023 by Bob Ciura for SureDividend
To invest in great businesses, you have to find them first. That’s where Warren Buffett comes in…
Berkshire Hathaway (BRK.B) has an equity investment portfolio worth more than $300 billion, as of the end of the 2022 second quarter.
Berkshire Hathaway’s portfolio is filled with quality stocks. You can ‘cheat’ from Warren Buffett stocks to find picks for your portfolio. That’s because Buffett (and other institutional investors) are required to periodically show their holdings in a 13F Filing.
You can see all of Warren Buffett’s stock holdings (along with relevant financial metrics like dividend yields and price-to-earnings ratios) by clicking on the link below:
Notes: 13F filing performance is different than fund performance. See how we calculate 13F filing performance here.
This article analyzes Warren Buffett’s top 20 stocks based on information disclosed in his Q4 2022 13F filing.
You can also see detailed analysis on all Warren Buffett stocks further below in this article, in our Warren Buffett Stocks series. Analysis includes valuation, growth, and competitive advantages.
In this article
Table of Contents
You can skip to a specific section with the table of contents below. Stocks are listed by percentage of the total portfolio, from highest to lowest.
- How To Use Warren Buffett Stocks To Find Investment Ideas
- Warren Buffett & Dividend Stocks
- The Warren Buffett Stocks Series
- #1: Apple, Inc. (AAPL)
- #2: Bank of America Corporation (BAC)
- #3: Chevron Corporation (CVX)
- #4: American Express (AXP)
- #5: The Coca-Cola Company (KO)
- #6: Kraft-Heinz (KHC)
- #7: Occidental Petroleum (OXY)
- #8: Moody’s Corporation (MCO)
- #9: Activision Blizzard (ATVI)
- #10: HP Inc. (HPQ)
- #11: Davita Inc. (DVA)
- #12: Citigroup Inc. (C)
- #13: VeriSign, Inc. (VRSN)
- #14: Kroger Co. (KR)
- #15: General Motors (GM)
- #16: Paramount Global (PARA)
- #17: Visa Inc. (V)
- #18: Charter Communications (CHTR)
- #19: Mastercard Incorporated (MA)
- #20: Aon plc (AON)
How To Use Warren Buffett Stocks To Find Investment Ideas
Having a database of Warren Buffett stocks is more powerful when you have the ability to filter it based on important investing metrics.
That’s why this article’s Excel download is so useful…
It allows you to search Warren Buffett stocks to find dividend investment ideas that match your specific portfolio.
For those of you unfamiliar with Excel, this section will show you how to filter Warren Buffett stocks for two important investing metrics – price-to-earnings ratio and dividend yield.
Step 1: Click on the filter icon in the column for dividend yield or price-to-earnings ratio.
Step 2: Filter each metric to find high-quality stocks. Two examples are provided below.
Example 1: To find stocks with dividend yields above 1% and list them in descending order, click the ‘Dividend Yield’ filter and do the following:
Example 2: To find stocks with price-to-earnings ratios below 25 and list them in descending order, click the ‘Price-to-Earnings Ratio’ filter and do the following:
Warren Buffett & Dividend Stocks
Buffett has grown his wealth by investing in and acquiring businesses with strong competitive advantages trading at fair or better prices.
Most investors know Warren Buffett looks for quality, but few know the degree to which he invests in dividend stocks:
- Over half of Warren Buffett’s top 10 stocks pay dividends
- His top 5 holdings have an average dividend yield of 2.2% (and make up 77% of his portfolio)
- Many of his dividend stocks have paid rising dividends over decades
Warren Buffett prefers to invest in shareholder-friendly businesses with long track records of success.
The Warren Buffett Stocks Series
You can see analysis on every single Warren Buffett stock below. Each is sorted by GICS sectors and listed in alphabetical order by name. The newest Sure Analysis Research Database report for each security is included as well.
Consumer Staples
- The Coca-Cola Company (KO) | [See newest Sure Analysis report]
- The Kraft-Heinz Company (KHC) | [See newest Sure Analysis report]
- The Kroger Co. (KR) | [See newest Sure Analysis report]
- Mondelez International (MDLZ) | [See newest Sure Analysis report]
- Procter & Gamble (PG) [See newest Sure Analysis report]
Communication Services
- Activision Blizzard (ATVI) | No Sure Analysis report for this security
- Charter Communications (CHTR) | No Sure Analysis report for this security
- Formula One Group (FWONK) | No Sure Analysis report for this security
- The Liberty SiriusXM Group (LSXMA) | No Sure Analysis report for this security
- Liberty Latin America Ltd. (LILA) (LILAK) | No Sure Analysis report for this security
- Paramount Global (PARA) | [See newest Sure Analysis report]
- T-Mobile US (TMUS) | No Sure Analysis report for this security
- Verizon Communications (VZ) | [See newest Sure Analysis report]
Industrials
Health Care
- Davita Inc. (DVA) | [See newest Sure Analysis report]
- Johnson & Johnson (JNJ) | [See newest Sure Analysis report]
- McKesson Corporation (MCK) | [See newest Sure Analysis report]
- Royalty Pharma (RPRX) | [See newest Sure Analysis report]
Consumer Discretionary
- Floor & Decor Holdings (FND) | No Sure Analysis report for this security
- General Motors (GM) | No Sure Analysis report for this security
- RH (RH) | No Sure Analysis report for this security
Financials
- Ally Financial (ALLY) | [See newest Sure Analysis report]
- American Express (AXP) | [See newest Sure Analysis report]
- Aon plc (AON) | [See newest Sure Analysis report]
- Bank of America (BAC) | [See newest Sure Analysis report]
- Bank of New York Mellon (BK) | [See newest Sure Analysis report]
- Citigroup (C) | [See newest Sure Analysis report]
- Globe Life (GL) | [See newest Sure Analysis report]
- Markel Corporation (MKL) | No Sure Analysis report for this security
- Marsh & McLennan Companies (MMC) | [See newest Sure Analysis report]
- Moody’s Corporation (MCO) | [See newest Sure Analysis report]
- Nu Holdings (NU) | No Sure Analysis report for this security
- U.S. Bancorp (USB) | [See newest Sure Analysis report]
Materials
- Celanese Corporation (CE) | [See newest Sure Analysis report]
- Louisiana-Pacific Corporation (LPX) | No Sure Analysis report for this security
Energy
- Chevron Corporation (CVX) | [See newest Sure Analysis report]
- Occidental Petroleum (OXY) | [See newest Sure Analysis report]
Information Technology
- Apple Inc. (AAPL) | [See newest Sure Analysis report]
- Amazon (AMZN) | No Sure Analysis report for this security
- HP Inc. (HPQ) | [See newest Sure Analysis report]
- Mastercard Incorporated (MA) | [See newest Sure Analysis report]
- Snowflake Inc. (SNOW) | No Sure Analysis report for this security
- StoneCo (STNE) | No Sure Analysis report for this security
- Taiwan Semiconductor (TSM) | [See newest Sure Analysis report]
- VeriSign Inc. (VRSN) | No Sure Analysis report for this security
- Visa (V) | [See newest Sure Analysis report]
Real Estate
Keep reading this article to see Warren Buffett’s 20 highest conviction stock selections analyzed. These are the 20 stocks with the highest value (most weight) in Berkshire Hathaway’s portfolio.
#1: Apple, Inc. (AAPL)
Dividend Yield: 0.6%
Percent of Warren Buffett’s Portfolio: 41.7%
As of its fourth-quarter 13F filing, Berkshire held just over 894 million shares of Apple, worth more than $122 billion. Apple is Berkshire’s largest position by far, due in large part to Apple’s amazing rally over the past few years.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today the technology company designs, manufactures and sells products such as iPhones, iPads, Mac, Apple Watch and Apple TV. Apple also has a services business that sells music, apps, and subscriptions.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today the technology company designs, manufactures and sells products such as iPhones, iPads, Mac, Apple Watch and Apple TV.Apple also has a services business that sells music, apps, and subscriptions.
Apple is the #1 holding of Berkshire Hathaway (BRK.B), making the technology giant one of the top Warren Buffett stocks.
On February 2nd, 2023, Apple reported Q1 fiscal year 2023 results for the period ending December 31st, 2022 (Apple’s fiscal year ends the last Saturday in September). For the quarter, Apple generated revenue of $117.154 billion, a -5.5% decline compared to Q1 2022.
Product sales were down -7.7%, driven by an -8.2% decline in iPhones (56% of total sales). Service sales increased 6.4% to $20.8 billion and made up 17.7% of all sales in the quarter. Net income equaled $29.998 billion or $1.88 per share compared to $34.630 billion or $2.10 per share in Q1 2022.
Click here to download our most recent Sure Analysis report on AAPL (preview of page 1 of 3 shown below):
#2: Bank of America Corporation (BAC)
Dividend Yield: 2.4%
Percent of Warren Buffett’s Portfolio: 10.9%
Berkshire Hathaway owns just over 1 billion shares of Bank of America stock, worth $31 billion as of the latest 13F filing.
Bank of America, headquartered in Charlotte, NC, provides traditional banking services, as well as non–banking financial services to customers all over the world. Its operations include Consumer Banking, Wealth & Investment Management and Global Banking & Markets.
Bank of America was founded in 1904, and should produce about $89 billion in revenue this year. Bank of America is one of the largest financial stocks in the world.
Bank of America posted fourth quarter and full-year earnings on January 13th, 2023, and results were better than expected on both the top and bottom lines. The bank reported 85 cents in earnings-per-share for the fourth quarter, which beat expectations by eight cents. Revenue was up more than 11% year-over-year to $24.53 billion, which also beat estimates by $360 million.
Net interest income was up $3.3 billion, or 29%, to $14.7 billion. This was driven by higher interest rates and solid loan growth. Net yield on earning assets was 2.22%, up from 1.67% a year ago on higher prevailing market rates. Noninterest income was down $799 million to $9.9 billion. The 8% decline was driven by reductions in fees from investment banking and asset management, as well as lower service charges. These more than offset gains from higher trading and sales revenue.
Provisions for credit losses were $1.1 billion, an increase of $1.6 billion from the net release seen in the year-ago period. Net charge-offs were $689 million.
Click here to download our most recent Sure Analysis report on Bank of America (preview of page 1 of 3 shown below):
#3: Chevron Corporation (CVX)
Dividend Yield: 3.5%
Percent of Warren Buffett’s Portfolio: 8.5%
Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non-alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide. Its brands account for about 2 billion servings of beverages worldwide every day, producing over $42 billion in annual revenue.
Source: Investor Presentation
Coca-Cola reported third quarter earnings on October 25th, 2022, and results were better than expected on both the top and bottom lines. Earnings-per-share on an adjusted basis came to 69 cents, which was a nickel better than expected. Revenue was up 11% year-over-year to $11.1 billion, which was also $600 million better than estimates. Further, the company guided for 14% to 15% in organic revenue growth this year.
Global unit case volume was up 4% in Q3. Organic sales were up 16%, which was almost double the expected 9.8% gain. The Europe, Middle East & Africa region saw a 20% organic sales gain, Latin America was up 18%, and North America was up 14%.
Click here to download our most recent Sure Analysis report on KO (preview of page 1 of 3 shown below):
#4: American Express Company (AXP)
Dividend Yield: 1.2%
Percent of Warren Buffett’s Portfolio: 8.3%
American Express is one of Berkshire’s longest-held stocks. American Express is a credit card company that operates the following business units: US Card Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services. American Express was founded in 1850.
American Express reported its fourth quarter earnings results on January 27. The company generated revenues of $14.2 billion during the quarter, which was 17% more than during the previous year’s quarter. The revenue increase was based on a recovery for American Express’ business compared to the previous year’s quarter, where the pandemic still had a negative impact on card holder spending. Revenues were up sequentially, but they missed estimates by $50 million.
American Express was able to generate earnings-per-share to $2.07 during the fourth quarter on a GAAP basis, which was down 5% year over year. American Express’ earnings-per-share missed the analyst consensus, as analysts had forecast net profits of just $2.33 per share.
American Express forecasts that revenues will continue to grow in the current year, currently forecasting full-year revenue growth of around 16%. 2022 was slightly weaker than 2021 due to not benefiting from a reserve release.
According to management’s guidance, 2023 will be a new record year, with earnings-per-share being forecast at $11.00 to $11.40.
Click here to download our most recent Sure Analysis report on American Express (preview of page 1 of 3 shown below):
#5: The Coca-Cola Company (KO)
Dividend Yield: 2.9%
Percent of Warren Buffett’s Portfolio: 7.2%
Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non–alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide.
Source: Investor Presentation
The company also has an exceptional 59-year dividend increase streak.
Coca-Cola reported third quarter earnings on October 25th, 2022, and results were better than expected on both the top and bottom lines. Earnings-per-share on an adjusted basis came to 69 cents, which was a nickel better than expected.
Revenue was up 11% year-over-year to $11.1 billion, which was also $600 million better than estimates. Further, the company guided for 14% to 15% in organic revenue growth this year.
Global unit case volume was up 4% in Q3. Organic sales were up 16%, which was almost double the expected 9.8% gain. The Europe, Middle East & Africa region saw a 20% organic sales gain, Latin America was up 18%, and North America was up 14%.
Click here to download our most recent Sure Analysis report on KO (preview of page 1 of 3 shown below):
#6: The Kraft-Heinz Company (KHC)
Dividend Yield: 3.9%
Percent of Warren Buffett’s Portfolio: 3.9%
Kraft–Heinz is a processed food and beverages company which owns aproduct portfolio that includes food products such as condiments, sauces, cheese & dairy, frozen & chilled meals, and infant diet & nutrition. The company was created in 2015 in a merger between Kraft Food Group and H. J. Heinz Company, orchestrated by Berkshire Hathaway and 3G Capital.
The Kraft-Heinz Company reported its third quarter earnings results on October 26. The company reported that its revenues totaled $6.5 billion during the quarter, which was up 3% compared to the revenues that Kraft-Heinz generated during the previous year’s period. This was slightly better than what the analyst community had expected. Kraft-Heinz’ organic sales were up by 12%. Organic sales growth was possible thanks to price increases.
Kraft-Heinz generated earnings-per-share of $0.63 during the third quarter, which easily beat the consensus estimate. Earnings-per-share were down 3% versus the previous year’s quarter, being impacted by a difficult comparison and adverse currency rate movements. Kraft-Heinz’ management stated that they see organic net sales rising at a high-single digits pace in 2022, while management is forecasting EBITDA to come in between $5.9 billion and $6.0 billion during the current year.
Click here to download our most recent Sure Analysis report on Kraft-Heinz (preview of page 1 of 3 shown below):
#7: Occidental Petroleum (OXY)
Dividend Yield: 0.6%
Percent of Warren Buffett’s Portfolio: 3.9%
Occidental Petroleum is an international oil and gas exploration and production company with operations in the U.S., the Middle East, and Latin America. It has a market capitalization of $60 billion. While the company also has a midstream and a chemical segment, it is much more sensitive to the price of oil than the integrated oil majors.
In early November, Occidental reported (11/8/22) financial results for the third quarter of fiscal 2022. Its average realized price of oil dipped 12% vs. blowout levels in the second quarter while the chemical segment saw its margins moderate. As a result, earnings-per-share decreased -23% sequentially, from $3.16 to $2.44. Due to its high debt load, Occidental is extremely sensitive to oil and gas prices and thus it is one of the greatest beneficiaries in its sector from the multi-year high prices of oil and gas, which have resulted from the sanctions of western countries on Russia.
Occidental has been reducing its debt pile at a fast pace thanks to its record free cash flows. This seems highly attractive to Warren Buffett. Berkshire Hathaway has acquired a 28% stake in Occidental and has requested approval to buy up to 50% of the company.
Click here to download our most recent Sure Analysis report on OXY (preview of page 1 of 3 shown below):
#8: Moody’s Corporation (MCO)
Dividend Yield: 0.9%
Percent of Warren Buffett’s Portfolio: 2.3%
Moody’s was created back in 1909, becoming the first company to analyze securities and rate their investment quality for investors on a large scale. Moody’s began with its Analyses of Railroad Investments in 1909 and has blossomed into the company we know today, with over $6 billion in annual revenue.
Moody’s reported fourth quarter earnings on January 31st, 2023, with results coming in better than expected on both the top and bottom lines. Adjusted earnings-per-share came to $1.60, which was 13 cents better than expected. The result was down sharply from $2.33 in the year-ago period. Revenue was down 16.2% year-over-year to $1.29 billion, but was fractionally ahead of estimates. Revenue was down from $1.54 billion, and foreign exchange translation adversely impacted revenue by 3%.
Moody’s Investors Services revenue was $576 million, down 34% year-over-year. Analytics revenue was up 7% to $714 million. Adjusted operating margin was 37.0% of revenue, down from 38.2% of revenue, which reflects negative operating leverage from lower revenue.
The company said 2023 free cash flow would be $1.4 billion to $1.6 billion, and that it is looking to buy back $250 million of its shares this year. The company guided for adjusted earnings-per-share of $9.00 to $9.50 for this year.
Click here to download our most recent Sure Analysis report on Moody’s (preview of page 1 of 3 shown below):
#9: Activision Blizzard (ATVI)
Dividend Yield: 0.6%
Percent of Warren Buffett’s Portfolio: 1.2%
Berkshire owns just over 68 million shares of ATVI stock. The stake is worth approximately $4.45 billion.
Activision Blizzard is a video game manufacturer. It operates through three segments: Activision, Blizzard, and King. It develops and distributes content and services on video game consoles, personal computers, and mobile devices.
Activision Blizzard is set to be acquired by Microsoft (MSFT) in a nearly $70 billion deal.
#10: HP Inc. (HPQ)
Dividend Yield: 3.3%
Percent of Warren Buffett’s Portfolio: 1.0%
At the end of the second quarter, Berkshire held just over 104 million shares of HPQ, for a market value of approximately $3.17 billion.
HP Inc. has centered its business activities around two main segments: its product portfolio of printers, and its range of so-called personal systems, which includes computers and mobile devices.
HP reported its fourth quarter (fiscal 2022) results in December. The company reported revenue of $14.8 billion for the quarter, which beat the analyst consensus estimate, and which was down 11% from the previous year’s quarter. Unlike during previous quarters, HP did not benefit from a demand recovery for tech equipment from consumers and corporations any longer, and an economic slowdown hurt consumer sentiment and thus spending.
Non-GAAP earnings-per-share totaled $0.85 during the fourth quarter, which beat the analyst consensus estimate. Earnings-per-share came in at the middle of management’s previous guidance range. The company currently forecasts earnings-per-share in a range of $0.70 to $0.80 for the first quarter, which would mean a further deceleration versus the results of the last couple of quarters.
Click here to download our most recent Sure Analysis report on HPQ (preview of page 1 of 3 shown below):
#11: DaVita Inc. (DVA)
Dividend Yield: N/A (DaVita does not currently pay a quarterly dividend)
Percent of Warren Buffett’s Portfolio: 0.9%
Berkshire’s investment portfolio contains just over 36 million shares of DaVita, Inc., equating to a total investment of $2.60 billion at the time of the last 13F filing. DaVita is less than 1% of Berkshire’s overall investment portfolio.
DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers.
#12: Citigroup Inc. (C)
Dividend Yield: 3.9%
Percent of Warren Buffett’s Portfolio: 0.9%
Citigroup is a global juggernaut in credit cards, commercial banking, trading, and a variety of other financial activities. It has thousands of branches and produces about $75 billion in annual revenue.
Citi reported fourth quarter and full-year earnings on January 13th, 2023, and results were somewhat mixed. Adjusted earnings-per-share came to $1.10, which was 10 cents light of estimates. Revenue was up almost 6% year-over-year to $18 billion, which fractionally beat estimates.
The company noted the excluding divestitures, revenue would have risen 5% as the impacts of higher interest rates and strong loan growth in the US were offset by declines in investment banking, and global wealth management.
Cost of credit was $1.8 billion, which was a sharp deterioration from the $0.5 billion credit in the year-ago period. This reflected a net build in the allowance for credit losses for loans and unfunded commitments, as well as deterioration of macroeconomic assumptions.
Book value ended the quarter at $94.06 per share, while tangible book value was $81.65. These were up 2% and 3%, respectively, year-over-year. They were driven by net income, lower shares outstanding, and payment of common stock dividends.
Click here to download our most recent Sure Analysis report on Citigroup (preview of page 1 of 3 shown below):
#13: VeriSign, Inc. (VRSN)
Dividend Yield: N/A
Percent of Warren Buffett’s Portfolio: 0.8%
Buffett’s Berkshire Hathaway investment portfolio holds 12.8 million shares of VeriSign, Inc with a market value of $2.7 billion.
VeriSign is a globally diversified provider of domain name registry services and Internet security software. The company operates in a single segment, and has a significant international presence.
#14: The Kroger Co. (KR)
Dividend Yield: 2.2%
Percent of Warren Buffett’s Portfolio: 0.7%
Founded in 1883 and headquartered in Cincinnati, Ohio, Kroger is one of the largest retailers in the U.S. The company has nearly 2,800 retail stores undertwo dozen banners, along with fuel centers, pharmacies and jewelry stores in 35 states. The company serves nearly 11 million customers a day.
On December 1st, Kroger reported third quarter results for the period ending November 5th, 2022. (Kroger’s fiscal year ends the Saturday closest January 31st.) For the quarter, Kroger reported $34.2 billion in sales, up 7.3% compared to 2021. Excluding fuel, sales increased 6.4% compared to the year ago period.
Adjusted earnings-per-share equaled $0.88 compared to $0.78 in 3Q21. Kroger’s share repurchase program was put on pause, as the company prioritizes de-leveraging in large part due to the proposed merger with Albertsons.
Kroger also raised fiscal 2022 guidance. The company expects identical sales growth without fuel to be in the range of 5.1% to 5.3% (up from 4.0% to 4.5%) and adjusted earnings-per-share of $4.05 to $4.15 (up from $3.95 to $4.05).
Click here to download our most recent Sure Analysis report on Kroger (preview of page 1 of 3 shown below):
#15: General Motors Company (GM)
Dividend Yield: 0.4%
Percent of Warren Buffett’s Portfolio: 0.6%
Berkshire Hathaway’s investment portfolio owns 50 million shares of GM, for a market value of just under $2 billion.
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts around the world. Its top vehicle brands include Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling.
#16: Paramount Global (PARA)
Dividend Yield: 4.0%
Percent of Warren Buffett’s Portfolio: 0.6%
ViacomCBS Inc., now called Paramount Global, is an American multinational media conglomerate based in New York City. The corporation was formed via the re-merger of CBS Corporation and Viacom on December 4, 2019, the two created from the split of the original Viacom in 2005.
The company’s content brands include CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, and CBS All Access. The company has six different revenue segments, where Advertising, Affiliate, and Content Licensing are the most significant revenue source.
The company reported third-quarter results for Fiscal Year (FY)2022 on November 2nd, 2022. For the quarter, the company reported revenues of $6,916 million vs. $6,610 million in 3Q21, or a 5% increase year-over-year. This was due to the significant increase in both Direct-to-consumer and Filmed Entertainment segment, which saw revenue increased 38% and 48%, respectively. The operating income reported was $566 million for the quarter, a significant decrease of (36)% compared to the $879 million the company reported in 3Q21.
The company added 4.6 million global streaming subscribers, overwhelmingly led by Paramount+. Paramount+ subscribers grew to over 67M. Paramount+ subscriber growth was partially driven by successful international market launches, including the UK, Ireland and South Korea. The advertising segment saw a revenue increase of 4% for the quarter.
Earnings for the quarter was down (58)% compared to 3Q2021. For the nine months of the fiscal year, revenue is up 6.9%, while operating income is down (40.5)% due to increase of operation. Earnings was also down for the nine months of the year, from $3.81 per share in the first nine months of 2021, to $1.60 per share so far. This is a decrease of (58)% year-over-year.
Consensus estimates expect the company’s earnings-per-share to be $1.98 for FY2022. This will be a decrease of (43.1)% compared to FY2021.
Click here to download our most recent Sure Analysis report on PARA (preview of page 1 of 3 shown below):
#17: Visa Inc. (V)
Dividend Yield: 0.7%
Percent of Warren Buffett’s Portfolio: 0.6%
Warren Buffett’s investment portfolio holds nearly 8.3 million shares of Visa with a quarter-end market value of $1.9 billion.
Visa is the world’s leader in digital payments, with activity in more than 200 countries. The company’s global processing network provides secure and reliable payments around the world and is capable of handling more than 65,000 transactions a second.
On January 26th, 2023, Visa reported first quarter 2023 results for the period ending December 31st, 2022. (Visa’s fiscal year ends September 30th.) For the quarter, Visa generated revenue of $7.9 billion, adjusted net income of $4.6 billion and adjusted earnings-per-share of $2.18, marking increases of 12%, 17% and 21%, respectively.
These results were driven by a 7% gain in Payments Volume, a 22% gain in Cross-Border Volume and a 10% gain in Processed Transactions. Visa processed 52.5 billion transactions in the quarter.
During the quarter, Visa returned $4.0 billion to shareholders via dividends and share repurchases. Visa repurchased 15.6 million shares of class A common stock in the quarter, for $3.1 billion.
Click here to download our most recent Sure Analysis report on Visa (preview of page 1 of 3 shown below):
#18: Charter Communications (CHTR)
Dividend Yield: N/A
Percent of Warren Buffett’s Portfolio: 0.5%
Warren Buffett’s investment portfolio holds 3.8 million shares of Charter with a quarter-end market value of $1.5 billion.
Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile.
#19: Mastercard Inc. (MA)
Dividend Yield: 0.6%
Percent of Warren Buffett’s Portfolio: 0.4%
Warren Buffett’s investment portfolio holds nearly 4 million shares of Mastercard with a quarter-end market value of $1.47 billion.
MasterCard is a world leader in electronic payments. The company partners with 25,000 financial institutions around the world to provide an electronic payment network. MasterCard has more than 3.1 billion credit and debit cards in use.
On December 6th, 2022, MasterCard raised its quarterly dividend 16.3% to $0.57. On January 26th, 2023, MasterCard announced fourth quarter and full year results for the period ending December 31st, 2022. For the quarter, revenue grew 11.5% to $5.8 billion, which was $10 million above estimates.
Adjusted earnings-per-share of $2.65 compared favorably to $2.35 in the prior year and was $0.07 better than expected. For the year, revenue grew 18% to $22.2 billion while adjusted earnings-per-share of $10.22 compared to $8.76 in 2021.
On a local currency basis, gross dollar volumes for the quarter increased 8% worldwide to $2.1 trillion, with the U.S. growing 7% and the rest of the world improving by 8%. Cross border volumes were up 31%, though this was a slowdown on a sequential basis. Switched transactions grew 8% and cards in use increased 4.8% to 3.1 billion. Expenses were up 10% due to acquisitions, personnel expenses, advertising and data processing costs. The adjusted operating margin expanded 80 basis points to 54.7%.
The company repurchased 7.4 million shares at an average price of $324 during the quarter. Quarter-to-date through January 23rd, 2023, MasterCard repurchased an addition 1.6 million shares at an average price of $369. The company has $11.6 billion, or 3.3% of its market capitalization, remaining on its share repurchase authorization.
Click here to download our most recent Sure Analysis report on Mastercard (preview of page 1 of 3 shown below):
#20: Aon plc (AON)
Dividend Yield: 0.7%
Percent of Warren Buffett’s Portfolio: 0.4%
Aon is a professional services firm headquartered in London, United Kingdom. The company provides a variety of services including consulting, risk management, and health plan management. Aon has approximately 500 offices worldwide that serve 120 countries through a workforce that numbers about 50,000. Aon should generate about $13.2 billion in revenue this year.
Aon reported fourth quarter and full-year earnings on February 3rd, 2023, and results were mixed. Revenue was up 1.6% year-over-year to $3.13 billion, which met expectations. Adjusted earnings-per-share came to $3.89 in Q4, which beat estimates by 23 cents. Adjusted earnings-per-share also rose sharply from $2.02 in Q3, and up slightly from $3.71 in the year-ago period. Organic revenue growth was 5% in Q4, and adjusted operating margin came to 33.2% of revenue. For the full year, organic revenue growth was 6%, and operating margin expanded 70 basis points to 30.8% of revenue.
Total operating costs were $2.11 billion, roughly flat against the third quarter, as well as the year-ago period. Operating income nearly doubled from Q3, and was up from $974 million a year ago to $1.01 billion. Free cash flow was $3.02 billion, up 48% year-over-year.
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Final Thoughts
You can see the following additional articles regarding Warren Buffett:
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Warren Buffett stocks represent many of the strongest, most long-lived businesses around.
This article was first published by Bob Ciura for Sure Dividend
Sure dividend helps individual investors build high-quality dividend growth portfolios for the long run. The goal is financial freedom through an investment portfolio that pays rising dividend income over time. To this end, Sure Dividend provides a great deal of free information.
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