Warren Buffett’s Long-Term Dividend Holds: Sanofi SA (ADR) (SNY) and More

International media and marketing company Gannett Co., Inc. (NYSE:GCI) gave impressive performance stretching back a year, netting a double-digit rise in share price spurred along by consistent earnings beats every single quarter. While overall sentiment is still positive for the stock, some analysts are becoming tepid as Gannett’s core business (newspaper sales) has seen more competition from the likes of News Corp (NASDAQ:NWSA) and falling circulation numbers from consumers. However, the stock continues to earn investors like Buffett a yield of 4.1%, which, when matched with the startling performance of the stock last year, means a respectable growth and income investment for those who have been in on a longer-term scale. Billionaire David Harding upped his position by 30% according to his last 13F filings.

Sanofi SA (ADR) (NYSE:SNY) is another high-dividend healthcare play on our list, earning a still-respectable yield of 3.6%. Once again, the stock provided significant gains on both the income and growth fronts for Buffett, despite their last quarterly earnings report showing negative growth in revenue versus the same quarter a year prior. Forward price-to-earnings ratios show a decline versus the same ratio calculated with the last twelve months earnings. We expect the stock price to come down to meet the reduced P/E numbers, as SNY will have to battle government regulations and increased distribution of generics in 2013. Abrams Capital Management maintains a $50 million position in the stock.

Last on our list of Buffett’s long-term dividend plays is General Electric Company (NYSE:GE) . GE barely made our list, as Berkshire Hathaway cut their position by almost 90% going into their Q3 13F filing last year. The fund started with roughly $140 million invested in the stock, yet only $13 million is left after they unwound that trade. Buffett is most likely taking profits here, as the stock has given a 25% return since the start of 2011. Additional income was given in GE’s 3.4% dividend yield. Steve Cohen of SAC Capital Advisors mirrored Buffett’s approach and reduced his bullish call position by over 60%.

The article Warren Buffett’s Long-Term Dividend Holds originally appeared on Fool.com and is written by Jake Mann.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 30 percentage points in 13 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!