Warren Buffett’s Dividend Stocks Include Procter & Gamble

Berkshire didn’t let concerns about military spending cuts bother it: the holding company maintained its position of 3.9 million shares in General Dynamics Corporation (NYSE:GD). The stock price is down 6% in the last year as the defense contractor (best known for manufacturing military vehicles) may be harmed by reductions in federal spending. The dividend yield is about 3%, though this is lower than can be found at some other aerospace and defense companies. Billionaire Ken Griffin’s Citadel Investment Group was buying General Dynamics last quarter (check out more stocks Griffin was buying).

Sanofi SA (NYSE:SNY) was another high yield stock in Buffett’s portfolio. The $125 billion market cap drug manufacturer pays a dividend yield of over 3.5%. According to the 13F, Buffett had 4.1 million shares of Sanofi in his portfolio at the beginning of January. The sell-side is very bullish on the stock, judging from the fact that the forward P/E is only 6. Fisher Asset Management cut its stake by 6% to a little over 13 million shares between October and December (find Fisher’s favorite stocks).

Berkshire Hathaway reported owning 1.7 million shares of Kraft Foods Group Inc (NYSE:KRFT), a primarily American provider of Kraft products which resulted from the breakup of that company. Kraft Foods has declared a quarterly dividend of 50 cents per share, which makes for an annual yield of a little over 4% at current prices. The breakup may also enable Kraft’s managers to better focus on operations, while earlier they would have had to concern themselves with the needs of the larger business. Clint Carlson’s Carlson Capital disclosed ownership of 1.9 million shares of Kraft Foods in its own 13F filing.

Disclosure: I own no shares of any stocks mentioned in this article.