Warren Buffett Strategy: How to Get ‘Buffett Yield’

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Card services

Buffett holds moderately sized positions in card services giants Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA), and both pay roughly half the level of earnings-to-dividends as industry norms dictate they should. Mastercard has doubled its quarterly dividend in the past year alone while Visa isn’t too far behind. Both still offer yields below 1%, but it’s reasonable to expect that more growth is on the horizon for income-seeking investors. We’ll be watching Buffett’s stakes in these two companies very closely moving forward.

The best of the rest

Out of the 42 stocks held in Buffett and Berkshire’s equity portfolio, just three more make the cut: Moody’s Corporation (NYSE:MCO), National-Oilwell Varco, Inc. (NYSE:NOV) and Viacom, Inc. (NASDAQ:VIAB). By now, you probably understand they each offers a below-average payout ratio with exceptional dividend growth, so we won’t rehash that information again. It is worth noting that this trio lies outside of Buffett’s 30 largest holdings, and you should also know that of the three, Viacom offers the highest yield of almost 1.5%. The differential in yield between each is within 15 basis points, though, so it’d be rational to consider all three.

So there you have it: seven names and one-sixth of Warren Buffett’s equity portfolio that deserves the most attention from dividend investors. Check back here for more updates on Buffett strategy.

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