March 1, 2013, 9:57 a.m. EST
Warren Buffett's top dividend stocks (click here)
Despite Berkshire BRK.A +0.10% BRK.B -0.11% achieving a $24.1 billion net gain for shareholders and the conglomerate’s book-value rising 14.4% in 2012, he deemed it a “subpar” performance.
“For the ninth time in 48 years, (click here) Berkshire’s percentage increase in book value was less than the S&P’s percentage gain (a calculation that includes dividends as well as price appreciation),” wrote Buffett, who for decades has measured Berkshire’s overall performance in terms of book value....
...Buffett told Berkshire shareholders that paying them a dividend from the company’s large cash stockpile would be detrimental to the value of their shares over the long term.
“Dividends impose a specific cash-out policy upon all shareholders,” he said. Many shareholders, he added, would prefer to sell a portion of their stock and create their own income stream, or have a lengthy time horizon and therefore “should prefer no payment at all.”
Dividends also are tax inefficient, Buffett said. All of the cash from dividends is taxed every year, he pointed out, whereas shareholders are taxed only when they sell....
Buffet recently has sold some of his smaller stock holdings. He stated the returns were flat lining. One was Walmart.
In my opinion, it is the return of the USA local economies. Americans learned their lesson in 2008 and the development of local economies while trusting people that live in the community with quality control has the best return in life.
In return, Buffet reduced three stocks. (click here) The biggest changer on the short side was Mondelez.
: 71.79, 0.97) has a market capitalization of $230.02 billion. The company employs 2,200,000 people, generates revenue of $446.950 billion and has a net income of $16.454 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34.688 billion. The EBITDA margin is 7.76 percent (the operating margin is 5.94 percent and the net profit margin 3.68 percent).
Financial Analysis: The total debt represents 27.62 percent of the company's assets and the total debt in relation to the equity amounts to 74.92 percent. Due to the financial situation, a return on equity of 22.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.86. Last fiscal year, the company paid $1.46 in the form of dividends to shareholders....
A little surprised about Archer Daniels Midland Company. I see ADM as a moral choice. They are very involved in alternatives to the traditional chemical industry. They have significant manufacturing plants for ethanol in the USA. It is involved in American agriculture in a big way.
...Since joining ADM, (Patricia A.) Woertz (click here) has led the company to record financial results while growing its sourcing, transportation and processing networks through select acquisitions, strategic capital investments, and a number of global joint ventures and partnerships. She has also worked with ADM’s board and senior leadership to strengthen the Company’s strategic focus and planning, and to promote safety, continuous learning and sustainability initiatives companywide....
...She serves on the board of directors of The Procter & Gamble Company and the US-China Business Council. She is a member of the International Business Council of the World Economic Forum and The Business Council. In 2010, she was appointed to the President’s Export Council by President Obama....
He is right. She is everywhere. Holding too many companies reliant on each other's performance is not good. It is like holding shares in one company rather than a diversification to 'hedge' markets. Yep.
