Are you looking for top dividend stocks for your portfolio? Why not look at what the Oracle of Omaha holds and see which ones are priced at a value? Well, I’ve done the work for you already. They include American Express Company (NYSE:AXP) and International Business Machines Corp. (NYSE:IBM). I will outline why they’re good values for a dividend portfolio today.
Here are Warren Buffett’s top dividend stocks that are priced at a value, when I cross-referenced with a couple fundamental analysis sources.
Is American Express Company Your Dividend Stock?
American Express Company is Berkshire Hathaway’s fifth largest holding worth over $11.6 billion that equates to 15% ownership in the company.
American Express is a global services company. Its main products include charge and credit cards, and travel services that are enjoyed by consumers and businesses around the world. As of March 1, 2015, American Express brought in annual revenue of $34.3 billion and net income of $5.9 billion.
At $77 per share, American Express is priced roughly at a multiple of 12.6 with estimated earnings growth of 13%. Using a multiple of 15, American Express shares would be worth roughly $94. This implies American Express is priced at a discount of 18%. This margin of safety is more conservative than Morningstar’s fair value estimation of $95.