To keep things even for U.S. investors, we screened out the ADRs held by Buffett and Berkshire Hathaway Inc. (NYSE: BRK-B) even though one is mentioned at the end of the screen to keep them on the list. Of the dozens of stocks held by the conglomerate, these are the eight highest dividends in the Buffett portfolio. We have put the stocks in order of the highest yields first and added in color on each if applicable. As you will see, most of the Buffett top dividend yields still offer upside to their consensus price targets for value investors looking for growth.

ConocoPhillips (NYSE: COP) leads the list with a common stock dividend yield of 4.2%. The company has pledged to keep its dividend strong, and this puts it higher than other oil giants. This stock is now within about 1% of new 52-week highs and the $62.42 share price compares to an analyst consensus price target of about $63.98.

Gannett Co. Inc. (NYSE: GCI) has a surprising yield of 3.6% for its common stock holders. This remains a small holding of Warren Buffett but investors might be surprised that the newspaper and media stock has risen to the point that it is up almost 100% from its 52-week low. At $21.62 as of now, the stock trades right at the $21.61 consensus analyst price target, and the 52-week trading range is $12.17 to $22.21.

General Electric Co. (NYSE: GE) offers a 3.3% yield, partly because shares have pulled back since earnings. The earnings report was not stellar by any means, but we think GE shares were sold off too hard after earnings when you consider the state of the bull market. Shares are at $23.24, and GE’s 52-week high is $23.90. Analysts have a consensus target price of $25.33. GE is likely to have a dividend hike yet again later this year.

Wells Fargo & Co. (NYSE: WFC) is a top bank and Buffett keeps buying more and more of this stock each and every quarter. The 3.2% common stock yield is rather impressive, and this remains at the top of the seven safest banks in America. This bank is challenging the highs from before the recession again, if you back out the dividend payments. At $39.30, its stock hit that multiyear high on May 15, and analysts have a consensus price target of $40.76.

Procter & Gamble Co. (NYSE: PG) has lifted its dividend and is yielding 3.1% after a dividend hike in April. Buffett has trimmed the stake here over time, but activist investors have been on management’s back and pressing it to run the company better. If P&G keeps up its efforts, it could be worth even more. The market cap of $221 billion already makes it one of the largest public companies out there. With shares at $80.68, the consensus analyst target price is $82.78.

J.P. Morgan Chase & Co. (NYSE: JPM) is a personal holding of Warren Buffett rather than Berkshire Hathaway. The bank pays a 3.1% dividend, despite not getting to be as aggressive on its capital plans. Jamie Dimon has been under fire here to split the CEO and chairman roles, but Buffett recently has praised Dimon as a great CEO who also deserves his chairman role. We would caution that one analyst showed that some $20 billion (10% of the share price) could come out of the stock if Dimon leaves the bank because there is a management replacement vacuum right now with no heir apparent. With shares at $51.09, the consensus analyst target is $56.21.

Johnson & Johnson (NYSE: JNJ) recently raised its dividend. The drug and consumer products giant has been a habitual dividend-raising machine, and its product quality controls appear to be over. The 3.1% payout is impressive when you consider that this stock just hit an all-time high on May 15. Note that the consensus analyst price target of $86.50 is actually less than the current price of $87.64.

United Parcel Service Inc. (NYSE: UPS) ranked as number eight with a dividend yield of 2.8%. This comes as the stock is challenging all-time highs, and the shipping giant has raised its dividend payment consistently. With shares at $88.60, analysts have a consensus price target of $93.09 on the stock.

GlaxoSmithKline PLC (NYSE: GSK) is the ADR of the group, and it was only included because it screens out as having such a high yield at 4.3%. That would have put it at the top of the list. As this is an ADR and subject to currency changes altering the payouts each time in dollars for ADR holders, we are only representing the Yahoo! screen for the nominal payout rather than adding color here.

Jon C. Ogg

*The full Buffett and Berkshire Hathaway portfolio can be seen here.

The new Buffett holdings are below.

American Express Co. (NYSE: AXP) was roughly 151.6 million shares, SAME AS last quarter.

Bank of New York Mellon Corp. (NYSE: BK) was almost 19 million shares, which appears to be slightly lower but it had been raised before. What matters here is that it remains a substantial holding still.

Chicago Bridge & Iron Co. (NYSE: CBI) was a NEW POSITION at just over 6.5 million shares worth over $400 million.

Coca-Cola Co. (NYSE: KO) was more than 400 million shares due to the stock split of 2012, but this is virtually the SAME AS BEFORE.

ConocoPhillips (NYSE: COP) is the SAME POSITION at 24.1 million shares, but this is lower than in prior quarters.

Costco Wholesale Corp. (NASDAQ: COST) was the SAME POSITION at 4,333,363 shares.

DaVita Inc. (NYSE: DVA) was a LARGER POSITION and already more than a 10% stake and we recently saw that Berkshire Hathaway had entered into a standstill agreement not to buy more than 25% of the company after already having increased its stake recently. This was listed as 14.97 million shares as of March 31 versus 13.6 million shares before.

Deere & Co. (NYSE: DE) was the SAME POSITION at roughly 4 million shares.

DirecTV (NASDAQ: DTV) was HIGHER YET AGAIN at 37.275 million shares versus almost 34 million shares and that was also higher than before.

Gannett Co. (NYSE: GCI) was the SAME POSITION of 1.74 million shares.

General Electric Corp. (NYSE: GE) is listed as the SAME POSITION at 588,900 shares, but this is still way down from prior reports.

General Motors Co. (NYSE: GM) is the SAME POSITION at 25 million shares, but this was previously up from smaller positions.

GlaxoSmithKline (NYSE: GSK) is the SAME POSITION at 1.51 million shares.

In their report, the energy team at Oppenheimer point to four specific reasons that may allow the refining stocks to recover from the recent sell-off, and continue their market leadership.

1. The continued wide differential between WTI and Brent pricing: Analysts also expect new heavy oil refining capacity expansions to reduce WTI demand and depress its price relative to Brent, leading to wider discounts.
2. Continued cheap natural gas: Even with a pullback in oil prices and a surge in natural gas prices, they expect the gas-oil discount to remain significantly above historical levels.
3. Growing diesel and gasoline imports: For the first time last year, the United States became a net exporter of gasoline and diesel, and given U.S. refiners’ cost advantages and higher export margins, this trend is expected to grow materially in the next few years.
4. Declining environmental spending: While environmental spending is expected to continue, its share of capital expenditures (CAPEX) has steadily declined as most of the key milestones of the Clean Air Act legislation have been achieved. CAPEX as a percentage of cash flow is the lowest for the refiners in decades.

Here are the five U.S. refining stocks that investors may want to buy now.

HollyFrontier Corp. (NYSE: HFC) leads off the Oppenheimer list. It has the highest unit profit per barrel of refining capacity in the industry, and a 39% interest in Holly Energy Partners. L.P. (NYSE: HEP). The stock trades at under six times earnings. The Thomson/First Call estimate is at $60.50. HollyFrontier also pays shareholders a 2.50% dividend.

Marathon Petroleum Corp. (NYSE: MPC) is one of the largest petroleum product refiners, marketers and transporters in the United States. The Wall St. consensus price target for the stock is $93.50. Investors receive a 1.70% dividend.

Phillips 66 (NYSE: PSX) makes the stocks to buy list. Spun off from former parent company ConocoPhillips (NYSE: COP), Phillips 66 has 15 refineries with a net crude oil capacity of 2.2 millions barrels per day, 10,000 branded marketing outlets and 15,000 miles of pipeline systems. The consensus price target is $69. Shareholders receive a 1.90% dividend.

Tesoro Corp. (NYSE: TSO) was another popular name caught up in the refining stock sell-off. Its retail-marketing system includes more than 1,375 branded service stations, of which more than 590 are company operated under the Tesoro, Shell and USA Gasoline brands. The consensus price target for the stock is $59. Investors receive a 1.50% dividend.

Valero Energy Corp. (NYSE: VLO) made Jim Cramer’s lightning round this week as a stock to buy. The company is expected to receive $1.05 billion in cash and incur a $260 million tax liability as a result of the separation of is retail segment next month. The new company, CST Brands (CST on the NYSE) will have 1,032 sites in the U.S., 81% owned, and 61% in Texas, with attractive demographics for convenience stores. Valero is also the world’s largest independent refining company. The consensus price target for the stock is $48.50. Investors are paid a 1.90% dividend.

With all of these market leading refining stocks trading at least 10% below their 52-week highs, now may be the time for investors to add them to their portfolios. Growing earnings and dividends is usually a positive combination in any industry, and refining is no exception.

Yum! Brands Inc. (NYSE: YUM) faces slow KFC sales in China because of worry over bird flu. (Reuters)

An agreement with a large shareholder will mean Goldman Sachs Group Inc.’s (NYSE: GS) Lloyd Blanfein will remain both chairman and CEO. (Reuters)

Microsoft Corp. (NASDAQ: MSFT) will release a seven-inch Surface tablet later this year. (WSJ)

Deutsche Telekom improves its offer for MetroPCS Communications Inc. (NYSE: PCS) as the deal flags. (Reuters)

IDC says PC sales fell 13.9% in the first quarter and partially blames slow sales of Microsoft Windows 8. (WSJ)

McDonald’s Corp. (NYSE: MCD) will try to improve customer service as same-store sales lag. (WSJ)

The European Commission remarks that Spain’s recovery has stalled. (WSJ)

ConocoPhillips (NYSE: COP) says it cannot drill in the Arctic until regulations are made more plain. (WSJ)

Despite gold’s record as a safe haven, prices have dropped 17% since 2011. (WSJ)

China’s currency reserves hit $3.4 trillion. (FT)

China’s local currency lending surges in March, raising concerns about financial risks. (Bloomberg)

Most larger Wall St. firms have their lists of top stocks to buy. We cover these lists for our readers as it gives them a chance to not only see the top stocks to buy, but how the lists have changed. Here is our story on the top UBS stocks to buy in which the firm sees 25% upside.

The current second-quarter report of top picks from UBS A.G. (NYSE: UBS) also includes its analysts “least preferred” list of stocks. Those stocks have an average potential downside of 20%. We screened the list for the stocks with the largest downside potential on a percentage basis. This list may provide investors with a rogues gallery of names to sell short, take profits in, or to just get out of. The following are the “least preferred “ stocks at UBS.

Struggling retailer J.C. Penney Co. Inc. (NYSE: JCP) makes the list. Run by former Apple Inc. (NASDAQ: AAPL) retail guru Ron Johnson, this iconic American retailer has suffered from a constant change of marketing and advertising strategies — none of which has worked. The UBS target price is $10. The Thomson/First Call estimate is $15. Potential downside to the target is 32.8%.

With low margins and growing competition from discount retailers, supermarket chain Safeway Inc. (NYSE: SWY) goes in the shopping cart of stocks to sell. The UBS estimate for Safeway is $19. The Wall St. consensus estimate is $24. Potential downside to the target is 27.9%.

RadioShack Corp. (NYSE: RSH) joins the struggling retailer club. From an outdated name to a horribly competitive niche of retailing, this once successful franchise may be headed for the stock graveyard. The UBS price target is $2. The consensus estimate is close at $2.50. Potential downside to the target is 40.5%.

Integrated oil and gas giant ConocoPhillips (NYSE: COP) is a large cap name that makes the list. America’s third largest oil company spun off its refining, pipelines and chemical divisions a year ago. Some think that was a mistake. The UBS target for the stock is $50. The consensus estimate is $63. ConocoPhillips pays a 4.40% dividend. Potential downside to target 17.2%.

Small cap biotech company Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) may have the proverbial bull’s-eye on its back. With limited revenues and high cash burn, this stock already has almost 25% of the float sold short. The UBS price objective is $11.50. The consensus estimate is $18. Potential downside to the target is 37%.

Home builder Meritage Homes Corp. (NYSE: MTH) may have moved a little ahead of itself. While UBS likes its position in the marketplace, the firm feels that the earnings just do not justify the stock price. The UBS price target is $25 and the consensus estimate is $47.75. With a potential downside to the target of 47%, this is a very contrarian call.

Paper and packaging giant Louisiana-Pacific Corp. (NYSE: LPX) makes the least preferred list. Trading near a 52-week high and also riding the home building boom, the stock is another “fully valued” candidate. The UBS target is $15. The consensus estimate is at $21. Potential downside to the target is right at 30%.

Rounding out the list of stocks to sell is railroad transport Kansas City Southern (NYSE: KSU). It is trading at 26 times earnings, and the UBS team thinks that is extremely high multiple to pay for a railroad. The exposure to a very volatile Mexico is also a concern. The UBS price target for the stock is $83. The consensus is also below the current price at $98.50. The potential downside to the target is 23%.

We remind readers that selling stocks short can be a very risky and rewarding venture. UBS might just be telling its clients that more weakness is ahead in these. We also want to remind investors considering the strategy that short sellers are responsible to pay the dividend or the distribution of names they sell short if that dividend is paid during the time they actual short the stock. The old short selling adage of “stocks often go up like an escalator and down like an elevator” is usually spot on. Especially if you pick the right entry point.

By contrast, imports to the northeast of conventional gasoline for blending have risen from 319,000 barrels a day in 2007 to 430,000 barrels a day in 2012. The lack of refining capacity in the northeast means that the country’s most populous region needs to get its gasoline from somewhere, and for now that means the U.K., the Netherlands, Spain, Norway, and France, as well as India and Canada.

According to MarketWatch, Goldman Sachs released a note to clients today citing excess European refining capacity and higher costs are slashing margins for European-based refiners and concludes that the Europeans should cut their output in order to get prices back up.

That’s not good news for northeast U.S. drivers who have been paying around $0.30 a gallon more for gasoline than the U.S. average. Because northeast refineries were importing virtually all the crude they refined, as the differential grew between Brent crude and WTI crude these refiners sold their plants when they could or mothballed them. Gasoline exports from Europe filled the gap because the Europeans have cut gasoline consumption even farther and faster than U.S. consumers.

Royal Dutch Shell plc (NYSE: RDS-A), Total SA (NYSE: TOT), Exxon Mobil Corp. (NYSE: XOM), BP plc (NYSE: BP), Chevron Corp. (NYSE: CVX), and ConocoPhillips (NYSE: COP) all have major refining operations in Europe and cutting refining output is easier said than done. Current prices for gasoline on the IntercontinentalExchange are higher now than futures prices in December, which means that if the refineries are going to make any money this year, now is not the time to cut output.

That may not be true in a few months, though, depending on the direction of crude prices. The spread between Brent and WTI fell below $14 a barrel recently and is around $15 a barrel today after rising as high as $20 earlier this year. If that gap narrows to below $12 a barrel on a drop in the price of Brent, the economics of refining in Europe begin to tighten.

Goldman might have pulled the trigger a little early on its call for a cutback in refining output in Europe, but such a cut is certainly possible later this year.

BP is barred from entering into new contracts with the federal government until the company can demonstrate to the U.S. Environmental Protection Agency that “the company can provide sufficient evidence to EPA demonstrating that it meets Federal business standards.” The ban was imposed last November.

By not participating in today’s auction, BP indicates that it does not believe that it can rectify its position with the EPA within the 90 days that it takes for the BOEM and the Department of the Interior to review and accept bids on new leases.

A total of 407 bids were received with most of the action on ultra-deepwater tracts more than 1,600 meters under the surface. One tract attracted six bids, the most of any tract up for lease today. Bidders included ConocoPhillips (NYSE: COP), Chevron Corp. (NYSE: CVX), Exxon Mobil Corp. (NYSE: XOM), Anadarko Petroleum Corp. (NYSE: APC), Cobalt International Energy Inc. (NYSE: CIE), and Venari Offshore Ltd.

Earlier today Anadarko and its partners Cobalt, Venari, Conoco, and Marathon Oil Corp. (NYSE: MRO) announced a major discovery in the Gulf of Mexico in a location near the block that attracted six bids today.

The companies paying the most in taxes tend to fall into only a few categories. The first is huge oil companies that often post outsized profits every year. They are both large and getting larger as the price of oil rises and remains near historic highs.

Click here to see the 10 companies paying the most in taxes

Click here to see the 10 companies paying the least in taxes

Another group of companies that pays very high taxes are the large tech companies, particularly those that have been around for some time. Unlike the darlings of the moment such as Facebook Inc. (NASDAQ: FB), Microsoft Corp. (NASDAQ: MSFT) pays tremendous taxes and has done so for many years. Even though its growth has slowed, it continues to be very profitable.

The third group is the most unlikely, at least in the eyes of most investors. The banking industry was nearly ruined by the 2008 global financial crisis. However, since then banks have bounced back, and many have huge profits from trading and investment banking operations, and even from renewed demand for mortgages.

Oddly, while some politicians and the public would like to see the tax burden on the mammoth companies raised, other experts want to see the tax rate reduced. Organizations such as the Tax Foundation have made the case that lower taxes will encourage companies to add workers, expand and make more purchases of plants and other equipment. While this opinion is probably not very popular, it illustrates how complex the issue of corporate taxes can be.

Regardless of how this debate will shake out, each of the 10 companies on this list paid at least $4 billion in taxes, and one of them, Exxon Mobil Corp. (NYSE: XOM), paid more than $30 billion. It is at least some evidence that America’s large companies often pay extraordinary amounts.

To identify the companies that pay the most taxes, 24/7 Wall St. reviewed corporate tax payments for the top 150 companies by revenue. Included in our analysis were company financials, including income, employee count and earnings before taxes. These were either provided by Capital IQ, or obtained by 24/7 Wall St. reviews of SEC filings or financial statements. All data, including taxes paid, are for 2012, or the most recent complete fiscal year.

These are the companies paying the most in taxes.

In the Equity Income portfolio, the changes are to ADD shares of Transocean Ltd. (NYSE: RIG), for 3.8% of the portfolio, and Applied Materials Inc. (NASDAQ: AMAT), for 3.2% of the portfolio. The firm says to DROP all of its shares of ConocoPhillips (NYSE: COP) and to drop all of its position in Bristol-Myers Squibb Co. (NYSE: BMY). The comments are as follows:

• “Although the Transocean shares have appreciated 9% since our November 2012 upgrade to BUY, the rally in the stock appears to be still in its early stages.”
• “The $4.9 billion Varian acquisition completed in 2012 better positions AMAT to serve fast-growing markets such as high-performance, low-power applications processors for mobile devices.”
• “Bristol-Myers is enduring a patent cliff, as it lost exclusivity on blockbuster Plavix last year and loses protection on Abilify in 2015.”
• “Following that meeting, we lowered our 2013 EPS estimate from $5.60 to $5.45, but raised our 2014 forecast from $6.40 to $6.50. Since inclusion in May 2010, the initial COP position has appreciated more than 50%. We have added to the position twice since our initial purchase. In total, the gain from the position exceeds 25%. We also note that the portfolio still holds shares of Phillips 66 (PSX) that were spun off from ConocoPhillips.”

Washington D.C.-based Strategas Research policy analyst Daniel Clifton thinks there is a better than 50% chance the pipeline will be approved by late summer, despite environmental objections. If so, this leg could begin operation in late 2015. Better access to Canada’s oil sands and crude oil extracted in the Bakken shale will benefit producers, as well as Gulf Coast refiners. In a recent research note, the analyst highlighted an array of stocks likely to benefit from the Keystone XL pipeline. Those stocks are:

Canadian Natural Resources Ltd. (NYSE: CNQ) is an Alberta-based independent oil and gas exploration company that has a Thomson/First Call consensus price target of $38.

ConocoPhillips (NYSE: COP) explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas and natural gas liquids around the world. The Wall St. price target for ConocoPhillips is $64. Investors also can take advantage of a rich 4.5% dividend.

Construction equipment leader Deere & Co. (NYSE: DE) is likely to benefit from the pipeline. Shares are trading close to a 52-week high and the consensus price target is $102. The stock also pays a 2.20% dividend.

American giant Exxon Mobil Corp. (NYSE: XOM) is the only large integrated oil company on the Strategas list. The consensus price target is $96, and investors receive a 2.60% dividend.

Netherlands-based refiner and chemical company LyondellBasell Industries N.V.(NYSE: LYB) makes the list. The consensus price target for this basic materials leader is $70.

Houston-based infrastructure construction company Quanta Services Inc. (NYSE: PWR) is expected to be a big winner. The consensus price target is $33.

Another refiner poised to benefit from the Keystone pipeline is Valero Energy Corp. (NYSE: VLO). The stock has been on fire since last June and has a consensus price target of $50.

The State Department is leading the Obama administration review of whether to grant a cross-border permit for TransCanada Corp.’s massive Keystone XL project, but the final call is expected to come from the White House. Under enormous pressure to create jobs and boost the economy, the president seems destined to approve it despite misgivings.

The bottom line for investors is that all the companies on the Strategas list that may benefit from the construction and completion of the pipeline are already doing well and have solid prospects for 2013 and beyond. Adding incremental revenue from such a large and needed project should only help to improve their top and bottom lines.