Investing

Warren Buffet's 8 Highest Yielding Stocks Also May Be Incredible 2022 Bargains

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If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world His annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans that are investors in the fund. Known for his long buy and hold strategies, and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the world.

We decided to take a look into his portfolio of 225 holdings for companies that not only look poised to do well this year but also pay the biggest dependable dividends in the portfolio We found eight that are ideal stocks for investors to consider now. While interest rates are poised to move higher this year, these companies should not be damaged by the increase, and some actually may benefit.

Amgen

This biotech giant remains a top stock for investors to buy, and it has sold off since last summer and offers one of the best entry points in years. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience.

The company’s products include the following:

  • Enbrel to treat plaque psoriasis, rheumatoid arthritis and psoriatic arthritis
  • Neulasta reduces the chance of infection due a low white blood cell count in patients with cancer
  • Prolia to treat postmenopausal women with osteoporosis
  • Xgeva for skeletal-related events prevention
  • Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis and oral ulcers associated with Behcet’s disease
  • Aranesp to treat a lower-than-normal number of red blood cells and anemia
  • Kyprolis to treat patients with relapsed or refractory multiple myeloma
  • Repatha, which reduces the risks of myocardial infarction, stroke and coronary revascularization


Amgen also markets Nplate, Vectibix, Mvasi, Parsabiv, Epogen, Kanjinti, Blincyto, Aimovig, Evenity, Amgevitatm, Sensipar/Mimpara, Neupogen, Imlygic, Corlanor and Avsola. The company’s five key marketed products are among the top-selling pharmaceutical products in the world, with the company having expected collective revenues of more than $27 billion in 2022.

Shareholders receive a 3.49% dividend. Amgen stock has traded in a 52-week range of $198.64 to $261.00, and analysts have a consensus target price of $239.96. The final trade for Monday came in at $223.53.

Campbell Soup

While very well known for its namesake products, this company brings a lot more to the table. Campbell Soup Co. (NYSE: CPB) engages in the manufacture and marketing of food and beverage products.

The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. It provides Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and nondairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell’s tomato juice.

The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery and frozen products in the United States; Milano cookies and Goldfish crackers; and Snyder’s of Hanover pretzels; Lance sandwich crackers; Cape Cod and Kettle Brand potato chips; Late July snacks; Snack Factory Pretzel Crisps; Pop Secret popcorn; Emerald nuts; and other snacking products in the United States and Canada.

Campbell Soup stock investors receive a 3.43% dividend. Over the past year, shares have traded between $39.76 and $52.23. The consensus price target is $45.91, and Monday’s closing share price was $43.54.


Clorox

The stock was a big winner during the initial stages of the pandemic but has sold off big-time and is offering the best entry point in over a year. Clorox Co. (NYSE: CLX) manufactures and markets consumer and professional products worldwide.

The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex and Formula 409 brand names. It offers professional cleaning and disinfecting products under the CloroxPro, Clorox Healthcare and Clorox Total 360 brand names; professional foodservice products under the Hidden Valley brand name; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell and Rainbow Light brand names in the United States.

The Household segment provides cat litter products under the Fresh Step, Scoop Away and Ever Clean brand names; bags and wraps under the Glad brand name; and grilling products under the Kingsford and Kingsford Match Light brand names in the United States. The Lifestyle segment offers dressings, dips, seasonings and sauces, primarily under the Hidden Valley brand name. Its natural personal care products are under the Burt’s Bees brand name, and its water-filtration systems and filters are under the Brita brand name in the United States.

Investors receive a 3.32% dividend. The shares have traded in a 52-week range of $139.23 to $196.67. The consensus target for Clorox stock is $167.30. The shares closed at $139.21 on Monday.

Enterprise Products Partners

This is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) services include gathering, processing, transportation and storage of natural gas, natural gas liquid (NGL) fractionation, import and export terminaling, and offshore production platform services.
One reason many analysts may have a liking for the stock might be its distribution coverage ratio. This ratio is well above 1 times, making it relatively less risky among the master limited partnerships.

Enterprise Products Partners stock investors receive a 7.75% distribution. The stock has traded between $20.42 and $25.69 over the past year. The consensus price target is $28.81, and shares closed on Monday at $24.16.

IBM

This old-school tech giant still offers investors a very solid entry point. International Business Machines Corp. (NYSE: IBM) is a leading provider of enterprise solutions, offering a broad portfolio of information technology (IT) hardware, business and IT services, and a full suite of software solutions.

The company integrates its hardware products with its software and services offerings in order to provide high-value solutions. Analysts have cited the company’s potential in the public cloud as a reason for their positive outlook going forward.

The company posted a very solid fourth quarter. The cloud proved to be big in the earnings reports, as did Red Hat, the software giant the firm bought in 2019. Red Hat’s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM’s innovation and industry expertise and sales leadership in more than 175 countries.

Investors receive a 4.78% dividend. IBM stock has traded in a 52-week range of $114.56 to $152.84 and has a $143.75 consensus target. Monday’s closing print was $137.24.

Lazard

This stock has backed up 20% from highs set last fall and is offering an outstanding entry point to go with a large dividend. Lazard Ltd. (NYSE: LAZ) operates as a financial advisory and asset management firm in North America, Europe, Asia, Latin America and elsewhere.
Its Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign and individual clients across various industry areas, including consumers, financial institutions, health care and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, media and telecommunications.

The Asset Management segment offers a range of investment solutions and investment management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

Shareholders receive a 4.55% dividend. Shares have traded between $38.68 and $53 over the past year and have a consensus price objective of $52.88. Lazard stock closed on Monday at $40.77 a share.

Magellan Midstream Partners

This top midstream master limited partnership comes with a juicy distribution. Magellan Midstream Partners L.P. (NYSE: MMP) engages in the transportation, storage and distribution of refined petroleum products and crude oil in the United States.

The company operates refined products pipelines that transport gasoline, diesel fuel, aviation fuel, kerosene and heating oil to refiners, wholesalers, retailers, traders, railroads, airlines and regional farm cooperatives, as well as to end markets, including retail gasoline stations, truck stops, farm cooperatives, railroad fueling depots, military bases and commercial airports.
The company also provides pipeline capacity and tank storage services, as well as terminaling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing and data services to shippers. In addition, Magellan Midstream Partners owns and operates crude oil pipelines and storage facilities as well as marine terminals located along coastal waterways that provide distribution, storage, blending, inventory management and additive injection services for refiners, marketers, traders and other end users of petroleum products.

Investors receive an 8.60% distribution. Shares have traded in a 52-week range of $39.93 to $53.85, and the consensus target for Magellan Midstream Partners stock is $53.00. Monday’s last trade was posted at $48.67.

Verizon

This top telecommunications company offers tremendous value at current levels, and Berkshire Hathaway owns 158.8 million shares. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

Verizon’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Its wireline business has undergone a period of secular decline due to wireless substitution and cable competition.

Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Investors receive a 4.80% dividend. The 52-week trading range is $49.68 to $59.85, and the consensus price target is $59.96. Verizon Communications stock ended Monday’s trading session at $53.00.


Given Warren Buffet’s proclivity for only owning the stock of companies that he understands inside and out, these all make sense now for growth and income investors worried about the potential for a steep market decline. While they could sell off in a large correction, they will hold up far better than most.

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