If any investor has stood the test of time, it is Warren Buffett, and with good reason. 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. 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.
With the market churning back and forth this year, up 2% and then back down 2%, while interest rates are rising and inflation rages at the highest levels in 40 years, we thought it may be important to look for buy-and-hold stocks that pay the biggest dividends in the Berkshire Hathaway portfolio. Why? Because the best tactic for the rest of this year, and perhaps beyond, is to buy dividend blue chips, hold them and let the stock market find its footing. Trading this market has become difficult, and with algorithm program trading often skewing performance, the Buffett way may be the best way.
While the following five Buffett holdings are Buy rated at major Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Amgen
This biotech giant remains a safer way to play the massive potential growth in biosimilars. 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 skeletalelated 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
Shareholders receive a 3.06% dividend. Jefferies has a $280 target price on Amgen stock. The consensus target is lower at $246.94, and the final trade for Wednesday came in at $255.38 a share.
Bank of New York Mellon
Founded in 1784, this is the oldest company in the Fortune 500. Bank of New York Mellon Corp. (NYSE: BK) provides a range of financial products and services in the United States and internationally. The company operates through the following three segments.
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