I'LL HAVE WHAT HE'S HAVING
Warren Buffett Trusts These Stocks — So You Can Too
The Lede
Buffett always keeps certain stocks — ones that pay dividends and have repurchase shares — that thrive with double-digit free cash flow.
Additional Thoughts
Chevron (CVX)
The oil and gas conglomerate has made $11.3 billion free cash flow over the past year, always clearing of margins up to 10 percent regularly. The company has started cutting costs and improving efficiency in order to make their company more attractive to shareholders. Their dividend yield — 4.9 percent — is higher than rivals BP and ConocoPhillips.
Moody's (MCO)
Credit rating leader Moody has enormous cash flow margins, at almost 30 percent. Their share performance has been boosted nearly 65 percent in the last two years, proving its resilience. In the first half of this year the company has returned $735 million to shareholders via dividends and repurchases.
Coca-Cola (KO)
Beverage titan Coca-Cola rounds off Buffet's top three stocks that regularly deliver 20 percent above cash flow margins. After a sluggish start, the company is back on track this year with an 18-percent jump in global unit case volume. Their dividend yield — 3.1 percent — is also higher than rivals Pepsico and Constellation Brands.
