Warren Buffett Bought These 8 Dividend Stocks

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May 19, 2015

Warren Buffett (Trades, Portfolio) is one of the most respected investors on the market today. He created a massive portfolio during his career, which is worth around $107 billion. Recently, Warren announced his latest stock buys and sells during the past quarter.

His moves are watched closely because value and dividend growth investors try to catch a new idea from his thoughts and strategic buys and sells.

During the past quarter, Warren bought eight stocks and reduced seven positions. He did not close a full position or initiate a new one.

The biggest acquisition by value was Wells Fargo (WFC, Financial), followed by Visa (V, Financial). Most of his stock increases had a P/E of less than 15 and pay a dividend.

These are the latest dividend stock buys from Warren Buffett (Trades, Portfolio) from Q1/2015:

#1 Intl. Business Machines -- Yield: 3.00%

Intl.Business Machines (IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $170.42 billion.

Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).

Financials: The total debt represents 34.72% of IBM's assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by IBM.

Twelve trailing months earnings per share reached a value of $15.75. Last fiscal year, Intl. Business Machines paid $4.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.99, the P/S ratio is 1.84 and the P/B ratio is finally 14.44. The dividend yield amounts to 3.00%. - Read more here: Warren Buffett Buys Surprisingly These 8 Dividend Stocks...