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5 ‘Smart Money’ Dividend Stocks to Buy

A look at high-conviction income plays from five superinvestors

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Warren Buffett: Wal-Mart

Walmart (NYSE:WMT)Yield: 2.1%

We’ll start with Mr. Buffett. Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) has been accumulating shares of retail behemoth Wal-Mart (NYSE:WMT), and it’s not hard to understand why.

Wal-Mart is exactly the kind of company that Buffett is famous for buying. It has a dominant position as the leading discount retailer in the world. It has competitive “moats” in its size and logistical efficiency that competitors have a hard time scaling. And naturally, it’s attractively priced. Wal-Mart trades for 14 times 2013 expected earnings and at 0.55 times sales. Its 2.1% dividend, while not exceptionally high, is growing at a nice clip. Wal-Mart raised its dividend 9% last year and 20% the year before.

Article printed from InvestorPlace Media, http://investorplace.com/2012/07/5-smart-money-dividend-stocks-to-buy-wmt-aapl-noc-ggp-gs/.

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