In today's world of high-frequency, short-term trading, many funds have sprung up that take positions based purely on statistics and for mere seconds (or less) at a time. Fundamentals get thrown out of the window; long-term appreciation and dividends are often never considered.

#-ad_banner-#Traditional long/short hedge funds are still generating impressive returns using tried-and-true methods, however. Heavy research into valuation and commitment to investment ideas over a greater horizon will never go out of style. This type of investing mantra is suitable for the great majority of investors as well.

Getting a peek into that research can be done each quarter when funds release their long positions in a filing called a Form 13F. While 13F data has its pros and cons, following managers who have demonstrated performance over a long-term horizon can lead to profitable investments.

Warren Buffett, esteemed investor, founder and the largest stakeholder of Berkshire Hathaway (NYSE: BRK), is the polar opposite of a short-term trader. The Oracle of Omaha is a legendary buy-and-hold investor, which is why his filings can be so insightful.

I've pored over Berkshire Hathaway's 13Fs spanning the last 12 quarters with a few criteria in mind.

First, find big-cap stocks that have had a home in the fund's portfolio for three years or longer. Second, pick out large dividend-payers (great than a 3% yield) with a history of yield growth. Finally, whittle the results down to three stocks from different industries for diversification purposes.

At 3.5%, General Electric (NYSE: GE) offers the highest dividend yield of the stocks in my screen. The company is currently undergoing significant internal change, looking to file an IPO for its consumer finance unit in the coming months.

The Oracle of Omaha is a legendary buy-and-hold investor, which is why his filings can be so insightful.

GE Capital, as it is known, accounts for nearly half of the company's operating earnings. The spin-off could unlock billions in value for GE shareholders and reduce credit and liquidity risk overall. On a performance note, the stock has returned 25% in the past three years, not including dividends. While not drastic, the slow and steady growth is respectable when combined with the dividend payout.

As many investors know, the Coca-Cola Co. (NYSE: KO) is one of Buffett's most prolific holdings.

Since 1988, Berkshire Hathaway has poured $16.5 billion into Coca-Cola, making it the fund's second-largest position at 15.8%, taking a backseat only to Wells Fargo's (NYSE: WFC). The 400 million shares owned have steadily increased in value over the years since he began purchasing the stock in 1989, registering a modest gain of 18.6% in the past three years. Buffett still has high hopes for the brand, citing that 3% of the liquids that the earth's population drinks are Coca-Cola products. India and China are being targeted heavily in the coming years, with a portion of the company's $1 billion in marketing efforts going to those emerging markets as 2016 approaches.

Procter & Gamble (NYSE: PG) was a standout pick in my screen, primarily due to its yield of 3.1% that has been growing since 1957. The consumer goods staple faces similar challenges to Coca-Cola in that its global presence is subject to currency pressures, which recently accounted for a drop in fiscal second-quarter 2014 earnings. However, PG has built a vast portfolio with brand names recognized worldwide, bolstering its ability to consistently pay and increase its dividend. The stock has seen performance similar to GE looking back three years, prompting Buffett to take profits and lighten his position slightly over the study period.

Warren Buffett's Top 10 Holdings

Risks to Consider: Despite being aware of Buffett's investing approach, one should use his disclosed portfolio as a framework. Berkshire Hathaway has the solvency and time to see investments through good times and bad. Also, take note that all dividends were determined at today's dates, so they may have carried different yields in the past.

Action to Take --> Are any of the names overly surprising? Not necessarily, but if you have been on the lookout for conservative, high-income investments, consider these three names to add to your portfolio. Keep long-term appreciation in mind, but view the dividend payouts as consistent income or as opportunities to reinvest. Both GE and PG are already past their ex-dividend dates, but Coca-Cola will be trading ex-dividend on March 12, leaving time for investors to still get in if looking to take advantage of the upcoming payout.

Related Articles
  1. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  2. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  3. Economics

    Will Recession Become Reality in 2016?

    Due to creative measures by central banks, there is no telling when a recession will actually occur, but natural economic forces will eventually win.
  4. Investing

    A Surprising Way to Seek Income as Rates Rise

    As an alternative investment, income-seeking investors may turn to dividend-paying exchange traded funds (ETFs) as a way to seek both income and growth.
  5. Stock Analysis

    Will the Stock Rally Last Past Christmas?

    The stock market can't seem to make up its mind. Will investors end up with coal for Christmas or might their wishes come true?
  6. Economics

    The Biggest Oil Producers in the Middle East

    Discover which countries produce the most oil in the Middle East, a region long known for its influence on international petroleum markets.
  7. Economics

    The Biggest Oil Producers in Africa

    Discover which African countries produce the most oil, and learn more about which domestic and international oil companies operate in each country.
  8. Economics

    The Biggest Oil Producers in Latin America

    Find out which countries produce the most oil in Latin America, and learn about some of the biggest oil companies operating in each country.
  9. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  10. Stock Analysis

    The Biggest Oil Producers in Asia

    Learn which Asian countries deliver the most crude oil to market, and discover what companies are the biggest producers in each country.
  1. What is the long-term outlook of the metals and mining sector?

    An industry agency council was established by the World Economic Forum in 2014 to serve as an advisory board on the future ... Read Full Answer >>
  2. What is the railroads sector?

    The railroads sector is comprised of publicly traded stocks for companies that operate railroad tracks and/or trains. Railroad ... Read Full Answer >>
  3. Who are Amgen Inc.'s (AMGN) main competitors?

    Biotech giant Amgen Inc (AMGN) bills itself as one of the first biotechnology firms. It was founded in 1980 and has grown ... Read Full Answer >>
  4. What's the most expensive stock of all time?

    Back in late August 2012, Apple’s (AAPL) stock price reached nearly $700 per share. The stock has since split but has yet ... Read Full Answer >>

You May Also Like

Trading Center