5 High-Yield Healthcare Stocks Buffett Could Buy

We ran a screen to filter healthcare stocks Warren Buffett would like: good returns on equity above 10%, a dividend yield of over 2%, sustainable business advantages producing significant free cash flows and a price/free cash flow ratio of under 20. We also screened for market caps larger than $30 billion in order to "move the needle," meaning, the oracle from Omaha could acquire enough shares to make the investment worthwhile given Berkshire's (BRK-A) enormous size. Moving forward, we think its possible that Buffett or his successor(s) will add some healthcare related positions to the portfolio given the cheap valuations of the sector. (But we don’t think Berkshire will pay a dividend.) According to the most recent 13F filing, Berkshire’s portfolio was only weighted 5.4% towards the healthcare sector. Considering his long-term positions in Glaxokline Smith (GSK), Sanofi-Aventis (SNY) and Johnson & Johnson (JNJ), these high-yielding names below seems plausible.... Read more