Warren Buffett's favourite tech stock

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and analyst Jason Moser …

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The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and analyst Jason Moser discuss topics across the investing world.

Right now, we know all about Buffett's big four stocks: Coca-Cola (NYSE: KO), Wells Fargo (NYSE: WFC), American Express (NYSE: AMEX), and IBM (NYSE: IBM).

Buffett built up a big position in IBM, even though he's been traditionally leery of tech stocks. This company has performed extremely well as of late, however, and Berkshire now owns 5.5% of shares outstanding. Jason likes the stock as well, and he walks us through the bullish case.

IBM currently pays a yield of around 1.5%, which is far below the average a typical ASX blue-chip company would pay. As a comparison, AMP Limited (ASX: AMP) yields around 6.6%, Harvey Norman (ASX: HVN) 5.2% and JB Hi-Fi Limited (ASX: JBH) 7.4%.

If you're interested in learning about some ASX companies that deliver higher yields, The Motley Fool has compiled a special free report outlining our 3 top, dependable, dividend-paying stocks. It's called "Secure Your Future With 3 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

 

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This article was originally written by John Reeves, and published on Fool.com. It has been updated.

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