3 High-Yield Dividend Stocks Warren Buffett Loves

Few CEOs have delivered the green to their shareholders quite like billionaire Warren Buffett. Since taking the helm of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, he's led his company to an average annual return of 20%. That might not sound all too nominally impressive, but he's overseen the creation of over $600 billion in shareholder value and a return of almost 3,400,000% for the company's Class A shares (BRK.A).

The Oracle of Omaha's success is based on a number of factors, such as his focus on sectors that he understands well and his leanings toward cyclical companies. But what might arguably be Berkshire's biggest tailwind is Warren Buffett's affinity for dividend stocks. This year, Berkshire Hathaway is set to collect more than $5 billion in dividend income.

Income investors always want the highest yield possible with the least amount of risk. Unfortunately, the data shows that risk and yield tend to be correlated once you hit high-yield status (i.e., yields of 4% or higher). But that hasn't stopped Buffett and his investment team from piling into these three high-yield dividend stocks.

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Source Fool.com