On Friday, Warren Buffett let it be known on Bloomberg that Berkshire Hathaway Inc. (BRK.A) had sold shares in ConocoPhillips (COP) in favor of Phillips 66 (PSX). Okay, it was actually one of his deputy stock pickers that made the move, but in essence it still has his support.
This move is interesting considering the recent split from ConocoPhillips and the announcement that Phillips 66 would have less than half the dividend yield of its big brother. The $.20 quarterly dividend will only amount to a 2.2% yield.
Maybe this shouldn't be a huge surprise as Buffett has long avoided paying dividends at Berkshire. The market though loves dividend paying stocks, and ConocoPhillips has one of the juiciest yields at nearly 5%.
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Disclosure: Long COP. Please review the disclaimer page for more details.