Warren Buffett drops 3 blue-chip stocks with huge dividends – 24/7 Wall St.

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If any investor has stood the test of time, it’s Warren Buffett. For years, “The Oracle of Omaha” has had a rock star presence in the investment world. His annual meeting of Berkshire Hathaway shareholders attracts literally thousands of loyal fans who are investors. Known for his long buy-and-hold strategies and massive portfolio of public and private equity interests, he remains one of the world’s leading investors.

One of the reasons for Berkshire Hathaway’s resounding success over the years is that Buffett and his right-hand man, Charlie Munger, have always tried to stick with mainstream ideas that they understand. It turned out to be a winning hand. Additionally, many of their portfolio companies pay solid and reliable dividends.

Given Berkshire Hathaway’s buy-and-hold strategy, we were surprised recently when Buffett unloaded four top stocks, three of which pay substantial dividends. Longtime investors and Buffett gurus know his quote that “His favorite stock for an S&P 500 stock is forever.” Thus, the sales were somewhat surprising.

Despite Berkshire Hathaway’s sales, all four companies are still rated Buy on Wall Street. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

General Motors

It’s the only stock of the four that doesn’t pay a dividend, and the venerable car and truck giant is expected to be a big player in electric vehicles. General Motors Co. (NYSE: GM) designs, builds and sells trucks, crossovers, cars and automotive parts and accessories worldwide. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun and Wuling brands.

GM sells vehicles, including purpose-built vehicles, to dealerships for consumer retail, as well as to fleet customers, including daily car rental companies, fleet customers commercial, leasing companies and governments.

Additionally, it offers safety and security services for retail and fleet customers, including automatic collision response, emergency services, roadside assistance, crisis assistance, Stolen vehicle assistance and turn-by-turn navigation. Its connected services include mobile applications allowing owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, in-market in-market commerce, voice embedded, voice assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L and 4G LTE wireless connectivity.

The company also develops and markets autonomous vehicle technology. In addition, it provides automobile financing and insurance services, as well as software services and subscriptions.

The benchmark price target of $60 on General Motors shares is well above the consensus target of $52.16. Shares ended Thursday at $38.72.

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