After finishing last year strong, U.S. equity markets had a volatile start this year, pulling back from all-time highs. Stocks have recovered since and, so far this year, the S&P is up — if only just barely. Some investors are concerned that the current valuation of many stocks is excessive. Such investors may decide that now is the time to reduce exposure to more risky investments and instead target high-yielding, defensive stocks.

For active investors looking to change the exposure of their portfolio to make it less risky, sector rotation is often a popular play. This involves moving from volatile sectors that disproportionately gain as the market rises, such as technology and biotech, to sectors that are less exposed to changes in the market, such as utilities, telecom and consumer staples.

Another strategy investors may consider is to target income. Investors can achieve income by investing in shares that offer large dividend yields, measured by the annualized dividend payout divided by the stock price.

One investor whose portfolio contains a large number of dividend stocks is the legendary Warren Buffett. In addition to private placements and wholly owned subsidiaries, Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) owns a portfolio of publicly traded companies, many of which have large dividend yields.

Many companies Buffet holds share a focus on income. Five of the highest yielding Buffett stocks have dividend yields above 3%, led by ConocoPhillips, which has a 3.6% dividend yield. They also span a wide range of industries. ConocoPhillips and Exxon Mobil are both energy companies, Coca-Cola and Procter & Gamble produce consumer staples, and General Electric is a fellow conglomerate.

To determine the top-yielding stocks in Warren Buffett’s portfolio, 24/7 Wall St. reviewed Berkshire Hathaway’s filings with the U.S. Securities and Exchange Commission (SEC). Berkshire’s most recent relevant filing disclosed its holdings as December 31, 2013.  Dividend yields are based on a screen conducted on May 5, 2014, while prices and market capitalization are current as of market close May 6, 2014. In addition to reviewing SEC filings, we also reviewed Thomson Reuters consensus one-year analyst price targets. Berkshire’s positions in Johnson & Johnson, Kraft Foods Group, and United Parcel Service were not included due to their relatively small sizes.

Be advised that Verizon and its 4.4% yield would be on top of this list, but that position was not revealed until May 15.

These are Warren Buffett’s nine top dividend stocks.

1. ConocoPhillips
> Dividend yield: 3.6%
> Price per share: $77.08
> Market cap: $94.5 billion

Despite reducing his position in ConocoPhillips (NYSE: COP) in favor of rival Exxon Mobil, ConocoPhillips remains a sizable investment within the Berkshire Hathaway portfolio. As of the end of the most recent quarter, the investment totaled nearly $783 million, or more than 11 million shares, down from more than 13.5 million shares in the previous quarter. The oil and gas company’s stock remains a good deal off its all-time highs, and Buffett has called his initial — and far-larger — investment in the company “a major mistake,” citing his own failure to foresee drops in oil and gas prices.

2. Sanofi
> Dividend yield: 3.5%
> Price per share: $54.36
> Market cap: $144.8 billion

Berkshire Hathaway held a position of almost 4 million Sanofi shares in its latest 13-F filing, valued at the time at more than $209 million. The French drug giant produces a range of products, including diabetes treatments, vaccines and veterinary medicine. Although Sanofi (NYSE: SNY) is a relatively small position in the Berkshire portfolio, it carries a considerable dividend yield. The company’s U.S.-listed shares currently trade at $54.36 apiece, and they offer a 3.5% dividend yield. Sanofi pays dividends only annually, however, while U.S. dividends are typically paid out quarterly.

3. General Motors
> Dividend yield: 3.4%
> Price per share: $34.75
> Market cap: $55.7 billion

General Motors Co. (NYSE: GM) may be suffering from recall woes, but Buffett raised his stake from 25 million shares to 40 million shares during 2013. And he may be unlikely to back away from the investment anytime soon. Although Buffett gave Ted Weschler, one of Berkshire’s top investment managers, credit for the decision to invest in GM, he did express faith in company management by offering new GM CEO Mary Barra a vote of confidence. GM’s dividend is still relatively new, but because GM’s stock price has dropped so far this year, its yield rose to just above 3.4%. At $34.75, GM shares are down nearly 17% from a 52-week high of $41.85. The average analyst one-year price target currently stands at $43.

4. General Electric
> Dividend yield: 3.3%
> Price per share: $26.19
> Market cap: $263.5 billion

General Electric Co. (NYSE: GE) was one of several companies in which Buffett purchased preferred stock and warrants during the financial crisis. After redeeming the GE preferred shares into cash in 2011, Berkshire Hathaway converted the warrants into GE common stock last year, therefore increasing its stake in the company’s common stock. At close to $297 million worth of stock, Berkshire’s GE stake is relatively small. One reason Buffett has not invested more in GE could be because both Berkshire and GE are both conglomerates and potentially vie for the same investor dollars. GE shares are down from their 52-week high of $28.09 to $26.19 a share. However, Wall Street analysts have an average one-year price target on GE stock of $29.00, substantially above the 52-week high.

5. Procter & Gamble
> Dividend yield: 3.1%
> Price per share: $81.13
> Market cap: $219.5 billion

Procter & Gamble Co. (NYSE: PG) just announced a 7% dividend hike, bringing its quarterly payout to 64 cents per share for an annual yield of 3.1%. P&G is the top consumer products company in the world, and Buffett has been a long-time shareholder — first, in Gillette for roughly 16 years, and then in Procter & Gamble since the companies’ 2005 merger. At $81.13 a share, the stock is down 5% from its 52-week high of $85.82. The consensus one-year price target for this high-yielding, defensive mega-cap is $87.32.

6. Coca-Cola
> Dividend yield: 3.0%
> Price per share: $40.49
> Market cap: $178.0 billion

Coca-Cola Co. (NYSE: KO) is a long-time holding of Berkshire Hathaway. It fits in neatly with Buffett’s long-term “buy and hold” strategy. Despite this, Coca-Cola has been a recent target for critics, who claim its executive compensation plan is excessive. Buffett himself opposed the plan, but elected to abstain rather than vote against it. Health concerns over soft drinks are an ongoing issue for Coca-Cola, as well as for rival PepsiCo, and have dampened sales. Coke currently offers a 3.0% dividend. Coca-Cola shares have declined nearly 7% from their 52-week high of $43.43 to $40.49 a share. The average analyst price target for the stock is currently $44.59.

7. Wells Fargo
> Dividend yield: 2.8%
> Price per share: $49.09
> Market cap: $258.5 billion

Wells Fargo & Co. (NYSE: WFC) is Buffett’s favorite bank and the largest position in the Berkshire Hathaway portfolio of publicly traded companies, totaling more than $21 billion as of Berkshire’s most recent SEC filing. In fact, Buffett keeps buying more shares each quarter. Wells Fargo is currently yielding 2.8% after raising its quarterly dividend in April to $0.35 per share from $0.30 per share. At $49.09, the stock is only slightly below its 52-week high of $50.49 per share. Analysts’ consensus price target for Wells Fargo is slightly above $52 per share.

8. Exxon Mobil
> Dividend yield: 2.5%
> Price per share: $102.67
> Market cap: $443.7 billion

Exxon Mobil Corp. (NYSE: XOM) shares currently provide a dividend yield of just 2.5%, well below that of rival ConocoPhillips. One likely advantage for Buffett is that Exxon Mobil’s size allows Berkshire Hathaway to establish a larger position in it than in other oil plays, such as another Buffett holding ConocoPhillips. Currently, Exxon Mobil’s market cap is more than $445 billion, versus only about $95 billion for ConocoPhillips. Exxon Mobil has historically been an exceptionally reliable investment, steadily boosting its dividend each year. It is also one of just three companies with a perfect credit rating from Standard & Poor’s, alongside Microsoft and Johnson & Johnson.

9. Walmart
> Dividend yield: 2.4%
> Price per share: $78.01
> Market cap: $251.8 billion

Buffett’s Wal-Mart Stores Inc. (NYSE: WMT) stake has grown to nearly 50 million shares, valued at nearly $3.9 billion as of the company’s most recent filing. With a recent dividend hike, from 47 cents to 48 cents per share each quarter, Walmart stock now yields 2.4%. At $78.01, shares are down roughly 4% from their 52-week high of $81.37. The current consensus price target from analysts is $81 per share. Beyond its dividend, its international presence and the company’s management track record — factors that may appeal to individual investors — Walmart’s market cap is $252 billion. This allows the massive Berkshire Hathaway portfolio to more-easily buy or sell shares without distorting the market.

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