In this article, we discussed the importance of dividend
stocks for Berkshire Hathaway's portfolio and examined the 12 best value
dividend stocks to buy now according to Warren Buffett.
The legendry value investor Warren Buffett’s investment
holding Berkshire Hathaway expects to collect close to $4 billion in dividends
this year. Buffett’s stock portfolio is composed of 49 stocks at the end of the
latest quarter and 31 of them pay a dividend. What’s more, Berkshire's nine of
the top ten stock positions, which accounted for 87% of the overall 13F
portfolio, offer hefty dividends. Indeed, the dividend potential of several of
Buffett's stock holdings will increase strongly this year due to economic
reopening and easing social distancing policies. Further bolstering dividend
returns for Berkshire Hathaway Inc. (NYSE: BRK-A) this year is its big stake in
dividend-paying financial and energy companies that are leading the S&P 500
gains. The growth in energy, consumer staples, and financial stocks is one of
the key reasons behind Berkshire Hathaway’s stunning stock price rally of 39%
year to date.
The recovery in value and dividend stocks pushed the S&P
500 and Dow Jones Industrial Average to a new all-time high this week. The
flurry of strong economic data has also been adding to SPI and DJI gains. The
jobless claims tumbled below 600,000 while reports hint retail sales grew
nearly 10% for March compared to the previous month. The improving business and
economic trends are helping dividend stocks in beating the growth stocks and
the broader market index for the first time in many years. The Dow Jones U.S.
Select Dividend Index grew 21% so far in 2021 and S&P 500 high dividend
index is up 19% year to date.
Warren Buffett says investing is very simple:
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