Berkshire Hathaway does not pay dividends, but Buffett likes to invest in companies that do it.
Buffett gravitates consumer -oriented brands and the main economic industries, such as financial and energy services.
Berkshire has several Blue Chip dividends actions that can benefit your wallet if you buy and keep them.
10 actions that we love better than Apple ›
The legendary and multi -loving investor Warren Buffett spent six decades Berkshire Hathaway. The company did not pay dividend to shareholders for almost its entire existence, but do not let it encourage you to believe that Buffett does not like dividend actions.
In reality, Buffett likes to receive dividends – just not pay them.
If you look at the $ 280 billion share portfolio from Berkshire Hathaway, the eight main assets represent approximately 75% of the portfolio – they all pay dividends. A company that pays an increasing dividend is generally healthy and profitable growing, which is music to long -term investor ears like buffett. Dividends also represent business yields, money at the checkout, without having to sell stocks.
Here are its top five choices of dividends, classified by their position size in the Berkshire Hathaway portfolio, and how they can bring stability to your wallet.
Image source: Getty Images.
The iPhone has revolutionized the technology sector and made Apple(Nasdaq: aappl) One of the largest companies in the world. Berkshire Hathaway invested in Apple only about a decade after the launch of the first iPhone, but he has always been one of the best choices in Buffett. It is always the biggest participation in Berkshire despite the reduction of Buffett a large part of his participation last year for a big profit.
There are more than 2.35 billion iOS devices active worldwide. The Apple user base is a massive distribution network for subscription services, regularly generating huge sources of income as people improve old devices. Apple reset its dividend in 2012 and raised it every year since. Buffett qualified Apple Best Stock in Berkshire and quipped that people prefer to abandon their second vehicle than their iPhones.
American consumers love credit cards, which has made American Express(NYSE: AXP) A lucrative investment for Berkshire. Berkshire has owned it since Buffett bought the stock in 1991. Credit cards represent an easily accessible capital, and American Express has built its brand around companies and high salaries.
The company is a lender and, therefore, sensitive to the economy. He opted against dividend increases during difficult times to protect his activities and reduced the dividend only once in the late 1990s. However, the American Express dividend generally increases over time and is one of the oldest investments in Buffett.
Giant emblematic drinks Coca-Cola (Nyse: ko) is a Buffett favorite, who has drunk Coca-Cola products in front of the cameras several times. Berkshire has owned Coca-Cola since 1988, and the stock is a king of dividends with 63 increases in consecutive annual dividends.
The company grows slowly and regularly, selling dozens of brands to billions of consumers worldwide, many of which do not regularly drink packaged drinks. Coca-Cola is developing new products, acquires emerging brands and has an unrivaled distribution worldwide. There is an ocean of opportunities for progressive expansion, which makes Coca-Cola to continue to grow and increase its dividend in the predictable future.
Buffett exchanged and out of America Bank(NYSE: BAC) Towards the 2007-2009 financial crisis, but finally concluded an agreement for privileged actions in 2011. He then used mandates to buy ordinary shares, making the second bank in America a basic detention in the Berkshire portfolio.
Bank of America is a financial tote for American and global economies. With more than 3.3 billions of dollars in assets, it extends over the bank of consumers and commercial, financial markets, student loans, mortgages, obligations, etc. Bank of America has restored his dividend after his delivery of the financial crisis, undoubtedly the worst period for banks since the Great Depression, and has raised it in the past 11 years and count.
Buffett has an affinity for the energy sector; Berkshire operates an energy subsidiary, with many pipelines, public services and other infrastructure. At the end of 2020, Buffett and Co. a leap Chevron(NYSE: CVX) When the pandemic sent less than zero oil prices for the first time and spiral oil stocks on low generational. Buffett has chosen well; Chevron is an adult in oil integrated with exploration and refining operations, and has sufficiently well between pandemic to maintain its sequence of growth in dividends.
Chevron is one of the few stocks of oil and gas which could possibly become a king of dividend; The company increased its dividend for 37 consecutive and cash. The chevron’s field is simple: the modern world depends on energy, and oil and gas remain in high demand, despite the growth of renewable energies over the years. In addition, Chevron gives almost 5%, making it a milk cow for Berkshire Hathaway.
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American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Justin Pope has no position in the actions mentioned. The Motley Fool has positions and recommends Apple, Bank of America, Berkshire Hathaway and Chevron. The Motley Fool has a policy of disclosure.
Investing in dividend actions: the stability of the choices of Warren Buffett was initially published by the Motley Fool
