Warren Buffett's Buying This Passive Income Stock: Should You?
Warren Buffett is known for seizing opportunity. The billionaire investor likes to snap up strong businesses at a good price. And he has a soft spot for dividends. That's why it's no surprise that Buffett's Berkshire Hathaway added to its position in McKesson (NYSE: MCK) in the second quarter of this year.
McKesson is a leader in the distribution of pharmaceutical products. And the company is starting to build its reputation in the world of dividends. It recently increased its payment for the sixth consecutive year. Now, the question is: Should you follow Buffett into this passive income stock?
First, let's talk about the role a passive income stock can play in your portfolio. These stocks offer you dividends each year -- regardless of the stock's actual performance. What do you have to do to earn these dividends? You just have to own the stock. It's as simple as that.
Source Fool.com
