Warren Buffett's Top 4 Dividend Stocks
For more than 50 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around the broader market. According to the company's 2019 shareholder letter, Berkshire Hathaway has returned an average of 20.3% per year over a 55-year stretch. That compares to a 10% total return each year, inclusive of dividends paid, for the benchmark S&P 500 over this same span. This difference might not sound like a lot, but over a 55-year period, Berkshire Hathaway's stock has outperformed the S&P 500 by more than 2,700,000%.
Much of Buffett's success has been attributed to his knack for picking companies with sustainable competitive advantages and holding them for very long periods of time. However, dividend payouts are the silent heroes that have been padding the Oracle of Omaha's pockets for decades.
Historically speaking, a majority of the companies that Warren Buffett and his team have bought into pay a dividend. That's not entirely unsurprising given that dividend stocks are often profitable, have time-tested business models, and usually have transparent long-term outlooks.
Source Fool.com
