Dividends4Life: Buffett’s Choice Of Dividend Stocks

Buffett’s Choice Of Dividend Stocks

Posted by D4L | Thursday, April 09, 2015 | | 0 comments »

Dividend stocks are one of the best choices when it comes to providing a good return for investors. There are many dividend stocks in the market today; it is all about making the right choices and knowing when to invest in these stocks. One of the greatest investing legends of all times, Warren Buffett, founder and chairman of Berkshire Hathaway (BRK.A) (BRK.B), prefers only high dividend stocks when it comes to putting his stakes in. Though his holding company, per se, does not pay dividends, he has an interesting mix of stocks under his control from the dividend-paying category. The following are some of the best dividend stocks as per Buffett himself. He has picked these stocks based on their current dividend yields, cash-flow generating capacity and potential to grow in the future.

Buffett believes that General Electric (GE) is a company with great promise for the future. The current dividend yield is 3.6%, and the pay-out ratio is 52.9%, which is enough proof to indicate that the company would increase its dividends to a great extent in the future. One company that has managed to stay in the business and come out successful in spite of many challenges in the market is the automobile major, General Motors (GM). The next best dividend stock according to Warren Buffett is the wireless service provider, Verizon Communications (VZ). These stocks should definitely be considered in your portfolio because they have been recommended by Warren Buffett, an investing icon, whom many people look up to. Buffett has picked these stocks based on various futuristic features and with the sole aim of returning maximum possible returns to shareholders.

Source: Guru Focus

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