Airline operators are no longer trying to undercut one another to death in the name of expansion. Instead, they’re now attempting to add value through strong profitability, robust cash flows, and healthy capital returns in the form of dividends and share repurchases–things that Buffett has always adored. Of course, those are also qualities that I constantly advise our Income Investors readers to look for in a company. So with that in mind, let’s take a glance at each one of Buffett’s airline purchases for possible dividend stock opportunities.
Berkshire bought in as airline stocks were flying high, seemingly running counter to Buffett’s “buy low” mantra. Well, Buffett isn’t exactly waiting for a pullback to buy more. Because according to a recent 13F filing, Berkshire not only added to holdings of Delta Air Lines, Inc. (NYSE:DAL), United Continental Holdings Inc (NYSE:UAL), and American Airlines Group Inc (NASDAQ:AAL), but also purchased a new stake in Southwest Airlines Co (NYSE:LUV). That brings Berkshire’s total investment in major U.S. airlines to more than $9.0 billion. (Source: “Form 13F,” U.S. Securities and Exchange Commission, last accessed February 17, 2017.)
Source: Income Investor
Related Articles:
- 8 Dividend Stocks With A 15% Yield In 15 Years
- Don't Touch These 5 Dividend Stocks!
- 9 Higher Yielders With A Low Free Cash Flow Payout
- 6 Dividend Stocks Headed In The Right Direction
- Are The Dividends Safe For These High-Yielding Stocks?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
How do you assess risk? Different investors have different approaches, and when a Black Swan event topples the market, risk assessment becom...
-
Today, we’ll look at three high-yield dividend stocks that have earned a ‘perfect 10’ from the Smart Score. For investors seeking a clear fo...
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
With the price of oil rebounding, I wanted to find five cheap energy stocks that have solid dividend yields. In other words, the dividends a...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right ...
-
“Research shows that dividend cuts are associated with significant share price declines on announcement,” Cornell University Professor of Fi...
-
Dividend investing is a great way for investors to earn reliable income. Dividend stocks tend to have stable, cash-generating business model...
-
We’ve pulled up the details on some of Oppenheimer's recommendations. These are stocks with a specific set of clear attributes, that fre...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.