What Buffett knows though is that a company that pays out a consistent dividend, is likely in good financial health and has proven itself to be a successful business. Especially if it has a track record of increasing the dividend payout to shareholders.
Let’s take a look at some of the Oracle of Omaha’s favorite dividend stocks.
American Express
One of his longest-held stocks is credit services provider American Express Company (NYSE: AXP), which has been doubling Buffett’s money on a regular basis.
AmEx has been a part of Berkshire Hathaway’s portfolio since 1993. With a share price of $105.05, AmEx pays out a solid 1.64% dividend ($1.72) per share. This cash reward has occurred every quarter since the turn of the century.
Bank of America
With the Berkshire Hathaway CEO continuing to withdraw the company’s stake in a longtime holding Wells Fargo, it’s become apparent what his new favorite buy-and-hold bank stock is: Bank of America (NYSE: BAC).
Receiving permission from the Federal Reserve Bank of Richmond to exceed a 10% stake in BofA, Buffett’s more than one-billion-share stake in the company should yield almost $744 million in dividend income over the next year.
