Investing in Dividend Stocks: The Stability of Warren Buffett's Picks
Dividend stocks are a central aspect of Buffett's success at Berkshire Hathaway.
Legendary investor and multibillionaire Warren Buffett has spent six decades leading Berkshire Hathaway. The company hasn't paid a dividend to shareholders for almost its entire existence, but don't let that trick you into believing that Buffett doesn't like dividend stocks.
In reality, Buffett loves receiving dividends -- just not paying them.
If you look at Berkshire Hathaway's $280 billion-plus stock portfolio, the top eight holdings represent about 75% of the portfolio -- they all pay dividends. A company that pays a growing dividend is typically healthy and profitably growing, which is music to the ears of long-term investors like Buffett. Dividends also represent firm returns, cash in hand, without needing to sell any shares.
