Warren Buffett is famous due to the long -term success he has reached Berkshire Hathaway. But there are two interesting things about this business. First of all, it is a bit like a common investment fund. Second, it does not report dividends despite the fact that Buffett often invests in paid dividend companies. Here's why it matters and why you may want to buy one of these three dividends he has.
One of the basic principles of Buffett investment approach is to buy good businesses when they are at an attentive price. But the next step is to hold in the long term so that he can benefit from the growth of the companies he buys. One of the shades that is lost is that he uses the money generated by the companies he has or has in the Berkshire Hathaway's ordinary scholarship portfolio to reinvest in his business. This allows him to worsen these cash flows over time, which improves the yields he generates for investors.
From a large -scale point of view, you can do the same in Dividend reinvestment. All you need is a telephone call to your broker, or, more likely, a button Press the website of your broker or in its application. And in a quick and easy decision, you will invest more like Warren Buffett.
But what's going on if you want to invest even more as Omaha's Oracle? Well, three paid actions in dividends he has today are Coca-Cola (Nyse: ko),, Chevron (NYSE: CVX)And Kraft Heinz (Nasdaq: KHC). Here is an overview of these three buffett stocks to see if they will be a good choice for the reinvestment of buffett style dividends.
Coca-Cola is a very easy-to-love business. It is the company of advanced drinks with a diversified company worldwide. It is large enough to have economies of scale in distribution, marketing, research and development, and it can, and do, act as a consolidator of the industry. The dividend has increased each year for more than five decades, which makes him a king of dividend. Dividends yield is 2.9%, which is well above market performance today.
For conservative dividends investors, it is a solid choice. The only problem is that the stock seems a bit expensive for the moment, with price / sales and price ratios above their five years. However, if you are ready to pay a bonus for income security, Coca-Cola could be suitable for your wallet.
Another industry leader in the buffett portfolio is a giant energy chevron. It is one of the largest integrated energy companies that you can buy, with a company that extends upstream (energy production) through the environment (pipelines) and downstream (chemicals and refining). This diversification helps soften the impact of inherent oscillations in the energy sector focused on basic products. In addition to that, the company has a very solid assessment, which allows it to take a lever effect during the slowdowns of the industry to support its activities and its dividends.
