Berkshire Hathaway's (NYSE: BRK-B) Warren Buffett is widely regarded as the greatest investor of our time. But most people don't realize that dividend investing makes up a large part of his investments. Some of his most sizable holdings pay big yields, which gives the Oracle of Omaha cash to invest in good times and in bad.
Owning dividend companies is a hallmark of Buffett's. They fall straight in line with his strategy of owning fundamentally strong companies whose business models provide inherent advantages against competitors -- otherwise known as "moats." Such companies can consistently reinvest cash flow at high rates of return (as revealed through strong returns on equity) and pay out excess cash flow to shareholders as dividends. Only fundamentally robust and well-managed companies can afford to give their shareholders cash every year.
Source: Motley Fool
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Posted by D4L | Friday, January 21, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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