Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) has a portfolio of dozens of common stocks, many of which were hand-picked by CEO Warren Buffett himself. Buffett is a big fan of reliable dividends, so as you may expect, many of the stocks in the portfolio are dividend payers.However, some have high dividend yields, some pay Berkshire more money overall than others, and some have excellent track records of dividends. Berkshire's "top dividend stock" depends on how you define that term.In terms of dividend yield, the top dividend stock in the portfolio is real estate investment trust (REIT) Store Capital (NYSE: STOR). On the other hand, the stock that pays Berkshire the most money each quarter is Kraft Heinz (NASDAQ: KHC). Finally, the Buffett stock with the longest track record of dividend increases is Coca-Cola (NYSE: KO).The highest-yielding stock in Berkshire's portfolio is also one of its newest investments. Real estate investment trust Store Capital pays a … [Read more...] about Investing: What is Warren Buffett’s top dividend stock?
High yield dividend stocks
The tax-reform proposals winding their way through Congress don't deal much with dividends, yet income-seeking investors could benefit indirectly if other provisions get enacted.A reduction in the corporate tax rate would enhance profitability and cash flow in general, which could lead to higher payments to shareholders. The impact could be greater if lower rates and other provisions encourage companies to bring back or repatriate as-yet-untaxed income earned by foreign subsidiaries.Not that companies have been shy about paying dividends. Larger U.S. corporations included in the Standard & Poor's 500 index of stocks shelled out a record $105 billion in dividends during the third quarter, and dividend payments for the current quarter easily could set another record, said Howard Silverblatt, a senior industry analyst at S&P Dow Jones Indices."Dividend growth is up and decreases have significantly declined," he said.Barring late-year surprises, 2017 will … [Read more...] about Tax reform or not, dividend investors poised for good year
The tax-reform proposals winding their way through Congress don't deal much with dividends, yet income-seeking investors could benefit indirectly if other provisions of the plans are enacted.A reduction in the corporate tax rate would enhance profitability and cash flow in general, which could lead to higher payments to shareholders. The impact could be greater if lower tax rates and other provisions encourage companies to bring back or repatriate as-yet-untaxed income earned by foreign subsidiaries.Not that companies have been shy about paying dividends. Larger U.S. corporations included in the Standard & Poor's 500 index of stocks shelled out a record $105 billion in dividends during the third quarter, and dividend payments for the current quarter easily could set another record, said Howard Silverblatt, a senior industry analyst at S&P Dow Jones Indices."Dividend growth is up and decreases have significantly declined," he said.Barring late-year … [Read more...] about Tax reform or not, dividend investors are poised for a good year
By Chuck Mikolajczak NEW YORK (Reuters) - High dividend yield stocks such as telecoms and utilities are looking more tempting as investors become increasingly nervous about the outlook for equities and as U.S. Treasury yields hover near a 10-month low. The wide spread between the 10-year Treasury note and high-dividend payers, coupled with these stocks' reputation as a safer play, could tempt investors to move away from high growth names. A nuclear test from North Korea on Sunday rattled investors when markets opened on Tuesday after the extended holiday weekend, pushing the yield on benchmark 10-year Treasury notes to a 10-month low. "If rates can stay down here you will see people begin to return to those days of owning high dividend stocks," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. Investors typically prize high dividend players in a low rate, low growth environment, as they search for high yielding and … [Read more...] about High dividend stocks may find favor as market headwinds abound
By David Randall NEW YORK (Reuters) - A U.S. proposal to slash nicotine levels in cigarettes may have smoked some investors out of Altria Group Inc , whose Marlboro line is the top-selling U.S. brand, but long-term stockholders are staying put after decades of dividend hikes in August. Altria, informally known as "Big Mo" before its split from Phillip Morris International Inc in 2008, fell as much as 12 percent after the Federal Drug Administration on July 28 proposed cutting nicotine in cigarettes to "non-addictive" levels to encourage a shift to potentially less harmful e-cigarettes. Fund managers have said that might cut into cigarette sales, but tobacco companies have enough pricing power to weather declines and keep paying well-above market dividends. That means Altria's dividend, which has been raised every August since at least 1981, continues to look safe. Its shares are up 1.6 percent since the start of August, compared with a 0.4 percent gain in the benchmark … [Read more...] about Altria August dividend trade alive despite U.S. nicotine proposal
Investing in the stock market is easy as long as you have a strong stomach and the ability to ignore everything that is going on. Many people focus on momentum, following the dictum "the trend is you friend." If you are active and nimble, you can catch the moves up and down. But most individual investors miss the moves, buying high and selling low. A much better way to invest is to focus on valuation and sentiment. Over time, stocks sell based on valuation. If prices are low relative to earnings, cash flow, and alternative investments, stocks will move up. If prices are high, they will move down. This may sound simplistic, but most investors ignore valuation, preferring to keep betting on winners or chasing the market. Sentiment is also important, but to me it is a contrarian indicator. This means that I like to make long-term bets against the common view of the market. When most people are bullish, they have committed their money to stocks, so there is a little more money available to … [Read more...] about The best method for investing in the stock market is to focus on valuation and sentiment.
While a record number of companies cut their dividends in January, February and March, the widely watched Value Line Investment Survey has created a model portfolio composed solely of stocks with above-average dividends.In what may be a sign of the times, the dividend-oriented portfolio is unique in the 78-year history of Value Line, which also maintains model portfolios stressing growth.The new 20-stock portfolio — comprised of companies that pay dividends at least one percentage point more than the median stock Value Line follows — includes two New York corporate giants, drug maker Bristol-Myers Squibb, whose stock has a 6% yield, and Con Ed, which pays a 6.2% yield.Part of the reason yields are so high is that stocks declined sharply last year.The new portfolio uses several screening factors to avoid shares of companies that are at risk for going out of business or eliminating their dividends, an important process considering that a new Bank of America/Merrill Lynch … [Read more...] about New portfolio emphasizes stocks with strong, secure dividends
Who doesn't love Warren Buffett? One of the world's richest men wasn't born with a silver spoon in his mouth. He's just an investing genius who's been letting his fortune compound for decades. And he's humble about the whole experience to boot.So it makes sense that when investors are looking for a place to put their money, many start by evaluating what the Oracle of Omaha has done with his own money. Three of our Motley Fool investors are here to tell you what their favorite "Warren Buffett" stock is right now.Read on to find out why Markel (NYSE: MKL), Realty Income (NYSE: O), and Apple (NASDAQ: AAPL) are all worth your consideration. And know that in all three cases, our analysts have backed up their assertions by owning shares of the stock they're recommending.Steve Symington (Markel): Markel Corporation is often referred to as a "mini-Berkshire" for its striking similarities to the business Warren Buffett built but at less than a 30th of its size … [Read more...] about Buffett stocks picks: How to invest like the Oracle of Omaha
The short answer to this question is no. All retirees should have some exposure to stocks or stock-based funds in their portfolio. While they are indeed more volatile investments than bonds, for example, they are essential for achieving long-term growth, which you'll need if you want your retirement portfolio to keep pace with inflation.Having said that, it's a good idea to reduce your exposure to stocks as you get older. A rule of thumb I like to use is to subtract your age from 110 to determine the percentage your portfolio that should be in stocks. For example, if you're 65 years old, this formula suggests that your asset allocation ought to be roughly 45% stocks, with the rest in less-volatile fixed-income investments.Companies with rock-solid businesses and long histories of consistent dividend growth can work well for retirees; stalwarts such as Microsoft, ExxonMobil, and Johnson & Johnson immediately come to mind.Or, if you don't want to worry about company-specific … [Read more...] about Ask a Fool: Are stocks too risky for retirees to invest in?
Dividends don't directly affect the valuation of stock investments, as they aren't included in the calculation of most valuation metrics. However, a company's dividend activity or its dividend yield can certainly affect investor sentiment and move the price of the stock, thereby changing its valuation.First of all, a dividend doesn't have a direct impact on a stock's valuation. Common valuation metrics such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and most others are calculated in the same way regardless of whether a stock pays a dividend.Having said that, dividends can affect stock prices and valuations in several ways.For example, if a company raises its dividend higher than the market expects, it could be taken as a positive sign and boost the stock's price. Similarly, a dividend cut can be interpreted as a sign of trouble and could result in a depressed valuation.Dividends can also help to create a "price floor" in stocks that otherwise may not exist. For … [Read more...] about Ask a Fool: How do dividends affect stock valuation?