Here are three of Buffett’s favorite dividend stocks, each which is likely to beat the market in the coming years and worth considering for your income portfolio.
- Dividend growth stocks have proven to be one of the most effective long-term strategies in history.
- Thus, it’s no surprise that Warren Buffett’s Berkshire Hathaway has 14 of its top holdings in dividend stocks including like AAPL, BAC, and KO (43% of its portfolio).
- Today, all three companies have clear long-term growth plans and are trading at modest discounts to fair value.
- That translates into about 10+% long-term total return potential, which should prove superior to the S&P 500 in the coming years.
- That being said, all three companies face risks investors need to be comfortable with, including a potential recession that might be coming in 2020 or 2021.
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Source: Dividend Sensei