💸 Warren Buffett's Dividends
Every Wednesday it’s Dividend Day.
In this series, I will teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ Warren Buffett’s Dividends
$4.5 billion. That’s how much Warren Buffett collected in dividends last year.
If you ask me, he owns 2 attractive Dividend Aristocrats right now:
- Coca-Cola
- Chevron
Source: Carbonfinance
We’ll look at all 8 of these companies in Saturday’s article.
2️⃣ $25 per second
Almost $25. That’s how much Coca-Cola pays Warren Buffett in dividends…
… Every second!
Owning dividend stocks can be very rewarding.
Source: carbonfinance
3️⃣ A dividend quote
Buffett likes companies that pay a dividend, but he also likes growth.
Management has to decide the best way to allocate capital.
"If managers can't think of anything else to do with their money they should pay dividends. If they have good places to invest it, that's much better." - Philip Carret
4️⃣ A dividend primer
Middlefield is a private Canadian company specializing in income-producing assets.
Here’s their Dividend Investing Primer:
5️⃣ Example of a dividend stock
A Dividend King is a company that has increased its dividend for the past 50 (!) years.
There are only 53 of them in the market.
W.W. Grainger is one of them. It’s a company that sells maintenance, repair, and operating supplies to businesses.
Examples include tools, industrial parts, cleaning supplies, and safety equipment.
- Profit Margin: 11%
- Forward PE: 23.5x
- Dividend Yield: 0.86%
- Payout Ratio: 20.7%
Look at how steadily they’ve increased the dividend payments.
This is something we love to see!
That’s it for today
In case you missed it:
Used sources
- Interactive Brokers: Portfolio data and executing all transactions
- Finchat: Financial data