Dividend Growth Stocks That Attracted Buffett’s Attention
Warren Buffett is one of the most well-known investors in the world. He took over Berkshire Hathaway more than half a century ago in 1965. Over the years, Berkshire Hathaway evolved from a little-known textile company to one of the largest companies in the world. The phenomenal track record of this holding company’s investments suggests it might be wise to take a clear look at its stock holdings to see if any might be a good fit for your portfolio. Let’s check out two high-quality dividend stocks that Warren Buffett has long held in Berkshire Hathaway’s portfolio that are currently worth buying.
When it comes to high-quality dividend stocks we should mention Coca-Cola. It is the fourth-largest holding in Berkshire Hathaway’s portfolio, with a 9.2% ownership stake.
In February, the mega-gap beverage maker raised its quarterly dividend by 4.8% to $0.44 per share. This marked the 60th straight year that the stock upped its annual payout to the company’s shareholders.
The company has a portfolio of 21 billion-dollar brands that are sold all over the world. Coca-Cola’s iconic portfolio includes the eponymous Coca-Cola, Dasani bottled water, etc. In addition to the steady global population growth, this explains why analysts are forecasting 7.2% annual growth over the next five years.
Dividend growth stocks part two
As we already discussed what makes Coca-Cola so attractive to investors, we can move on to Johnson & Johnson. Both of them belong to the category of high-quality dividend stocks.
Don’t let Buffett’s company’s modest $59 million position in the stock fool you: Johnson & Johnson is arguably the best healthcare stock in the world.
Its 59 consecutive years of dividend growth is the longest stretch in all of healthcare. Johnson & Johnson has the potential to reach great results. As a reminder, it boasts one of the strongest existing drug portfolios among pharma stocks.