Why Warren Buffett Loves This High Dividend Paying Sector
Vložit
- čas přidán 5. 02. 2024
- Most people who enjoy tracking Warren Buffet’s investments know that the Oracle of Omaha is a major fan of dividend-paying investments. The dividend holdings held by Berkshire Hathaway have played a big role in the overall returns to the company for many decades. Of the 49 stocks in Buffett’s portfolio, 31 currently pay dividends, and he’s estimated to have collected more than six billion dollars in dividends in 2023. This number has continued to grow over time, as Buffett collected just above $6 billion in dividends in 2022, $5.06 billion in 2021, and $4.89 billion in 2020. It’s important to know that Buffet's love of dividends isn’t new, but that he’s been a fan of dividend-paying investments for decades.
According to Rich Duprey from Investor Palace, since becoming CEO of Berkshire Hathaway in 1965, Warren Buffett has generated 3.7 million percent returns for investors. In comparison, the S&P 500 returned 24.7 thousand percent. Although both are really impressive, it’s obvious that Warren has been the overall better investor by a significant amount. It seems clear that he’s very much aware of the power of compounding dividends and their importance when it comes to returns. I’ve shown this graph before, which shows the overall returns of the S&P 500 when dividends were taken into consideration as opposed to not being factored in. Over time, dividend-paying investments in S&P have been a significant source of total shareholder returns.
Through the years, Warren's has held a lot of dividend-paying stocks, including some that are specifically designed to pay high amounts of dividends, such as real estate investment trusts. In 2017, he invested in Store Capital, picking up about 9.8% of all outstanding shares. This stock was actually my second favorite REIT before it was acquired and delisted in early 2023. If you include the holdings held by New England Asset Management, a subsidiary of Berkshire Hathaway, they hold other high-yielding stocks, including business development companies. But Warren recently made headlines when he went on a $600 million dollar buying spree into a sector that’s known for paying large dividends.
/ dividendbull
#dividendinvesting #dividends #dividendstocks
Warren Buffett has mastered what patience looks like. He has stuck to the markets, having a long term view on the markets. This is what I'm struggling to do, trying to learn how to not react to market news about inflation and all. I have currently set aside about $553k to put in the market now that prices are down. Any ideas?
It takes some gut to really remain in the market despite downturns and all. So just find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.
I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
He likes to collect them but doesn’t like to pay them.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Marina Carolina Nice is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
6 billion in dividends, not too shabby
Yeah, it’s great for him but Berkshire Hathaway doesn’t share any of it
They do but in terms of growth.
@@MuzixMakerMeaning you have to sell off equity instead of keeping equity and getting paid.
As a shareholder I can tell you that he does better than pay out a dividend. He reinvests the dividends back into the company and puts a floor on the intrinsic value so if the shares drop below that level, he has the cash to buy back shares, so all shareholders profit
@@HamiltonRbCool story, bro. My dividends paid for my vacation and I still have my equity.
@@tonycrabtree3416 it’s for growth not income
What div equities do you hold?
Is AY something for presentation, too? Would be great to see your evaluation.
Great video. Thanks DB
Hey you forgot the most popular for div investing….CEFs??? UTG, UTF. And most MLPs have become ETFs now…
This stock vlog was very helpful. I will try to research these stocks and make my investment decision. Greetings from Plano, Texas, United States.
OXY has been just about one of the worst buys in that sector you could have made over the last 2 years if you wanted a good return and a good dividend, Buffet took it all. The only time to buy was immediately after the crash and Buffet's original deal.
good explanation
I much prefer ETFs instead of individual stocks so I don't get hit from the fall of one individual stock. Take DVN; lost a lot of money with it. Can't afford losses for the little guy like me. Also monthly dividends might be better for the 'close to retirement' person such as myself. If ever.
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Karen Cosmann focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional.
You trade with Karen Cosmann too? Wow that woman has been a blessing to me and my family.
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
she's mostly on Telegrams, using the user name
COSMANN23 💯 ..that's it
EPD is a MLP as well
BSM is my favorite royalty play (royalty set up as a limited partnership). Completely different from mid-stream companies like Endbrige and Energy Tranfer partnerships. They own millions of acreage in all the oil producing basins in the US and a very stable high dividend.
OXY has a good balance sheet and pays within its EPS.
EPD is also an MLP! There are very important distinctions that investors need to take into account before investing.
For example:
1. Dividends vs Distributions
2. Tax Deferred Status
3. Taxable brokerage vs IRA implications
DB has covered this with EPD.
@@tonycrabtree3416 But he missed it in this video.
Any chance you would ever cover CHKR, or give an opinion about it, I know it's an OTC stock but they still pay a dividend. Thank you for such great content.
Bought Energy Transfer (ET) a few years ago without realizing it’s an MLP. Tbh it’s been a little annoying because you get a different type of tax form than you would get from your typical corporation and it takes longer to input the numbers at tax time. But the current 9% distribution you get gives you a tax advantage. If you don’t have a lot of it, it’s annoying. But if you have a lot of shares you won’t mind the extra paperwork. Thankfully, I’m starting to get to the point where I find it less annoying.
I had 750 shares of ET that I bought for ~$8.50. It wasn't worth the inconvenience at tax times: 1. Paid more for time preparation, and 2. Had to wait until March to file. So I decided to sell last August for a nice profits.
I may decide to get back into the sector if oil tanks to under $40/barrel again. In that case I would look at MLPA, a pipeline ETF.
@@hansschotterradler3772 your timing was better since you probably bought during the pandemic while I bought pre pandemic. I had to wait and dollar cost average before getting back to break even. I’ve just held on to it since then. Yes that MLPA ETF seems like a good option. The expense ratio is pretty high for global x ETFs though and the dividend/distribution isn’t as high as Energy Transfer. But good for diversification.
6 billion in divs. I wonder if that includes the divs from the tons of t-bills he buys every Monday. I know I've enjoyed my 14 months of purchases. Higher for longer, yeah baby.
When it comes to Utilities I like Nee personally, oil/gas pick would be Enbridge. Always look forward to your videos and hearing your thoughts and opinions. (:
NEE has a bad balance sheet.
NEE has been a big downer while NEP has been doing incredible over the last year. I personally avoid both.
@@HermannTheGreat NEP pays more than its EPS.
Yet BRK.A or B doesn't pay a dividend.
I don’t want to pick stocks. What ETFs would you buy if you were 30 years old and wanted to build a good long term portfolio for retirement and include dividends ETFs
I would avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
We're supposed to be in a new Bull market. Ha. As good as it gets.
I never heard of these types of stocks before...
🎉
Oxy fw div 1,25%what is this about ?
Buffet is a preferred shareholder, he's getting something over 5% dividend while ordinary shareholders get just over 1%. That's the main reason he likes it.
OXY pays less than 2%.
Buffet is getting over 5% as a preferred shareholder
Duke energy is the only energy company we invest in 🤷♂️🙋♂️
im surprised you didn't mention HESM
HESM has a bad balance sheet and pays outs more than its EPS and is an LP. It is like a triple problem child.
It's official. Dividend Bull has gone full AI generated thumbnail.
how do we know this script and voice wasnt ai too?
@@laCruz40oz it sounds like it is
Who cares? The information is valuable. Doesn't matter if it comes from Ai, person or Alvin and the Chipmunks. Thats all you took away from this?
Wealth of the wicked is layed up for me they shall gather it up but I shall put it on he that by usery and Unjust gain increaset his substance he shall gather it up for me because I pity the poor he
Companies that pays 1 to 6 % dividend should not bother and just keep the money. I can get up 20% off just buying sale items.
What is the best strategy for a beginner who know nothing about trading or investment?
Only invest in index etfs
You need only 1 invest VOO with DCA (monthly)
Take your time and seek out knowledge. Find a trusted person to start an account for you and learn about the market. Don't rush, lots to digest. And Crypto is not the place to go, but you'll find that out.
@@carlosarodriguez7266 VYM!
Do not get scammed by the various fake "financial advisors" that troll these videos. If anyone only accepts cryptocurrency to open an account then you can be certain that they are a scammer despite their technobabble double talk. Do not be deceived by their faked returns and multiple fake accounts stating that they have made money.
Just some corrections to consider for your video:
1.) Master Limited Partners (MLP) is just a class of companies that have a different organizational structure from your typical company and therefore have different tax considerations. For instance BEP you mentioned as a yieldco is a MLP and has a non-MLP version that trades under BEPC. Before buying any MLP research the tax considerations of doing so. @whereintheworld7619 in the comments lists some of them, but that's just a start. Do your research.
2.) Most but not all MLPs are midstream oil/gas transportation companies and could be listed there in your video. In fact EPD that you listed is a MLP. It can be a bit confusing so research into what you are buying is very important.
Well known MLP midstream pipeline companies include: EPD, ET, MPLX, and PAA (PAGP is the non-MLP form of the same company).
Well known non-MLP midstream pipeline companies include: ENB, TRP, and PBA (Canadian companies that have withholding taxes if held in a taxable account [per tax treaty there's no withholding tax if held in a 401k or IRA]), OKE, PAGP, KMI, and WMB.
Above is all just my own opinion and not investment advice. You should do your own research.
First 🫱🏼🫲🏽
I fail to understand the juvenile mindset that considers being first to comment on a video as some sort of accomplishment. But I suppose life is simple for those who still live in their parents' basement 😋