Warren Buffett is the most successful stock investor in the world. Warren Buffett’s first $20 million came from running a hedge-fund-like investment partnership in the 1950’s and 1960’s, and his earlier cigar-butt investments produced large gains initially. However, the lessons Warren Buffett learned from See’s Candies’ branding and the competitive advantages of Berkshire Insurance and newspaper companies led him from cigar-butts to the dividend investing that made him so astronomically wealthy.
5 Dividend Champions
Dividend investors can follow Warren Buffett’s example and purchase dividend growth stocks at attractive valuations. Here are some of the most widely-held dividend stocks to buy:
McDonald’s (MCD) is a dividend, champion having increased dividends for 38 years in a row now. McDonald’s has a 10-year average dividend growth rate of 22.8% per year. Currently, MCD stock is selling for 17 times forward earnings and yields 3.2%. Here’s an analysis of McDonald’s.
Walmart (WMT) has increased dividends for 41 years in a row. Walmart’s 10-year average dividend growth rate is 18% per year. Currently, WMT is selling for 14.8 times forward earnings and yields 2.5%. Read this analysis of Walmart.
Philip Morris International (PM) manufactures and sells cigarettes and other tobacco products. PM is another dividend champion and has increased dividends for six years in a row. Philip Morris has a five-year average dividend growth rate of 14% per year. PM stock is currently selling for 16.5 times forward earnings and yields 4.1%. Here’s my analysis of PM.
IBM (IBM) has increased dividends for 19 years in a row and has a 10-year average dividend growth rate of 19.4% per year. Currently, IBM stock is selling for 10.6 times forward earnings and yields 2.4%. Read my analysis of IBM.
Exxon Mobile (XOM) is our final dividend champion, which has increased dividends for 32 years in a row. Exxon has a 10-year average dividend growth rate of 9.6% per year. Currently, XOM stock is selling for 12.8 times forward earnings and yields 2.7%. Read my analysis of Exxon Mobil.
Full Disclosure: Long MCD, KO, WMT, PM
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