Warren Buffett’s Top 5 Dividend Stocks

Pay close attention and discover the best dividend stocks from Warren Buffett that earn high returns.

The billionaire Warren Buffett is quite possibly the most successful investor that the world has ever known. The first $20 million made by Warren Buffett came from running an investment partnership similar to a hedge fund in the 1950s and 1960s. Initially, his earliest investments produced substantially large gains. But the lessons that Warren Buffett learned from buying companies like See’s Candy, and the competitive advantage of Berkshire Insurance and purchasing newspaper companies has led him into the dividend investing that made him incredibly wealthy.

Top 5 Warren Buffett Dividend Stocks

Dividend investors, follow the example of the Oracle of Omaha and buy dividend growth stocks at attractive valuations. Here are five of the most widely held dividend stocks to purchase:

Walmart – this company has increased its dividend for the last 41 years in a row. The ten-year Walmart average dividend growth rate is 18% per year. At the current time, Walmart sells for 14.8 times forward earnings. It also yields 2.5%.

IBM – this technology company has increased its dividend for the last 19 years, year after year, and its ten-year dividend growth rate average is 19.4% each year. At the current time, IBM shares are selling for 10.6 times forward earnings. It also yields 2.4%.

Exxon Mobil – this oil behemoth and big-time dividend champion has increased its dividend for the last 32 years each year. The oil giant’s ten-year dividend growth rate averages 9.6% per year. At this time, Exxon Mobil stock sells for 12.8 times forward earnings. It yields 2.7%.

Philip Morris International – the cigarette manufacturer is another great dividend stock to consider. It has increased its dividend for the past six years in a row. The five-year growth rate for the dividend is 14% each year. Philip Morris stock currently sells for 16.5 times forward earnings. It has a yield of 4.1%.

McDonald’s – this dividend giant has increased its dividend for the last 38 years, and has done so every year consistently. The ten-year dividend growth rate average for McDonald’s is 22.8% each year. McDonald’s stock sells for 17 times forward earnings and has a yield of 3.2%.

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