Warren Buffett: Stock Dividend

Warren Buffett has a talent in picking good stocks for long-term gains. A stock dividend is a payment made in the form of additional shares if liquid cash is not readily available, then stock is distributed. A 5% stock dividend gives existing investors additional shares of company stock for every 20 shares they already own. Buffett has 8 favorite stocks starting with Wells Fargo and Co., that Buffett has 482.5 million shares, of Wells Fargo worth $29.2 billion, purchased at $24.53 a share, other favorite stocks include Kraft Heinz, Bank of America Corp, Coca-Cola Co., American Express Company, Phillips 66, and U.S. Bancorp

Buffett wants to keep Berkshire’s Wells Fargo stake below 10% ownership of the company only because it would turn into scrutiny to Berkshire if ownership goes any higher, or why Berkshire owns 9.9 percent stake. Apple is not Buffett’s top holding because a total of 166.7 million shares, owned, or 3.3 percent ownership of Apple. Buffett paid $125.73 for Apple stock, since Buffett wanted to acquire a soon to be $1 trillion company. Kraft Heinz is number three on the list that is priced at $30.11 per share. Berkshire acquired 8 percent stake in Kraft foods, in the year 2008. Berkshire and Capital announced a $23 million buyout of Heinz in February 2013, with Berkshire originally the majority owner of Kraft Heinz, stake at 26.7% as of February 26th, 2018.

Bank of America Corp had $5 billion originally invested by Buffett, in 2011. By Mid-2017, Bank of America shares were sold at $7.15 each, with Berkshire only earning 6.8% of the bank. Next comes the Coca-Cola Co, of which Berkshire owns 400 million shares of Coca-Cola stock that is worth $18.3 billion. The average price the stock was bought for was $3.24 per share, normally trading at $44 per share.

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