Category: Dividends

Unveiling Warren Buffett’s Time-Tested High-Yield Stocks

by Fred Fuld III

Warren Buffett, renowned as the Oracle of Omaha, is celebrated for his long-term investment strategy, which often centers around high-quality, dividend-paying stocks in the Berkshire Hathaway (BRK-A) (BRK-B) portfolio. While Buffett’s portfolio encompasses a diverse array of investments, several high-yield stocks have consistently stood out. Listed below are three of his highest yielding stocks in his portfolio. 

Kraft Heinz Company (KHC)

The dividend yield for The Kraft Heinz Company (KHC) stands at 4.59%. With a payout ratio of 68.83%, close to 69% of KHC’s earnings are disbursed to shareholders through dividends. KHC’s annual dividend payout amounts to $1.60 per share. The Price to Book ratio is an excellent 0.86, and the Price to Sales ratio is right in the mid range at 1.71, but the Price to Earnings Growth ratio (PEG ratio) is on the high side at 3.55. The stock makes up 3.47% of Berkshire’s total portfolio.

The ex-dividend date for The Kraft Heinz Company (KHC) is March 7, 2024. Investors purchasing shares on or after this date will not qualify for the upcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution planned for March 29, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Coca-Cola Company (KO)

The dividend yield for The Coca-Cola Company (KO) currently stands at 3.26%. With a payout ratio of 74.22%, approximately three-quarters of KO’s earnings are allocated to shareholders in the form of dividends. Coke’s annual dividend payout amounts to $1.94 per share. The Price to Book ratio is on the very high side at 9.88. The Price to Sales ratio is also very high at 5.56, along with the Price to Earnings Growth ratio (PEG ratio) at 3.88. The stock currently makes up 6.79% of Warren Buffett’s total portfolio.

The ex-dividend date for The Coca-Cola Company (KO) is March 14, 2024. Investors purchasing shares on or after this date will not qualify for the forthcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution scheduled for April 1, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Chevron Corporation (CVX)

The dividend yield for Chevron Corporation (CVX) currently sits at 4.35%. CVX has a payout ratio of 53.05%. Slightly more than half of CVX’s earnings are allocated to shareholders in the form of dividends The annual dividend payout amounts to a whopping $6.52 per share. The Price to Book ratio is a reasonable 1.74. The Price to Sales ratio is right in the mid range at 1.41, but the Price to Earnings Growth ratio (PEG ratio) is on the low side at an excellent 0.81. The company represents 5.41% of Berkshire Hathaway’s total portfolio.

The ex-dividend date for Chevron Corporation (CVX) is February 15, 2024. Investors purchasing shares on or after this date will not qualify for the upcoming dividend payment. The company follows a quarterly dividend payment schedule, with the next distribution planned for March 11, 2024. 

CLICK HERE FOR DIVIDEND HISTORY

Overall, high-yield stocks play a crucial role in income generation, portfolio diversification, and long-term wealth accumulation strategies, making them important considerations for investors with varying financial goals and risk tolerances.

Remember, as a rule of thumb, if the P/B ratio, the P/S ratio, and the PEG ratio, is below one, that is good, if it is between one and two is considered average, and above two, it may be on the high side. Some of these ratios may be irrelevant for high growth stocks.

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Stocks Going Ex Dividend in March 2024

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

H&R Block, Inc. (HRB)3/4/20240.322.61%
The Kraft Heinz Company (KHC)3/7/20240.404.45%
UnitedHealth Group Incorporated (UNH)3/8/20241.881.43%
Coca-Cola Company (KO)3/14/20240.4853.20%
Mercer International Inc. (MERC)3/26/20240.0753.53%
Pacific Gas & Electric Co. (PCG)3/27/20240.010.12%
State Street Corporation (STT)3/28/20240.693.79%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

Stocks Going Ex Dividend in February 2024

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Wells Fargo & Company (WFC)2/1/20240.352.78%
MetLife, Inc. (MET)2/5/20240.522.93%
Starbucks Corporation (SBUX)2/8/20240.572.46%
Penske Automotive Group, Inc. (PAG)2/14/20240.871.98%
Amgen Inc. (AMGN)2/15/20242.252.89%
Johnson & Johnson (JNJ)2/16/20241.192.98%
Lockheed Martin Corporation (LMT)2/29/20243.152.93%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

Top Stocks That Just Increased Their Dividends

by Fred Fuld III

Investors like stocks that have increased their dividend.

There are several reasons why investors tend to favor stocks that have had a dividend increase:

Increased income: A dividend increase means a larger payout to shareholders, providing a more immediate and reliable source of income. This is particularly attractive to investors seeking regular cash flow, such as retirees or those living off their portfolios.

Signal of confidence: A dividend increase is often seen as a signal of a company’s strong financial health and healthy long-term prospects. This suggests the company is confident in its ability to generate sustained profitability and share its success with shareholders. This confidence can boost investor sentiment and attract new investors seeking stable and growing income streams.

Growth potential: While not always the case, a dividend increase can also point to future growth potential. It can indicate that the company has excess cash and sees limited opportunities for reinvestment within the business. This suggests the company may be exploring new lines of business or initiatives that could unlock future growth, further increasing shareholder value.

Risk reduction: Dividend-paying stocks tend to be less volatile than their non-dividend counterparts. This is because they attract investors seeking income and stability, leading to a more consistent investor base. A dividend increase can further solidify this perception of stability, making the stock a less risky investment in the eyes of some investors.

Market psychology: A dividend increase can be seen as a positive momentum indicator, often sparking increased demand for the stock as investors try to capitalize on the perceived trend of future growth and income. This increased demand can drive up the stock price, adding to the potential returns for investors.

It’s important to note that not all dividend increases are created equal. Investors should also consider:

  • The size of the increase: A large increase is generally more favorable than a small one.
  • The company’s dividend history: A consistent track record of dividend increases is more reassuring than a one-time bump.
  • The reason for the increase: Understanding the company’s rationale behind the increase (e.g., strong earnings,increased cash flow) can provide context.
  • Overall financial health: While a dividend increase is positive, it shouldn’t come at the expense of the company’s financial stability.

The following is a list of stocks that have increased their dividends during the last week.

Stock% IncreaseYield
Fastenal (FAST)11%2.23%
Royalty Pharma plc (RPRX)5%2.87%
ONEOK, Inc. (OKE)3.7%5.71%
Penske Automotive Group, Inc. (PAG)10%1.97%
 Independent Bank Corporation (IBCP)4%3.46%
NRG Energy, Inc. (NRG)8%3.09%
Franklin Electric Co., Inc. (FELE)11%1.04%

One of the stocks on the list, ONEOK (OKE), not only increased their dividend by 3.7% but also authorized a $2 billion Share Repurchase Program. The company is a major American energy infrastructure company, connecting key gas supply and demand centers through its vast pipeline network, primarily focused on natural gas liquids. The stock trades at 12.7 times trailing earnings and yields 5.71%.

Fastenal, which distributes fasteners and tools, and operates hardware stores, had one of the biggest increases in its dividend payout, increasing by 11%. The stock has a price to earnings ratio of 34 and yields 2.23%. 

Let’s hope that higher dividends turn into higher stock prices.

Disclosure: Author didn’t own any of the above at the time the article was written.