Warren Buffett continues to hold a dividend program for Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) . But there is no doubt that the legendary investor loves dividends. He even noted in his letter to shareholders last year that Berkshire made a huge $ 3.7 billion dividend in 2017.
Not all of Buffett's shares pay dividends, but many do. What are the best dividend shares in Buffett's portfolio for investors to consider buying in February? That's why (NASDAQ: AAPL) (19659005) Johnston and Johnson (NYSE: JNJ) and great pictures.
Warren Buffett has not always been a fan of technology stocks. But he's bitten to Apple in essence. Now he is the largest holding in Berkshire Hathaway's investment portfolio.
Apple pays a dividend, which currently yields 1.72%. Dividend dividends from the company have almost doubled since 2012. Apple should not have any trouble keeping the dividends. The payout ratio is super low at 23% and the company has over $ 86 billion of cash.
Some investors have recently fallen into Apple, but not Buffett. Omaha's Oracle does not seem to be too concerned about the company's back winds in China and its slower adoption for its latest iPhone, factors that have led Apple to cut its fourth-quarter earnings in January. Buffett continues to believe in the long-term value of the Apple ecosystem.
2. Johnson & Johnson
Buffett and Berkshire have Johnson & Johnson for a long time. However, he sells most of Berkshire's shares to the health giant in 2012. Since mid-2012, J & J has achieved a total return of nearly 140%.
A key part of the attractiveness of Johnson & Johnson is its dividend. The company has paid dividends every quarter for 56 consecutive years. At the moment, its dividend is 2.72%.
J & J faces some challenges. Stocks dropped by more than 10 percent in a day in December after Reuters published a report claiming that J & J may have known for years that its baby powder and other talc products have been contaminated with asbestos. The company's growth has also slowed down considerably with the top-selling Remicade medicines, struggling with bios competition. But J & J's strong cash flow should enable the company to make acquisitions and deals to keep it as a favorite for investors for a long time.
Berkshire Hathaway has just one Real Estate Investment Trust (REIT) – and it's Capital Capital. The company focuses on real estate where tenants are renting, requiring them to cover property taxes, building insurances and maintenance.
As a SIPC, Capital Capital has to distribute at least 90% of its taxable income to shareholders in the form of dividends. This is exactly what they have been doing for years, with a dividend already exceeding 4%.
Although many traders are struggling with the growth of e-commerce, Store Capital tenants are doing quite well in general. This is because REIT's customer base includes many businesses that are less susceptible to internet competition, including restaurants, cinemas, and health clubs. Shop Capital continues to increase its income and dividend – just what Buffett likes to see with shares.
If you are primarily looking for income, Store Capital is the best choice among these three Warren Buffett Dividend shares. He has the highest dividend yield now and probably will last a long time.
However, I think Apple is the best choice. The company's services are developing well. As high-speed 5G networks are becoming more widespread, Apple's sales of new iPhone should get a big boost. And the company's initiatives in the increased reality, self-driving cars and video streaming could provide significant new sources of revenue in the future.
It's no wonder Buffett has made Apple number one in the Berkshire portfolio.
Keith Speights owns Apple shares. Motley Fool owns shares and recommends Apple and Berkshire Hathaway (B shares). Motley Fool owns shares of Johnson & Johnson and has the following capabilities: a long January 2020 $ 150 for Apple and a short January 2020 $ 155 for Apple. The Motley Fool has a disclosure policy.