Recessions and bear markets are an unavoidable part of long-term investing. Economic and market downturns can’t be predicted and more will surely happen in the coming years and decades. But it’s important for investors to realize that while stock prices can be extremely volatile during such periods, dividends tend to be far less so.
These companies have dividend yields near 3% or higher, stable business models, solid balance sheets, and proven commitments to maintaining and growing their dividends in all manner of economic, industry, and interest rate conditions. Simply put, these dividend growth stocks are worthy candidates to consider as part of a diversified portfolio to help you sleep well at night during the next recession, confident that your passive income is as safe as it can be and likely to keep growing your wealth over time.
At then end of March 2018, Warren Buffett owned a total of 43 publicly-traded stocks. Interestingly enough, 33 of these holdings pay a dividend, and several of them are high dividend stocks with yields in excess of 4%. We analyzed each of Warren Buffett’s stock picks that pay a dividend, starting with his highest-yielding dividend stocks. For each of Buffett’s investments, we review what the business does and the potential reasons behind Berkshire Hathaway’s attraction to the company.