by Greg Patrick, Co-Founder of DailyTradeAlert.com and DividendsAndIncome.com
Through his holding company Berkshire Hathaway, legendary investor Warren Buffett just bought another 3.3 million shares of a stock that:
- pays a GROWING dividend (increases for 14 years in a row)
- pays a SAFE dividend (79 out of 100 from Simply Safe Dividends)
- pays a dividend with a growth rate that’s ACCELERATING (8.9% increase last time), and
- pays a dividend that works out to an ABOVE AVERAGE yield (3.2%… and we can play it for 11.4%).
Even better, for income investors such as myself who are also focused on value, this stock looks to be cheap and trading at a discounted price.
The stock I’m talking about is Bristol-Myers Squibb (BMY). Chuck Carnevale of F.A.S.T. Graphs, aka “Mr. Valuation”, recently put together a fantastic analysis on this stock. He came to the conclusion that BMY looks significantly undervalued at recent prices.
Jason Fieber, one of our residential dividend growth investing experts, covered this stock in January, and it was his conclusion at the time that the stock was 15% undervalued (and it still is at current prices).
And then in mid-February we found at that Warren Buffett just bought another 3.3 million shares of this stock.
Well, I ended up making a move on this stock myself. Last week I invested over $10,000 into this stock for my long-term dividend growth portfolio.
As excited as I am about that investment and the future dividend it should provide, I’m equally excited about the “Income Trade” I’m going to be walking you through today with this stock.
In short, right now we have an opportunity to capture a safe, double-digit yield of 11.4% from BMY over the next 11 months. That’s TRIPLE the stock’s “normal” income (if we’re looking at dividends)… and in less time (11 months vs. 12 months).
At the same time we also have an opportunity to buy this stock for LESS than what Buffett just paid for it. I’m jumping on the opportunity, as I’ll explain in today’s video.
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