Should You Follow Warren Buffett into Dividend Stocks?
Warren Buffett is known for his investment success. He's led Berkshire Hathaway to a compounded annual gain of nearly 20% over the past 57 years. That's compared to a gain of 9.9% for the S&P 500 Index. Buffett's strategy includes many key elements. And one of those is buying stocks that reward shareholders through dividend payments.
Dividends bring you income every year -- no matter what the particular stock or the general market is doing. This is great all of the time, but it's especially welcome during tough market times. Should you follow Buffett's lead and add dividend stocks to your portfolio? Let's find out.
First, let's take a closer look at how Buffett has benefited from dividends. He mentioned two examples in his recent letter to Berkshire Hathaway shareholders: Coca-Cola (NYSE: KO) and American Express (NYSE: AXP). Buffett completed purchases of these stocks in the mid-1990s and has held on since.
Source Fool.com
