Investors looking for a no-brainer dividend stock to buy and hold for the long run should look at Warren Buffett and the banking industry. During the first two quarters of 2023, Buffett's holding company Berkshire Hathaway bought about 12.5 million shares of Capital One Financial (NYSE: COF).

Buffett will be the first to warn everyday investors that not every stock pick Berkshire makes works out as intended. That said, following Buffett's lead by acquiring Capital One stock could be a smart move. Despite rising about 25% over the past 12 months, the stock still looks like a bargain for investors willing to hold it over the long run.

Capital One turned a lot of heads recently with a $35 billion all-stock offer for Discovery Financial Services (NYSE: DFS). It's unclear if Berkshire Hathaway knew in advance that Capital One would try to acquire the smallest of the four main payment networks. That said, folks who keep an eye on the banking sector knew that Discover had been struggling and could be receptive to a buyout offer.

Continue reading

Source Fool.com