These 2 Warren Buffett Stocks Are Passive-Income-Generating Monsters
We all know that it takes money to make money, and Warren Buffett probably understands this old adage more than anyone. Directing available cash into assets that reliably generate passive income is how he turned a failing textile mill called Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) into a gigantic holding company that's now worth nearly $600 billion.
Berkshire Hathaway doesn't offer its shareholders a dividend, but investors seeking reliable income streams can ride on Buffett's coattails by mimicking some of his biggest bets. Here's what you want to know about two of the largest dividend-paying equity investments in Berkshire's portfolio.
Buffett began aggressively acquiring Chevron (NYSE: CVX) before Russia, formerly the world's largest oil exporter, incited severe sanctions against itself by invading Ukraine. Perhaps the first thing to know about oil producers is that, when the price of the commodity they produce rises, so do their cash flows. Now that oil prices are hovering over $115 per barrel, Chevron will have plenty of cash to dramatically raise a dividend that already offers a 3.8% yield at the moment.
Source Fool.com
