Warren Buffett is ready to ride out 2022 with these dividend stocks — 3 picks to help you prioritize safety this year
Everyone wants to buy low and sell high. But with so many stocks already trading at or near their all-time peaks, the hope seems more like “buy high, sell higher.”
If you don’t feel confident in the market’s direction in 2022, remember: You don’t have to trade stocks to make money.
Each year, Warren Buffett collects billions of dollars just from dividends. In fact, the majority of Berkshire Hathaway’s holdings are now dividend stocks.
Here are three companies in the Oracle of Omaha’s collection that provide generous passive income — plus one unorthodox strategy to protect your portfolio from a stock market slide this year.
Verizon Communications (VZ)
With the human race glued ever closer to its smartphones, established wireless carriers like Verizon can dish out oversized dividends.
Right now, Verizon has a quarterly dividend rate of $0.64 per share, which translates to a generous annual yield of 4.9%.
Berkshire owned 158.8 million shares of Verizon at the end of Q3 2021, worth approximately $8.3 billion at the current price.
Verizon says its 4G LTE network covers 99% of the U.S. population, and more than 230 million people are already covered by its 5G network.
Yet despite being a household name, Verizon keeps attracting lots of new customers. For Q3 of 2021, the company reported 699,000 retail postpaid net additions for its wireless segment.
If you’re not happy with the size of your phone bill every month, buying a piece of Verizon is a cheeky way to get a fair amount of money back — especially if you’re investing for free.
Procter & Gamble (PG)
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As they say, “Past performance is no guarantee of future results.” But when it comes to paying dividends, a decades-long track record can be pretty reassuring.
Case in point: Procter & Gamble has increased its dividend every year for the past 65 years.
That streak is a testament to its entrenched position in the consumer staples market. P&G has a…