3 Reasons Buffett Should Buy This 6.7% Yielding Dividend Aristocrat And So Should You

3 Reasons Buffett Should Buy This 6.7% Yielding Dividend Aristocrat And So Should You

Posted On August 19, 2021 3:48 am

Buffett is famous for making countless investors millionaires, but he hasn’t made a needle-moving acquisition in six years.

BRK’s $144 billion mountain of cash can’t be eliminated via buybacks, Berkshire would need to buy a massive blue-chip to achieve long-term double-digit growth.

This 6.7% yielding blue-chip represents an $80 billion titan and the green energy leader of its industry.

It has a $37 billion growth backlog that it can fund on its own. But it also has a $9.6 trillion growth opportunity in offshore wind that could double BRK’s growth rate.

Today, this 6.7% yielding dividend aristocrat is 14% undervalued, and paying even a modest premium would still represent a “wonderful company at a fair price.” Its management says it can deliver about 13% CAGR long-term returns, which are slightly better than the 12% CAGR long-term returns analysts expect from BRK.

That’s why I’ve invested over $65,000 into this 6.7% yielding rich retirement blue-chip and you might want to consider buying it just in case Buffett doesn’t.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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