By: Dividend Sensei
Berkshire is one of the greatest companies in history, delivering almost 21% annual returns for 56 years. In the last 36 years, it’s delivered 74X inflation-adjusted returns.
In the future, analysts expect about 11% returns from BRK, 1% more than the S&P 500, courtesy of its incredible portfolio, cash generation, and infrastructure investment opportunities.
However, when it comes to safety and quality, yield, valuation, and long-term return potential, this 5% yielding blue-chip is the superior investment today.
Rating agencies consider it the world’s best insurance company, with legendary risk management so strong it hasn’t missed a dividend payment in 132 years.
Most investors would do well owning both legendary companies in their diversified and prudently risk-managed portfolios.
However, today this 5% yielding Berkshire alternative offers 2X the 5-year consensus return potential of BRK and is the far better buy.