2 Dividend Bargains Warren Buffett Just Bought That Could Triple In 5 Years

Posted On August 18, 2022 7:48 am
By: Dividend Sensei

Warren Buffett’s company bought $47 billion worth of stocks in 2022, backing up the truck during the 11th worst six-month period in US market history.

Berkshire bought $777 million worth of this fast-growing anti-bubble financial that’s nearly 40% historically undervalued.

This company is expected to experience a modest fundamental decline in the coming recession, but at 5.5X earnings it’s a Buffett-style “fat pitch” that could nearly triple in five years.

This other blue-chip is a world leader in petrochemicals that’s trading at a 27% discount, 5.8X cash-adjusted earnings. It could nearly double in the next 2.5 years and triple in the next five.

Both recent Buffett buys represent two examples of what Joel Greenblatt called “buying above average quality at below-average prices”.

For anyone comfortable with their risk profiles and who wants to ride with the Oracle of Omaha and go bargain hunting, these are two reasonable and prudent deep-value dividend stocks to consider.

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Photo: “Fortune The Most Powerful Women 2013” by Fortune Live Media is licensed under CC BY-NC-ND

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.