Value Investing News

The Dividend Aristocrats index measures the performance of S&P 500 index members that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. (Source: S&P)

Since its inception 20 years ago, the dividend aristocrat’s index has outperformed the S&P 500.

There have always been great companies that stand head-and-shoulders above their peers and the competition. Just as all great companies have have something in common, great dividend companies also have something in common.

Berkshire Hathaway (BRK-B) just posted its 13-F filing with the SEC, which lists changes in its stock positions.

A look at the third quarter changes made by Warren Buffett in the Berkshire Hathaway portfolio.

Out of 38 holdings in BRK-A’s portfolio 12 companies are dividend aristocrats, one is a dividend champion and three are dividend achievers. Only 5 of his holdings do not play any dividends at all.

Warren Buffett, the student of the now famous father or value investing Ben Graham, is the greatest stock investor of our times. He has built his flagship company, Berkshire Hathaway from a small mill to a diversified conglomerate with a total market cap of 175 billion dollars.