Stocks

3 Dividend Growth Stocks Championed by Warren Buffett for Long-Term Investment

Published December 31, 2023

Investors across the globe perennially seek strategies to secure their finances and ensure a growing income stream. Taking a page from Warren Buffett’s investment philosophy, focusing on dividend growth stocks is a prudent approach to achieve this. Buffett's track record of picking companies with robust and increasing dividends has spurred many to consider a similar strategy for their portfolios. Among the many options, three stocks stand out as worthy of buying now and holding indefinitely: Apple Inc. AAPL, Mastercard Incorporated MA, and Visa Inc. V. Each of these companies is well-established, operates worldwide, and has a history of delivering reliable and increasing returns to shareholders.

Apple Inc. AAPL

Apple Inc., the world's leading technology behemoth, nestled at the core of innovation, has expanded its product lines from personal computers to include smartphones and a diversified range of electronic devices and services. With an awe-inspiring revenue totalling $274.5 billion in 2020, Apple stands as the planet's most valuable company as of early 2021. Sustaining its rank as the fourth-largest PC vendor and smartphone manufacturer globally, it's a formidable player among the Big Five of the American tech industry. The company's continuous growth and its reputation for regular, increasing dividends make AAPL a solid pick for a 'buy and hold forever' strategy.

Mastercard Incorporated MA

Another exemplar of consistent dividend growth is Mastercard Incorporated. As a titan in the financial services sector, Mastercard has been facilitating seamless transactions worldwide. Since its IPO in 2006, the company has been an emblem of trust and consistency, serving millions with its payment processing services. The headquarters in New York state are a beacon of its influential presence in the financial world. The unwavering expansion and its pivot towards digital payment innovations ensure that MA remains a compelling stock for long-term investors seeking dividend growth.

Visa Inc. V

The financial services powerhouse Visa Inc. is recognized for its ubiquitous Visa-branded credit, debit, and prepaid cards. This Californian-headquartered company commands an enormous share of the global electronic funds transfers market. Much like Mastercard, Visa has cultivated a robust infrastructure that empowers seamless financial transactions internationally, cementing its status as one of the most influential and valuable companies in the world. The sturdy financials and its pattern of rewarding investors with growing dividends make V an essential holding for dividend growth investors.

investment, dividend, growth