RJ Hamster
Warren Buffett Built His Fortune on Dividend Stocks. Berkshire…
“A dividend is a company writing you a check. Quarterly. Into your account. Whether the market is up, down, or sideways.”
Karim Rahemtulla, Co-Founder, Monument Traders Alliance

Dear Reader,
Warren Buffett built his fortune on dividend stocks. Berkshire never paid one.
That is not a contradiction. It is a lesson.
Buffett spent decades buying companies that paid reliable, growing dividends. Coca-Cola. American Express. Wells Fargo.
He collected billions in dividend checks while the rest of Wall Street was busy chasing buybacks and earnings-per-share tricks.
Earnings per share is a company’s total profit divided by the number of shares in existence – the number every analyst watches to judge whether a company is growing.
Berkshire paid a dividend exactly once. In 1967. Buffett has joked he must have been in the bathroom when that decision was made. He never paid another one.
Because Buffett believed he could reinvest that cash better than any shareholder could. And for sixty years, he was right.
Here is the part most investors miss. That logic only works if you can compound money at Buffett’s rate. Most of us cannot.
For the rest of us, a dividend check is the most honest thing a company can do with its profits. It lands in your account. You did not have to sell anything. You did not have to trust that management allocated capital wisely. You just got paid.
The Buyback Illusion
Big tech loves buybacks. Apple announced a $100 billion repurchase program. Alphabet authorized $70 billion. When a company buys back its own shares, it reduces the number of shares outstanding-the total number of shares in the market.
Fewer shares mean earnings per share go up. The stock looks cheaper on paper. Management announces they are returning value to shareholders.
But look at your account. Did anything show up?
IBM ran one of the most aggressive buyback programs in history for nearly a decade.
They kept reducing shares outstanding so aggressively that earnings per share looked great year after year. The stock went nowhere for ten years. Shareholders got financial engineering. They did not get paid.
A dividend is different. A dividend is a company writing you a check. Quarterly. Into your account. Whether the market is up, down, or sideways.
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What the Pullback Is Giving You
Right now, because the market has sold off, some of the most reliable dividend payers in the world are trading at prices that have pushed their yields to levels you have not seen in years.
Verizon is paying a 5.9% dividend yield right now. Nearly six cents in cash per year for every dollar you invest.
The company generates more than $21 billion in free cash flow annually – money left over after all expenses are paid. That dividend is not going anywhere.
Hormel has raised its dividend for over 50 consecutive years. Not 50 years of paying a dividend. Fifty years of raising it. Through recessions, pandemics, and wars.
These are not risky bets. These are businesses that have been writing checks to shareholders longer than most investors have been alive. The pullback has put them on sale.![]()
YOUR ACTION PLAN
The market is headline-driven right now. Every morning brings four new reasons to panic or four new reasons to buy. Nobody knows how this resolves or when.
What I do know is this.
While the market tries to figure itself out, parking money in quality income plays is the right move. You get paid while you wait. Your cost basis stays low. And when the recovery comes, you are already positioned.
That is exactly one of the strategies we utilize inside the War Room.
If you want to see the specific names we are buying and the income strategies we are using to generate returns that make a 5% dividend look modest, join us.Want more content like this?
INSIGHTS YOU MAY HAVE MISSED
Warren Buffett Built His Fortune on Dividend Stocks. Berkshire Never Paid One.
How to Stay Sane When The Headlines Turn Sour
I Called $65 to $100 in 17 Days. Here Is What It Means for Your Portfolio.
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