Dividend stocks may be the best way to follow Warren Buffett's famous rules:
● Rule No. 1: Never lose money.
● Rule No. 2: Never forget rule No. 1.
But that shouldn't be surprising. Playing the part of the investor whose aim is to never lose money is to study businesses that rule boring industries, make real products, and earn heaps of cash flow. More often than not, these types of stocks also offer generous dividend yields.
Consider Buffett's portfolio. Better than half the stocks held by
Berkshire Hathaway (NYSE:
BRK-A) (NYSE:
BRK-B) yield more dividends than the S&P 500 average of 1.67%. Here's a sampling:
Company Current Dividend Yield
U.S. Bancorp (NYSE:
USB) 5.00%
General Electric (NYSE:
GE) 3.00%
