How To FORCE Warren Buffett To Pay You Dividends!
Warren Buffett is a famous American investor. He needs no introduction.
You’ve probably seen the big news already… He’s stepping down as the CEO of Berkshire Hathaway (ticker: BRK.B and BRK.A).
Say it ain’t so, Warren!
Buffett and Berkshire Hathaway have been attached at the hip for the last 60 years!
Who’ll replace the Oracle of Omaha?
Lucky for shareholders, Buffett has hand-selected Greg Abel to succeed him as CEO.
Abel has been with Berkshire Hathaway since his company, MidAmerican, was acquired in 2014. One big bonus to Mr Abel – he’s only 62 years old! That’s 32 years younger than Mr. Buffett!
What’s the changing of the guard have to do with dividends?
Warren Buffett absolutely loves dividends. Well, he loves receiving dividends.
He isn’t too keen on paying them.
Aside from Amazon (ticker: AMZN), Berkshire Hathaway is the largest American company NOT paying a dividend.
A lot of investors are asking if Berkshire Hathaway will start paying a dividend after Buffett leaves!?!?
Don’t hold your breath! Mr. Abel is hand picked, and shares a similar investing philosophy to Buffett.
Don’t fret. There’s a SECRET STRATEGY to collect dividends from Berkshire Hathaway…
Vista Shares, an ETF provider, launched a new ETF, the Target 15 Berkshire Select Income ETF (ticker: OMAH) in early March.
OMAH aims to generate a 15% dividend yield while holding Berkshire Hathaway, along with some of Buffett’s largest holdings.
What are some of Buffett’s favorites? Companies like Apple (ticker: AAPL), American Express (ticker: AXP), Verisign (ticker: VSGN), Kroger (ticker: KR), and Bank of America (ticker: BAC) are the top holdings in the fund.
There are plenty of others too.
There’s tons of information about OMAH on their website.
Here’s something really cool… Unlike most US companies who pay dividends every quarter, OMAH is going to pay dividends every single month!
How does OMAH do it?
OMAH sells call options on all of the stocks in the fund, including Berkshire Hathaway.
The premiums from those call options are paid out to holders of the ETF in dividends every month.
The strategy is called a covered call, which is very common in many high-yielding ETFs. Sneaky Right!
What’s the downside to a covered call strategy?
OMAH receives a premium to agree to sell their shares at a higher price.
If the stock price rises above the agreed-upon price, then OMAH doesn’t make any more money if the stock continues to rise.
Essentially, we give up some upside to get these dividends. Yields right now are about 15%…
What do you think about this secret strategy to collect monthly income from Warren Buffett?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Yield
