Below you can find a list of Warren Buffett’s 5 best long-term stocks to buy. For a more comprehensive list, please see 15 Best Long-Term Stocks to Buy Now.
5. Moody’s Corporation (NYSE: MCO)
The credit rating company Moody’s Corporation (NYSE: MCO) is among the favorite stocks of the legendary investor. Berkshire first initiated a position in a rating firm in fiscal 2000 by buying shares worth $499 million. After twenty years, Buffett’s investment in Moody’s is valued above $7.1 billion, accounting for 3.12% of the portfolio.
Shares of the rating firm soared almost 1000% in the past ten years. Moreover, Berkshire has been pocketing massive cash gains in the form of dividends. Moody’s Corporation currently offers an annual dividend of $2.24 per share, with average dividend growth of over 12% in the last five years. Here is what we recently wrote about MCO’s dividends:
Moody’s has been consistently growing its dividend payments over the past decade, from just $0.105 in 2010 to $0.56 in 2020 and there is plenty of room for further growth, with the company generating strong cash flow and having a payout ratio of just 22.4%. Whether or not incoming CEO Robert Fauber, who takes over at the beginning of 2021, makes some noise by taking an even more aggressive stance on the company’s dividend payments, future dividend growth appears promising.