Warren Buffett’s Berkshire Hathaway holds Bank of America (BAC) as the third-largest holding, worth $31 billion, showing confidence in the mega-bank’s future growth. Despite challenging economic conditions, BofA expects to grow net interest income by 5-7% annually until 2030 and achieve a return on equity comparable to rivals. BAC shares remain reasonably valued with a 2.1% dividend yield.
Chubb (CB) may be lesser-known but offers consistent performance and dividend growth, despite significant losses from natural disasters. The insurer’s actuaries effectively price products to cover predictable catastrophes, leading to consistent profitability over the past decade. Although slow-growing, Chubb has increased its dividend for 32 consecutive years.
Domino’s Pizza (DPZ) is a surprising Buffett pick, offering marketable meals in all economic environments. The company operates cost-effective pickup-and-delivery-only kitchens, expanding its store count and maintaining a respectable dividend yield of nearly 1.7%. Despite initial skepticism, Domino’s has proven to be a wise investment for Berkshire Hathaway.
Read more at Yahoo Finance: 3 Warren Buffett Stocks to Buy Hand Over Fist in December
