Buffett's Buying This CHEAP Stock. Me too! (11.4% Yield?!)

Through his holding company Berkshire Hathaway, legendary investor Warren Buffett just bought another 3.3 million shares of a stock that:

1) pays a GROWING dividend (increases for 14 years in a row)
2) pays a SAFE dividend (79 out of 100 from Simply Safe Dividends)
3) pays a dividend with a growth rate that's ACCELERATING (8.9% increase last time), and
4) pays a dividend that works out to an ABOVE AVERAGE yield (3.2%... and we can play it for 11.4%).

Even better, for income investors such as myself who are also focused on value, this stock looks to be cheap and trading at a discounted price. The stock I'm talking about is Bristol-Myers Squibb (BMY).

And then just last week we found at that Warren Buffett just bought another 3.3 million shares of this stock.

Well, I ended up making a move on this stock myself. Last week I invested over $10,000 into this stock for my long-term dividend growth portfolio.

As excited as I am about that investment and the future dividend it should provide, I'm equally excited about the "Income Trade" '’m going to be walking you through today with this stock.

In short, right now we have an opportunity to capture a safe, double-digit yield of 11.4% from BMY over the next 11 months. That's TRIPLE the stock's "normal" income (if we're looking at dividends)... and in less time (11 months vs. 12 months).

At the same time we also have an opportunity to buy this stock for LESS than what Buffett just paid for it. I'm jumping on the opportunity, as I’ll explain in today's video.

Please note: I’m not a registered financial advisor and the ideas I talk about in these videos aren’t specific recommendations for you as an individual. Everyone has different financial situations, risk tolerance, goals, time frames, etc. You should also be aware that some of the trade details (specifically stock prices and options premiums) are certain to change from the time I place my trade or do my research, to the time I film the video, to the time it gets edited, to the time it gets published… and to the time you’re watching this video! So PLEASE, don’t attempt to make this trade yourself without first doing your own due diligence and research.

#BestStocksToBuyNow #SellingOptions #WarrenBuffett

LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Greg is not a licensed financial advisor, tax professional, or stock broker and he does not purport to be.

[naseerahmed]

great video @ . Can you please suggest some other stocks with 10-15% yield

[greggarcia]

Lke know more stocks and how get started like to save retirement account thanks bro learned a lot.

[eugenegee]

I have done the same thing with other aristocrat dividend stocks but not for that long a time period. In my case, the puts all expired worthless. Your explanation of the strategy is a much better explanation than I could do. If the stock price goes up a lot, the option price may drop a lot. You could then buy your put option at a much lower price. The advantage of this is that it would free up the $7000 for other uses. Your return could be less than if you held the put option until it expired in January. However, the $7000 could then be held for another put option in a stock. This could possibly increase your annual return to over 11%.

[coocoocachooglin]

Looks like BMY traded later for a high of ~81 and a low of ~49 where it sits now, how's it going?

[somchai]

Missed on earnings April 30th. Getting close to buy zone.

[billyjohnson]

What happened you don’t have any guest videos anymore. Did you not pay them?

[jakedougherty]

How do we know what buffet is buying and selling?

[kr]

Great video, thanks. I have a question, as I'm very new to options. I'm using an options trading simulator (from Investopedia) in order to practice, and what I don't understand is that when I try to sell a put option, it doesn't give me the option to "sell to open", it only gives the choices "buy to open" or "sell to close", and that's also the case with call options as well. Am I doing something wrong, or is it the platform, or....?

[LiaraJane]

I'm curious about a valuation from you on MRCC. Monroe Capital Corp.

[tomsettles]

Greg - could you please give us more detail on how you got to $80k - $100k annual income, how much $$ you invested to get this income going, and what investments you're currently in that add up to this? My wife and I have approx. $300k to invest and we were going with standard 60% voo/vti and 40% munis/gold in our taxable account, but I would love to see how you've done it. Our Roths are maxed out in dividend etfs (SCHD, QYLD).

[udaykhatry]

Selling leap put and quoting mr valuation insame sentence. Bravo!!!!

[hollyzhang]

Never did option.
What if the price did not hit? The money (cash) will be tied until Jan. 21, 2022, Right? Do you get $700 anyway?
If it hit Feb. 25, 2021, do you still get the $700?
You only collect dividend after you got the shares, the sooner the better.

[tloty]

I’m so happy I found your channel because I’m very new to this. I believe you will be very valuable in my new interest in the stock market! Thank you.

[rcking]

u killed it on this wow need more of this , i need help lol

[robertbarry]

How did you decide on Put experation of Jan 22 vs Jan 23?

[mikebailey]

just wondering if your put option got exercised recently?

[billyjohnson]

Interesting I never bought or totally understand options or whether it’s safe. I’ve only bought dividend paying stocks and put the drip on. By the way your very clear with your explaining. What are the downsides in that trade?

[spiritualandphysicalfitnes]

Liked and subscribed 👊🏽 thanks for the great info 🙏🏽

[Dave-ywwc]

Bought into BMY at 61 so I definitely payed more than even buffet, but at least not significantly more.

[sandraburritt]

Great video. I havent done options yet but you explained it so i could understand it a little better..