Topics: Warren Buffett, Dividend Stocks

Summary: What has made Warren Buffett$$s stock portfolio so successful over time? One answer is an uncanny knack for picking good businesses. Another, according to Mr$.$ Buffett, is something more understated: an appreciation of dividend$-$paying stocks.

Classroom Application: This article provides an opportunity to discuss stock valuation, how companies return capital to shareholders, and the investment strategy of one of the legends of investing $-$ Warren Buffett.

Questions:

$$ Why are dividend stocks appealing to investors like Warren Buffett?

$$ What are some of the risks associated with dividend stocks?

$$ How have Buffett's stakes in Coca Cola and American Express evolved over time?