Happy Monday!

Welcome back to the Dividend Data Weekly! I hope everyone had a great weekend and is ready to go for another week of investing.

Inside today’s edition, we take a look at Warren Buffett’s no longer secret purchase, Chubb, reflect back on Jim Simons life, and share other important dividend related news.

Let’s do this!

“Success in investing is not about being right all the time. It is about minimizing losses and maximizing gains.”

-Jim Simons

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THE KEY STORY

Chubb: The Secret is Out

Berkshire Hathaway’s recent 13F disclosed that Buffett’s recent “secret” buy was in fact Chubb Limited (CB Stock), the insurance company. Berkshire bought nearly 26 million shares in a stake valued at a little more than $6.7B, making Chubb the 9th largest holding in his portfolio. The stock was up almost 5% the day after the news came out.

Chubb Limited is a dividend paying stock who actually recently announced a 5.8% dividend increase, growing their quarterly dividend from $0.86 a share to $0.91 a share. The Company has had a consistent dividend growth rate with a CAGR of 3%+ for the past one, three, five, and ten years. Chubb also has an extremely safe dividend with a 10% payout ratio based on free cash flow and 15% based on net income for fiscal 2023. CB Stock is a cash flow machine!

Do I find this buy surprising?

Absolutely not. Buffett loves insurance companies and it is definitely within his circle of competence. Wrapping things up, it is also important to note that even though $6.7B sounds like a lot of money, it is still less than 2% of the Oracle of Omaha’s public stock portfolio!

Links: Q1 Press Release | Investor Presentation | Q1 Call Transcript

THE VIDEO

Jim Simons Passes Away at 86

On May 10th, legendary investor Jim Simons passed away at 86 years old. Leading with a quantitative, mathematics first approach, Simons’ Renaissance Technologies put together remarkable returns over several decades.

Specifically, the Company’s flagship fund, the “Medallion Fund,” had annual returns before fees of ~66% from 1988-2018. Unbelievable.

In the four minute video above, Simons shares insights into his investment philosophy and how he was able to generate outside returns over a long period of time.

INVESTING ARTICLES & STORIES

Home Depot, Walmart, Deere

1. Home Depot misses on revenue, as high interest rates hurt sales (CNBC)

2. Walmart Opens Year With Strong Sales, Aided by ‘Upper-Income’ Shoppers (NYT)

3. Deere Q2 results top Street but it cuts 2024 profit outlook again as farmers buy fewer tractors (AP)

4. Applied Materials’ stock dips despite upbeat earnings (MarketWatch)

5. 6 Dividend Stocks With Yields Higher Than the 10-Year Treasury (Barrons)

NOTABLE EX-DIVIDEND DATES THIS WEEK

Johnson & Johnson, Applied Materials, Discover Financial, 3M

Why does this matter?

Investors who purchase a stock on its ex-dividend date or after will not receive the next dividend payment.

• 5/20 — Alcoa, Johnson & Johnson, Prudential, Walgreens

• 5/21 — Cheesecake Factory, Energizer, Teradyne

• 5/22— Applied Materials, Discover Financial, Warner Music

• 5/23— Fortune Brands, International Paper, 3M, Marriott International

• 5/24 — KeyCorp, Northrop Grumman, Paycom, Yum! Brands

SOMETHING FUN

Happiness is Positive Cash Flow

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend Weekly (Dividend Data) is not a professional financial service. All materials released from Dividend Data Weekly (Dividend Data) are for educational and entertainment purposes. Dividend Data Weekly (Dividend Data) is not a replacement for a professional's opinion. Contributors to the Dividend Data Weekly (Dividend Data) might have equities mentioned in the newsletter