Warren Buffett’s Berkshire Hathaway Just Endorsed This Dividend King Stock—Here’s Why It’s a Game-Changer
Berkshire Hathaway drops a bombshell endorsement on a Dividend King—and the market's taking notice.
Why Buffett's move matters now
Forget passive income fantasies—this is about institutional validation hitting a legacy performer. Berkshire doesn't throw weight around lightly, and when it does, sharks circle.
The hidden signal in plain sight
Buffett’s team bypasses flashy tech plays yet again, doubling down on predictable cash flows instead. Because sometimes the smartest trade is the one Wall Street overlooks while chasing crypto hype.
Dividend aristocrats aren’t dead—they’re evolving
This isn’t your grandpa’s blue-chip stock. It’s a calculated bet on stability in a market drunk on volatility. And honestly? Watching finance bros rediscover dividends is almost poetic.
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Nucor's free cash flow is about to surge
Steel is a capital-intensive business. Nucor has invested more than $15 billion to grow the company since 2017. It expanded existing facilities, built new greenfield plants, and made acquisitions. Many of those investments are now generating revenue and cash flow. With equipment up and running, Nucor's capital spending will slow in the coming quarterly periods.
Nucor CFO Steve Laxton noted that in the company's second-quarter earnings call. He told investors the company expects "a dramatic change in free cash FLOW profile in the back half of the year compared with the first half of the year." He added that lower capital spending and market conditions "set up a very nice free cash flow outlook for the second half."
That's likely one reason Nucor was added to Berkshire's portfolio this year. Buffett and his investing team built a 3% stake in the steelmaker over the first six months of the year. Other stocks Berkshire added were homebuildersand. That could indicate Buffett and his team see tailwinds coming from a resurgence in housing.
Nucor is also one of the market's elite Dividend Kings with an expected increase in 2025 being its 53rd consecutive annual raise. Only companies that have increased dividends at least 50 straight years qualify as Dividend Kings. That income could add to shareholder returns as macro tailwinds and growth investments drive its earnings potential.