One FTSE 250 dividend stock I think Warren Buffett would buy today

first_imgOne FTSE 250 dividend stock I think Warren Buffett would buy today Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: The Motley Fool Simply click below to discover how you can take advantage of this. Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Roland Head | Sunday, 15th March, 2020 | More on: GRG Our 6 ‘Best Buys Now’ Shares What should you be buying in this market crash? I reckon one useful tip is to consider the kinds of companies investing legend Warren Buffett has been known to buy when prices are attractive.The US billionaire is known for his patience and entered 2020 with a $120bn+ cash pile. We don’t yet know if he’ll make any big buys during the current slump. But I reckon the FTSE 250 stock I’m going to look at today would tempt Mr Buffett if he ventured over this side of the pond.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Simple and familiarWarren Buffett is known to like convenience food. His holding company Berkshire Hathaway owns US fast food chain Dairy Queen and is the largest shareholder in both Coca-Cola and Kraft Heinz. Mr Buffett is said to be a regular customer of all three companies.All of this makes me think that if he was in the UK, the Oracle of Omaha would be keen to take a look at Greggs (LSE: GRG). This UK high street chain satisfies all of Buffett’s requirements, in my view.Simple and essentialGreggs is really a pretty simple business. The company makes and sells a range of takeaway food and drink. Despite recent healthy innovations, the core product range is built around reliable favourites such as sausage rolls and pasties.You don’t have to look hard to find a Greggs, as its stores are always located in areas with strong footfall. This includes high streets plus workplace and travel locations. The store estate is constantly evolving to ensure that it stays focused and relevant.Although the coronavirus seems likely to hit sales over the coming months, beyond that I’m pretty certain Greggs will bounce back strongly.Strong managementThe company is also very well managed, in my view. Boss Roger Whiteside has played a leading role in developing the UK’s food-to-go sector and appears to have built an excellent team at Greggs.He’s gradually evolved Greggs’ food offering to cover more parts of the day and to broaden its appeal. The vegan sausage roll was a high-profile success. But did you know that Greggs is now the UK’s third-largest takeaway coffee retailer?Mr Whiteside’s success at Greggs marks him out as one of the best CEOs in the FTSE 250, in my opinion.The right price to buy?Last week’s market crash left the Greggs share price hovering around 1,700p — roughly the same as one year ago. That’s not a huge crash, in the scheme of things. But this reflects the high quality character of the business, in my view.In recent years, this group has reported very low debt usage and strong cash generation. Returns on capital employed are also high, averaging about 20%.In my view, Greggs’ financial performance would look very appealing to Mr Buffett, who likes businesses that can generate growth without needing too much external funding.Greggs shares currently offer a dividend yield of nearly 3%. I suspect profits might crash this year, but I’d expect next year to see a return to business as usual. In my view, this market crash could be an excellent opportunity to start buying this popular stock. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address See all posts by Roland Headlast_img

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