6 Greatly Undervalued Dividend Stocks Buffett Could Buy Next

Today, we’re looking for 6 dividend stocks that could match favorably with Warren Buffett’s investment philosophy exhibited through his conglomerate Berkshire Hathaway (BRK-A, BRK-B). A quick review of Buffett’s simple philosophy is in order. Buffett is a value investor. His strategy is an adaptation of Benjamin Graham’s approach. In the simplest terms, Buffett chooses great companies trading at less than their intrinsic value. He insists on a margin of safety relative to that intrinsic value. In this article, I undercover values that warrant further investigation through your own due diligence. I provide the valuation on a discounted cash flow basis using a normalized 10% cost of equity. On the surface, these stocks fit the Buffett evaluation model described above however further research is advised before committing capital. AAR Corp. (AIR) is a small cap in the industrial goods sector, trading at about $18, which is just under... Read more