1 Top Warren Buffett Stock for Dividend Investors

Berkshire Hathaway CEO Greg Abel has taken a new position in M, buying 7.3 million shares worth $173 million. The stake marks a fresh bet on the department store operator, which currently trades at a price-to-earnings ratio of 9—roughly one-third the S&P 500's multiple of 26.

M offers a 3.4% dividend yield with a 29% payout ratio, leaving substantial room for distribution growth or reinvestment. The company is posting positive same-store sales growth as it executes a turnaround strategy, combining income generation with potential capital appreciation.

The valuation gap between M and the broader market creates a margin of safety for income-focused investors. Abel's purchase signals confidence in both the retailer's stabilization and its ability to sustain shareholder returns. The low payout ratio suggests dividends are well-covered by earnings, reducing distribution risk even if the turnaround encounters headwinds.