Banking Turmoil

Warren Buffett’s ‘Secret Sauce’ Involves One of Investing’s Most Basic Strategies

Dividend stocks are core to Berkshire Hathaway’s portfolio, which is expected to generate about $5.7 billion in cash this year

Fans of Warren Buffett will flock to Omaha, Neb., on Saturday for Berkshire Hathaway’s annual meeting . Photo: Nati Harnik/Associated Press

What has made Warren Buffett’s stock portfolio so successful over time?

One answer is an uncanny knack for picking good businesses. Another, according to Mr. Buffett, is something more understated: an appreciation of dividend-paying stocks.

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