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3 Warren Buffett dividend shares you can buy today

There are some ASX dividend shares that you can buy right now that Warren Buffett would probably want in his own portfolio. If he focused on ASX shares. 

I think Warren Buffett is one of the greatest investors in the world. He has a particular investment style which has worked wonderfully over the decades. He only invests in what he can understand, which helps him avoid some blow-ups.

Here are three dividend shares that could be good long-term picks for income:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the best dividend shares on the ASX in my opinion. It’s actually fairly similar to Berkshire Hathaway in terms of how it operates.

Both of them invest for the long-term in listed and unlisted businesses. Whilst Berkshire Hathaway is invested in businesses like Apple and US banks, Soul Patts is invested in businesses like TPG Telecom Ltd (ASX: TPG), Australian Pharmaceutical Industries Ltd (ASX: API) and Clover Corporation Limited (ASX: CLV). Some of Soul Patts’ unlisted investments include resources, agriculture and swimming schools.

Soul Patts has actually been listed since 1903, so it has excellent longevity. I think it’s the type of business that you could own forever. I certainly plan to be a very long-term shareholder. Warren Buffett’s favourite holding period is forever.

In terms of being a dividend share, it has great credentials. It has paid a dividend every year in its listed life going back to 1903. Soul Patts has increased its dividend each year since 2000. It has guided that it plans to increase its dividend later this year, despite COVID-19.

Soul Patts has a grossed-up dividend yield of 4.2%.

Brickworks Limited (ASX: BKW)

I think Brickworks is another of the best dividend shares on the ASX. I think it’s a Warren Buffett share because Clayton Homes is one of the larger divisions of Berkshire Hathaway. There will always be long-term demand for quality property-related services and products in my opinion.

Interestingly, Brickworks is actually one of Soul Patts’ largest investment positions and Brickworks owns a large amount of Soul Patts shares. The Soul Patts investment is one of the main reasons why Brickworks has been able to pay a reliable dividend to shareholders. Brickworks has seen pleasing growth in the capital value of its Soul Patts shares as well as rising dividend payments.

Brickworks also owns a 50% stake of a quality industrial property trust, along with Goodman Group (ASX: GMG). The idea is to build high quality industrial properties which are benefiting from the growth of e-commerce and the need for better logistics for many businesses. Two huge warehouses will soon be built for Amazon and Coles Group Limited (ASX: COL) which should materially increase the rent and valuation of the property trust.

Brickworks is a great dividend share because its dividend is sustained just from the two segments I’ve mentioned, which pay very defensive cashflow to Brickworks. The property trust and Soul Patts shares alone fund Brickworks’ current dividend.

Brickworks hasn’t cut its dividend for over 40 years. The dividend share currently has a grossed-up dividend yield of around 5%.

The business also has the potential to make large earnings in the fuure from its building product divisions once COVID-19 is over, particularly in the US. I think the best time to buy cyclical shares is as close to the bottom of the cycle as you can (in share price terms).

APA Group (ASX: APA)

APA Group is another Warren Buffett dividend share pick in my opinion. Berkshire Hathaway Energy and railroads are two of the largest businesses within Buffett’s business. I think APA is somewhat a mix of these two businesses.

The business owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

The business boasts of very reliable annual cashflow. APA’s distribution is funded from that cashflow. That cashflow is steadily growing as APA invests into new energy projects which should boost cashflow further.

APA has grown its distribution every year for the past decade and a half. It currently has a distribution yield of 4.5%.

Foolish takeaway

I think Warren Buffett would like all three of these ASX dividend shares. Considering nearly all of Warren Buffett’s wealth is tied up in Berkshire Hathaway shares, I think he’d probably go for Soul Patts with its good internal diversification. It would be my pick as well.

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Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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