The best time to buy shares is when share prices are down. I think this is an opportunistic time to buy dividend shares that Warren Buffett would like.
Coronavirus has inflicted a terrible toll in terms of deaths as well as seriously affecting thousands more.
On the share market side of things, the S&P/ASX 200 Index (ASX: XJO) has seen a heavy fall. It's bouncing around a lot at the moment. After yesterday's huge 7% rise it's down 26.4% from the start of the falls.
Here are two dividend ideas that Warren Buffett might like:
Brickworks Limited (ASX: BKW)
Warren Buffett has an excellent mindset when it comes to investing in shares. He doesn't mind cyclical shares, you just have to think about the whole cycle when buying. He doesn't become more fearful if share prices keep dropping.
One of Berkshire Hathaway's subsidiaries is Clayton Homes, so he clearly doesn't mind the idea of being involved in property construction.
Construction has normal cycles. And the coronavirus is causing a huge short-term dent to construction activity. It will bounce back eventually, when life returns to normal. As one of Australia's biggest building products providers, Brickworks could be one to see a good recovery. It will also benefit when the US goes back to normal with some of its US brick plants currently shut down.
The Brickworks share price has fallen 29% since 21 February. Today, its share price is backed up by the underlying asset values of its 'investment' and industrial property trust segments. The (large) building products divisions are just a great bonus at the current valuation.
Brickworks has grown or maintained its dividend every year for over four decades and it currently offers a grossed-up dividend yield of 5.9%.
APA Group (ASX: APA)
The infrastructure business is another with a great dividend record. It has increased its distribution every year for around 15 years in a row. It has projected that the FY20 total distribution will be 50 cents per share, which amounts to a 4.7% yield at the current share price.
One of Berkshire Hathaway's biggest subsidiaries is Berkshire Hathaway Energy.
APA Group 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). It owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation's natural gas usage.
With winter coming and people being told to stay in their home, gas usage will likely be at least consistent compared to last year if not higher with all of the extra cooking at home that people will be doing.
APA's distribution is funded from its annual cashflow. It also keeps investing in new projects that will help grow its distributions into the future.
Foolish takeaway
Both of these businesses are solid dividend ideas with good starting yields, particularly when compared to today's ultra-low interest rate. I'd probably buy Brickworks today because of how much further the share price has dropped compared to APA.
