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GOIB: Big Income on 1 of Berkshire’s Favorite Stocks

BY | ETF Database
5:15 am ET 09/22/26 | 13 VIEWS
Berkshire Hathaway (BRK.A BRK.B) doesn’t pay a dividend, but Warren Buffett, previously the leader of the fabled conglomerate, invested in plenty of dividend stocks over the course of his career. That said, he also embraced plenty of low-yielders and non-dividend payers, too.These days, Google parent Alphabet (GOOGL) — definitely a low-yield name — is one of Berkshire’s largest equity positions. That’s a noteworthy endorsement to be sure, but the stock sports a dividend yield of just 0.25%. Investors who want to follow Berkshire’s lead while generating more income from Alphabet may want to examine the newly minted Direxion GOOGL Defined Income Boost ETF (GOIB). This single-stock ETF, which debuted on July 29, tracks the Cboe GOOGL Defined Income Index and aims for an annual distribution yield of 20%. Put simply, the options-based GOIB is highly likely to deliver income well in excess of what investors earn when they own Alphabet common shares.Don’t Forget the MoatBuffett also has an affinity for wide-moat companies — a box undoubtedly checked by Alphabet and one that could make GOIB all the more appealing to equity income investors. “We believe Alphabet has a wide moat based on the intangible assets, network effect, cost advantage, and customer switching costs in a variety of its businesses,” noted Morningstar analyst Malik Khan. “Contributing to this moat are Google Search, which has built significant intangible assets, primarily via its brand, and a potent network effect; YouTube, which has a strong network effect and intangible assets; Google Cloud Platform, which has high customer switching costs and cost advantages; and the Android operating system and application store Google Play, which have intangible assets and a network effect.” GOIB could also be attractive to income investors at a time when the Federal Reserve is expected to hike interest rates at least once more before the end of this year, likely sending Treasury yields higher in the process. The new ETF fits the bill as an alternative income fund, implying minimal sensitivity to Fed tightening. GOIB may also be a fit for investors who are seeking some upside participation at a time when some experts believe there’s value in Alphabet shares. “We forecast Alphabet’s top line to grow at an 18% compound annual rate over the next five years. We foresee a slight expansion in Alphabet’s operating margins over the next five years. Scale and improving Google Cloud margins should enable the company to improve profitability,” added Khan.For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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