Warren Buffett. That's right. The legendary billionaire investor - arguably the greatest investor of all time - almost exclusively buys high-quality dividend growth stocks. And there's one stock that both of us like a lot. Today, I want to tell you about a Buffett-approved high-yield dividend growth stock that I recently bought. Warren Buffett oversees a $295 billion common stock portfolio for his conglomerate, Berkshire Hathaway. There are 44 different stocks in that portfolio. And only one of those stocks is a real estate investment trust. That's right. There's only one Buffett-approved REIT in the world. So of all of the REITs out there, there's only one that Berkshire Hathaway likes enough to own. I think that speaks volumes about this company's appeal. I've gotta say, I see the appeal myself. So much so, in fact, that I recently added to my position in this REIT.

The stock I recently bought is Store Capital Corp. (STOR). This is one of my favorite REITs. First, let's talk about what a REIT is. A REIT is a real estate investment trust. For equity REITs, that means you're basically buying into a company that owns and manages physical real estate. In the case of Store Capital, they acquire and manage single-tenant real estate buildings, triple net leasing them out over long periods of time to high-grade tenants. These tenants run the gamut of business models. One of their top tenants is Bass Pro Shops, which is an outdoor gear retailer. Another top tenant is Zips Holdings, one of the largest car wash operators in the US. Yet another top tenant is Cadence Education, which is one of the premier early childhood educators in the United States. It's a highly diversified tenant base, which I love. No one tenant accounts for more than 3% of base rent and interest. This reduces tenant risk. Plus, Store Capital has their tenants commit to very long leases - typically 15-20 years. This reduces vacancy risk. This REIT has grown at a healthy rate since going public in 2014. In my view, this stock is attractively valued.

Based on the midpoint of that aforementioned guidance, the forward P/AFFO ratio is 16.8. A lot of other high-quality eREITs are closer to 20 right now. And this is a stock that's offered an average yield of 4.3% over the last five years. You're getting a yield of 4.7% on it right now. That's in a broader market that arguably looks stretched and offers a yield of well below 1.5%. Relative to a lot of other ideas in this market, Store Capital looks like a deal. But don't take just my word for it. Buying this stock means you're investing alongside Warren Buffett. Berkshire Hathaway owns over 24.4 million shares of Store Capital, worth more than $800 million at today's price. In fact, Berkshire Hathaway bought shares in Store Capital during Q2 2020, back when they were actually busy selling a lot of other stocks. It's one of the few stocks they bought during the swoon.

Now, my position in Store Capital isn't anywhere near as large as Berkshire Hathaway's. Not even in the same universe, actually. But that's not the point. Investing can always be scaled up or down, depending on one's means and needs. Whether you own 1 share or 1 million shares, you still own a slice of a business. Store Capital might just be the REIT your portfolio needs right now. If you're looking for a high-yield, attractively valued dividend growth stock to buy in this arguably stretched stock market, take a good look at Store Capital. Buffett's firm has taken a look and bought it. So have I. You might want to consider doing the same.

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