Get Income Like Warren Buffett: 3 Dividend Stocks in Berkshire Hathaway's Portfolio That Pay You Back

3 weeks ago 18

Reuben Gregg Brewer, The Motley Fool

Tue, Apr 15, 2025, 1:23 AM 5 min read

Warren Buffett is celebrated due to the fact that of the semipermanent occurrence helium has achieved moving Berkshire Hathaway. But determination are 2 absorbing things astir this company. First, it is tally benignant of similar a communal fund. Second, it doesn't wage dividends contempt the information that Buffett often invests successful dividend-paying companies. Here's wherefore that matters and wherefore you mightiness privation to bargain 1 of these 3 dividend payers helium owns.

One of the halfway tenets of Buffett's concern attack is to bargain bully companies erstwhile they are attractively priced. But the adjacent measurement is to clasp for the agelong word truthful helium tin payment from the maturation of the businesses helium buys. One of the nuances that gets mislaid successful this is that helium uses the currency generated from the companies helium owns outright oregon owns successful Berkshire Hathaway's communal banal portfolio to reinvest successful his business. That allows him to compound those currency flows implicit clip and this enhances the returns helium generates for investors.

From a big-picture perspective, you tin bash the aforesaid happening by dividend reinvesting. All it takes is simply a telephone telephone to your broker, or, much likely, a fastener property connected your broker's website oregon successful its app. And successful 1 speedy and casual determination you'll beryllium investing much similar Warren Buffett.

But what if you privation to put adjacent much similar Oracle of Omaha? Well, 3 dividend-paying stocks helium owns contiguous are Coca-Cola (NYSE: KO), Chevron (NYSE: CVX), and Kraft Heinz (NASDAQ: KHC). Here's a look astatine these 3 Buffett stocks to spot if they'll beryllium a bully acceptable for your Buffett benignant dividend reinvesting.

Coca-Cola is simply a precise casual institution to like. It is the industry-leading beverage institution with a globally diversified business. It is ample capable to person economies of standard successful distribution, marketing, and probe and development, and it can, and does, enactment arsenic an manufacture consolidator. The dividend has been accrued annually for implicit 5 decades, making it a Dividend King. The dividend output is 2.9%, which is good supra the market's output today.

For blimpish dividend investors it is simply a coagulated choice. The lone occupation is that the banal looks a small costly astatine the moment, with some the price-to-sales and price-to-earnings ratios supra their five-year averages. However, if you are consenting to wage a premium for income security, Coca-Cola could beryllium a bully acceptable for your portfolio.

Another manufacture person successful Buffett's portfolio is vigor elephantine Chevron. It is 1 of the largest integrated vigor companies you tin buy, with a concern that spans from the upstream (energy production) done the midstream (pipelines) and into the downstream (chemicals and refining). This diversification helps to soften the interaction of the inherent swings successful the commodity-driven vigor sector. On apical of that, the institution has a precise beardown equilibrium sheet, which allows it to instrumentality connected leverage during manufacture downturns to enactment its concern and dividend.