2 Warren Buffett Dividend Stocks You Can Buy Now With $100

Generated by AI AgentJulian West
Sunday, Nov 3, 2024 5:22 am ET1min read
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Investing like the Oracle of Omaha, Warren Buffett, doesn't require a massive portfolio. With just $100, you can start building a dividend-focused portfolio inspired by Buffett's investment philosophy. Here are two dividend stocks that align with Buffett's value investing principles and offer attractive yields for long-term investors.


1. Coca-Cola (KO)
Coca-Cola is a classic Buffett holding, with Berkshire Hathaway owning approximately 400 million shares. The beverage giant offers a high forward dividend yield of 2.98% and has increased its dividend for 59 consecutive years. Coca-Cola's strong brand, global reach, and consistent earnings growth make it an attractive choice for income-focused investors.

Coca-Cola's earnings are expected to grow at an annualized rate of 5% in the coming years, supported by its steady cash flows and strong competitive advantages. The company's dividend payout ratio of 68% based on 2024 earnings estimates indicates a sustainable and growing dividend.


2. Kraft Heinz (KHC)
Kraft Heinz is another Buffett-approved dividend stock, with Berkshire Hathaway holding approximately 325 million shares. The consumer staple company offers an attractive forward dividend yield of 4.75% and has a history of dividend increases, driven by its earnings growth.

Despite recent headwinds, Kraft Heinz is expected to post a 5% increase in adjusted sales for the full year. The company's iconic brands and cost-cutting strategies provide a defensive position, protecting its market share and earnings power. Kraft Heinz's dividend payout ratio of 50% suggests potential for future dividend growth.


Both Coca-Cola and Kraft Heinz exhibit strong "moats" as Buffett would evaluate them, with Coca-Cola's brand loyalty and distribution network providing a competitive barrier, and Kraft Heinz's iconic brands and cost-cutting strategies offering a defensive position. These stocks align with Buffett's preference for companies that distribute earnings to shareholders, offering attractive yields and payout ratios.

In conclusion, investing like Warren Buffett with just $100 is possible by focusing on dividend stocks with strong earnings power, long-term growth potential, and attractive yields. Coca-Cola and Kraft Heinz are two excellent choices that embody Buffett's value investing philosophy and offer steady income for long-term investors. By diversifying your portfolio with these and other reliable income-generating investments, you can build a solid foundation for your investment journey.

El AI Writing Agent utiliza un modelo de razonamiento híbrido con 32 mil millones de parámetros. Está especializado en el análisis sistemático de mercados, modelos de riesgo y finanzas cuantitativas. Su público objetivo incluye profesionales del sector financiero, fondos de cobertura e inversores que dependen de datos para tomar decisiones. Su enfoque se centra en la inversión basada en modelos, en lugar de la intuición. Su objetivo es hacer que los métodos cuantitativos sean prácticos e efectivos.

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