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

Julian WestSunday, Nov 3, 2024 5:22 am ET

1min read

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.

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vivifcgb

11/03

In a recent interview, Warren Buffet discussed the Northern Pacific Squeeze of 1901, providing insights into the dangers of misaligned statistical thinking. For those of you new to financial systems and their inherent risks, this lesson is a must-read. In 1962, Buffet began retooling Berkshire Hathaway, and one of the first lessons he had all employees learn was the Northern Pacific Squeeze. This lesson serves as a reminder of the importance of accurate statistical orientation and the potential consequences of getting it wrong. In the interview, Buffet explained that during the Northern Pacific Squeeze, many individuals became overly focused on concrete data, leading them to make incorrect assumptions about the future. This concretized thinking resulted in missed opportunities and significant financial losses. The lesson from the Northern Pacific Squeeze is a stark reminder that probability and statistics are not the same thing. Focusing solely on concrete data can lead to biased decision-making and misaligned risk assessments. As Buffet wisely stated, "It's only when the tide goes out that you discover who's been swimming naked."

aiolyfe

I purchased $KO shares at around $55 not too long ago, and I've been receiving a modest dividend from my investment so far. I'm glad I took Buffett's advice on this one.

Argothaught

$INTC There are various Dow components that have experienced dips and returned to the fold. IBM (IBM) entered the DJIA in 1932, but was absent between 1939 and 1979 before rejoining permanently. Coca-Cola (KO) also joined the DJIA in 1932, but was excluded from the index between 1935 and 1987 before being reinstated. AT&T was removed from the Dow in 1928, 2004, and again in 2015. https://www.investopedia.com/articles/investing/113015/4-famous-companies-dropped-dow-jones.asp

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