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