If you're looking to generate passive income from your investments, consider following the lead of legendary investor Warren Buffett. Berkshire Hathaway, the conglomerate Buffett chairs, is known for its long-term investments in dividend-paying stocks. By investing $10,000 in each of the following five Buffett stocks, you could generate over $2,100 in passive income this year.
1. Kraft Heinz (KHC) - Forward dividend yield: 5.4%
Kraft Heinz is a food and beverage giant with a diverse portfolio of brands. Its forward dividend yield is one of the highest among Buffett's holdings. An investment of $10,000 in Kraft Heinz should give you around $540 in passive income this year.
2. Sirius XM Holdings (SIRI) - Forward dividend yield: 4.91%
Sirius XM is a leading provider of satellite radio services. Its forward dividend yield is attractive, and Buffett has increased his stake in the company recently. An investment of $10,000 in Sirius XM should provide around $491 in passive income over the next 12 months.
3. Chevron (CVX) - Forward dividend yield: 4.19%
Chevron is an integrated energy and chemicals company with a strong track record of dividend growth. Its forward dividend yield is appealing, and Buffett has held a significant stake in the company for years. An investment of $10,000 in Chevron should generate at least $419 of passive income over the next year.
4. Diageo (DEO) - Forward dividend yield: 3.41%
Diageo is a global leader in alcoholic beverages, with a portfolio of well-known brands. Its forward dividend yield is attractive, and Buffett added Diageo to Berkshire's portfolio in 2023. An investment of $10,000 in Diageo should provide around $341 in passive income this year.
5. The Coca-Cola Company (KO) - Forward dividend yield: 3.11%
Coca-Cola is a iconic beverage company with a strong global presence. Its forward dividend yield is appealing, and Buffett has held a stake in the company for decades. An investment of $10,000 in Coca-Cola should generate at least $311 of passive income this year.
These five Buffett stocks offer attractive dividend yields, providing a solid foundation for generating passive income. Keep in mind that dividends can change over time, and it's essential to monitor your investments and stay informed about any developments that may impact their performance.
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