3 Dividend Stocks Warren Buffett Would Love in Today’s Market

As the investor world comes to terms with the reality that Warren Buffett will slowly fade into the background in the coming months, the good news is that his investing lessons will live on forever. It goes without saying that Buffett is one of the most pre-eminent names in the investing world, and the things he taught about making the right choices are invaluable. 

Among Buffett’s most important lessons are looking at and identifying dividend stocks that do more than deliver monthly or quarterly paychecks. These investments will give you a sense of financial control, reduce your stress during volatile markets, and help you build long-term value in your portfolio through slow, steady compounding. 

This is the investing philosophy that Buffett not only championed, but also one that will help millions grow wealth without taking unnecessary risks. 

Why Warren Buffett Would Pay Attention To These Dividend Stocks

At the core of Buffett’s many investment strategies is the idea that he favors simple and durable business models, along with consistent free cash flow, and a management team that respects its shareholders. Buffett also liked to identify companies with strong pricing power, steady demand, and the ability to raise dividends over time. 

The following three companies fit the Buffett mindset, and they are closely related to sectors or companies he long valued and championed. Whether looked at individually or together, they offer strong yields, long payout histories, and a performance trend that shows they are competitive in their sectors. Buffett has long favored specific sectors, including not just consumer staples like Pepsi or Coca-Cola, but also financials and energy companies, among which are some of his biggest investments, such as Chevron and Bank of America. 

The names on this list successfully follow the same type of formula that Buffett used to identify and make his investments in these staple names, which validates exactly why he would look closely at these names, followed by significant investments. 

TD Bank

Aligning very closely with Buffett’s interest in financial institutions, TD Bank (NYSE:TD) is one such option that keeps a strong balance sheet while serving millions of customers. Currently, the stock offers a dividend yield of 3.66% and an annual dividend payout of $2.99, which means a payout ratio of 35.37% that leaves plenty of room for the dividend to be raised in the future. 

In fact, given that TD Bank has delivered nine straight years of dividend increases, this is the kind of stability Buffett would gravitate toward. Better yet, he would like the performance he has been seeing from the stock, which is up 59% year to date and shows a three-year gain of over 39%. These numbers indicate that there is a growth path for TD Bank that is supported by a steady lending demand, a strong Canadian market presence, and a U.S. footprint that continues to expand. 

Black Bills Corporation 

Another strong choice in the market that Warren Buffett would look to invest in is Black Hills (NYSE:BKH), which fits the template he has looked for in a utility company. Providing essential services, Black Hills carries forward a predictable cash flow and has increased its dividend for 54 straight years. 

Currently, the company is offering a 3.88% dividend yield with a payout of $2.70 annually, and its payout ratio of 68.50% is still within a healthy range for a regulated utility. Altogether, this shows the strength of a business that can continue to generate income regardless of any broader market conditions. 

Buffett would also look at how the stock has climbed 24+% in 2025 and has averaged a 16.5% return in the last three years. Utilities aren’t known for delivering fast growth, but it again comes back to delivering during uncertain markets. It’s this steady nature that would see Buffett making an investment in Black Hills. 

Enbridge

A big name in the energy world, Enbridge (NYSE:ENB) is delivering the exact type of cash flow that Buffett would value in an energy infrastructure. The company’s current pipeline and transport network can move essential fuel products that remain in high demand and will continue to be in high demand. 

Beyond its ability to weather market downturns, Enbridge is currently looking at a dividend yield of 5.54%, which lends itself to an annual dividend payout of $2.69 for every share owned. Enbridge also offsets its 146% payout ratio through a consistent cash flow built on long-term contracts and regulated assets, which supports the dividend even when energy prices are fluctuating. 

Overall, Enbridge’s performance solidifies it as a solid Buffett investment as it’s up 20.6% year-to-date and up 44% over the last three years. For investors, this means income, stability, and long-term growth potential, which is exactly the type of formula Buffett has favored when looking at income stocks that don’t require constant monitoring.