3 Warren Buffett Dividend Stocks to Buy Right Now With $1000
Investing
If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway Inc. (NYSE: BRK-B) shareholders meeting draws thousands of loyal fans who are investors. This year’s meeting ended with a thud as Buffett announced that he would be stepping down as CEO at the end of this year. Buffett assured the public he would still be going into the office, and you can bet his advice on any big portfolio ideas will be heeded and appreciated.
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Energy executive and Warren Buffett’s hand-picked successor is 62-year-old Greg Abel.
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Abel has been vice chair of Berkshire Hathaway since 2018.
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Buffett will remain as the board chair at Berkshire Hathaway.
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For younger investors or those on a tight budget, investing in stocks to generate consistent passive income can be daunting because many top dividend stocks trade at prices ranging from $25 to over $100 per share. Realizing a significant return on investment can be challenging with a small investing capital base of $1,000. When building a portfolio of stocks, the most critical ingredient for success is getting started early. Regardless of how much money you begin with, if you continue to add to the pot and reinvest your dividends to buy more shares, there is a good chance for long-term success.
We screened the Berkshire Hathaway holdings looking for companies that pay dependable dividends and can supply some serious total return if they trade higher over time. We found three that appear to be great ideas for those with limited investing capital. All three will pay investors as they wait for a turnaround in the shares, and all make sense for growth and income investors on a limited budget.
Why do we cover Warren Buffett stocks?
There are few investors with the results and reputation that Buffett has garnered over the past 50 years. While investing has evolved over the past half-century, buying good companies with products and services recognized worldwide, while paying dividends, will always remain a timeless approach.
BYD
This is the top EV stock in China and has been a huge home run for Berkshire Hathaway, and is also one of the lowest-priced companies in the portfolio with a small 1.20% dividend. BYD Co. Ltd. (OTC: BYDDF) engages in the automobile and battery business in the People’s Republic of China, Hong Kong, Macau, Taiwan, and elsewhere.
It operates in two segments:
- Mobile Handset Components, Assembly Service, and Other Products
- Automobiles and Related Products
The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components, and offers assembly services.
The Automobiles and Related Products and Other Products segment is involved in:
- The manufacturing and sale of automobiles, and auto-related molds and components
- Rail transport and related business
- Automobile leasing and after-sales services
- Automobile power batteries
- Lithium-ion batteries
- Photovoltaic and iron battery products
The company develops an urban rail transportation business.
BYD was founded in 1995 and is headquartered in Shenzhen, China.
Kraft Heinz
Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest globally. It derives 76% of its revenues from that market and 24% from the International segment. Needless to say, even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous dividend. Kraft Heinz was formed via the merger of H.J. Heinz and Kraft Foods.
The company is a leading global food company with estimated annual revenues of $25 billion, derived from well-known brands such as Kraft, Heinz, Oscar Mayer, and Maxwell House.
Kraft Heinz’s additional brands include:
- ABC
- Capri Sun
- Classico
- Jell-O
- Kool-Aid
- Lunchables
- Ore-Ida
- Philadelphia
- Planters
- Plasmon
- Quero
- Weight Watchers
- Smart Ones
- Velveeta
Sirius XM
The satellite radio giant is a relatively recent addition to the Berkshire Hathaway portfolio, and Warren Buffett has continued to increase his stake over the past year. Sirius XM Holdings Inc. (NASDAQ: SIRI) is an audio entertainment company in North America.
The company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions.
Its segments include:
- Sirius XM
- Pandora and Off-Platform
The Sirius XM segment offers a variety of content, including music, sports, entertainment, comedy, talk, news, traffic, and other channels, as well as podcasts and infotainment services, in the United States for a subscription-based fee.
Sirius XM’s packages include live, curated, and specific exclusive and on-demand programming.
The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, vehicle speakers, or connected devices.
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