2 Warren Buffett Dividend Stocks to Buy Hand Over Fist in March

Warren Buffett's investing skills have created enormous wealth for his investors. From 1965 through 2024, he delivered a 5,502,284% cumulative return for Berkshire Hathaway shareholders.

If you're interested in building passive income, Berkshire's stock portfolio is full of outstanding businesses that pay regular dividends. Here are two that offer solid value right now.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

1. Coca-Cola

Buffett has often favored buying and holding shares of large and profitable consumer brands. He originally bought Coca-Cola (NYSE: KO) stock in the aftermath of the 1987 Black Monday crash. The original $1.3 billion investment was worth $25 billion at the end of 2024, with an additional $776 million in dividend income.

Coke has paid a growing dividend for 63 consecutive years, which speaks to its resiliency as an income investment. It typically pays out most of its earnings in dividends every year and recently increased the quarterly dividend by 5% to $0.51, bringing the forward yield to 2.88%. This Dividend King has actually increased its dividend for 62 consecutive years.

While Coca-Cola won't deliver the same returns as it did for Buffett over the next 30-plus years, there are a few reasons investors can expect the business to continue growing sales, earnings, and dividend payments.

Coca-Cola's $47 billion in annual revenue is still small compared to the global beverage industry, which is estimated to be worth $276 billion, according to Statista. With marketing, new products, and deeper geographic penetration, Coca-Cola has ample opportunities to grow sales.

As the company grows larger and achieves greater scale, it also continues to improve margins, which can grow earnings faster than sales, and since dividends are paid out of a company's earnings, this should keep Coca-Cola's dividend streak going.

2. Kroger

Berkshire Hathaway has maintained a stake in Kroger (NYSE: KR), one of the prominent grocery store chains, since 2019. It still held 50 million shares at the end of 2024.

Well-managed grocery stores can make excellent dividend investments. Grocery stores tend to retain a loyal customer base that lives within close proximity to each store. While online food delivery has emerged as a competitive threat in recent years, Kroger has kept pace with technology. Digital sales totaled $13 billion in fiscal 2024, or 9% of total sales.

Kroger has paid a dividend every year since 2006 and paid out just 31% of its earnings last year. This relatively low payout means it should grow its dividend substantially. Over the last 10 years, its dividend tripled, growing four times faster than Coca-Cola's.

Its dividend growth potential is appealing considering it already pays an above-average forward yield of 1.94%, based on its current quarterly payment of $0.32.

The stock has returned roughly 20% over the last year and may offer more upside in 2025 and beyond. The company is improving margins with more efficient inventory management and growing sales from its private-label brands, which generate higher margins.

The stock offers solid value, trading at 14 times 2025 earnings estimates. Together with the attractive dividend yield, it should deliver excellent returns to investors.

Should you invest $1,000 in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $690,624!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 10, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.