2 Warren Buffett Stocks That Pay You Passive Income

Berkshire Hathaway (BRK-B), led by legendary investor Warren Buffett, continues to hold significant stakes in companies with strong dividend payouts. According to a report from Barchart, two notable stocks in its portfolio offer attractive passive income.

American Express (AXP)

American Express is one of Berkshire's largest holdings, with a stake of about 19%. The company is known for generating substantial free cash flow, allowing it to consistently increase dividends. Last year, American Express raised its dividend by 17%, reflecting management's confidence in sustained growth.

Chevron (CVX)

Chevron is a global energy company in which Berkshire holds approximately a 6% stake. Chevron boasts a dividend yield of over 4%, above the sector average. Supported by strong cash flows from elevated oil prices, Chevron continues to raise its annual dividend, making it attractive for income-seeking investors.

Context

These moves come as investors seek stable income sources amid market volatility. Buffett's focus on companies with strong cash flows and sustainable dividends reflects his long-term strategy.

What This Means for Investors

For investors looking for passive income, these stocks could be valuable additions to a portfolio, especially with Berkshire's backing. However, risks such as energy sector volatility or changes in consumer spending should be considered.