In a volatile market in which investors seek both growth and stability, dividend stocks stand out as safe-haven investments. Warren Buffett, also known as the “Oracle of Omaha,” and his company Berkshire Hathaway (BRK.B), are well-known for investing in high-quality businesses with long-term competitive advantages, strong management, and predictable cash flows. 

Many of these companies also happen to be reliable dividend payers. 
If you want consistent growth, dividend income, and peace of mind, consider these two Buffett-backed dividend stocks.

Warren Buffett Stock #1: American Express

American Express (AXP), also known as AmEx, is one of the world’s most recognized financial services brands. AmEx is well-known for its credit and charge cards, particularly those aimed at affluent individuals and businesses, as well as for travel services. The company holds a 14.6% weight in Berkshire Hathaway's portfolio, reflecting Warren Buffett’s confidence in the company’s long-term prospects. 
AmEx pays a dividend that yields 1.24%. While yield is an important factor in evaluating dividend stocks, a company’s payout ratio is critical for determining dividend safety. American Express has a low payout ratio of around 19%, which means it retains a significant portion of its earnings to reinvest in growth while still rewarding shareholders.

Valued at $187 billion, AmEx stock has fallen 10.8% year-to-date, compared to the S&P 500 Index’s ($SPX) fall of 6.1%. 

In the most recent first quarter, diluted earnings rose 9% to $3.64 per share, with a 7% increase in revenue net of interest expense. Unlike many credit card companies, American Express focuses on high-income, creditworthy customers who are less vulnerable to economic downturns. This affluent customer base also allows the company to charge annual fees and promote high-margin products, which boost profitability and dividend payouts. It paid out $600 million in dividends and repurchased shares worth $700 million in Q1.

In March, the company raised its quarterly dividend by 17%, to $0.82 per share. That demonstrates management’s confidence in the company and its ability to generate long-term cash flow. AmEx reported $52.5 billion in cash and cash equivalents at the end of the first quarter. The company’s debt-to-equity ratio is high, at 1.64x. However, AXP’s interest coverage ratio of 6.04x reveals that its earnings easily address debt interest payments.

Amex continues to benefit from the resurgence of global travel and customer experiences. It provides exposure to long-term trends in digital payments, travel rebound, and global card adoption, all of which are expected to increase in the coming years. The company provides a unique combination of dividend reliability, long-term growth potential, and economic resilience. While its yield may not stand out, its strong dividend growth track record, solid balance sheet, and premium customer base make it an excellent addition to any dividend investor’s portfolio.

Analysts covering AmEx expect revenue to rise by 8% in 2025, followed by earnings growth of 14.2%. Despite its strengths, AXP is currently trading at 17.1x forward earnings, which is reasonable given its historical averages and earnings growth potential. For long-term investors, this is an opportunity to secure a quality dividend payer at a reasonable price. 

Overall, analysts consider American Express stock a “Moderate Buy.” Out of the 29 analysts that cover the stock, nine rate it a “Strong Buy,” two recommend a “Moderate Buy,” 17 suggest a "Hold,” and one rates it a “Strong Sell.” The Street’s average target price is $298.42, which is 13% higher than current levels. 

Warren Buffett Stock #2: Kraft Heinz

With a market cap of $35.4 billion, the Kraft Heinz Company (KHC) is one of the largest food and beverage companies in the world. It owns several iconic brands, including Heinz ketchup, Kraft Mac & Cheese, Oscar Mayer, Velveeta, Smart Ones, and Philadelphia cream cheese, among others. Its products are sold all over the world, making it a major player in the global food industry. Kraft Heinz pays an attractive dividend yield of 5.4%. Its stable payout ratio of about 57.6% indicates that the company’s earnings can support dividend payments while leaving room for dividend growth.

KHC stock has fallen 4% year-to-date, compared to the broader market dip. 

In the fourth quarter, while revenue dipped 3.1%, adjusted earnings increased by 7.7%. For 2024, revenue fell by 2.1%, while adjusted earnings rose by 2.7%. Despite recent revenue headwinds, Kraft Heinz continues to streamline its portfolio, focus on international market growth, and expand its product lineup to meet changing consumer tastes while maintaining dividend payouts.

In 2024, it generated $3.2 billion in free cash flow, paid $1.9 billion in dividends, and repurchased $988 million of its shares. Management expects organic net sales to be flat or down 2.5% in 2025 compared to fiscal 2024. Adjusted earnings could fall by 10% to 14% this year. Free cash flow generation could be comparable to 2024. Kraft Heinz represents around 3.5% of Berkshire Hathaway’s portfolio. Buffett’s investment philosophy emphasizes strong fundamentals and consistent performance, aligning with Kraft Heinz’s profile.

Analysts expect Kraft Heinz’s revenue and earnings to fall by 3% and 12%, respectively, in 2025. However, earnings are expected to rise by 3.8% in 2026. KHC, trading at 10 times forward 2026 earnings, is a reasonable dividend stock to buy right now. 

On Wall Street, Kraft Heinz stock is rated a “Hold” overall. Out of the 20 analysts who cover KHC stock, one rates it a “Strong Buy,” 15 rate it a "Hold,” one says it’s a “Moderate Sell,” and one rates it a “Strong Sell.” The stock is hovering around its average price target of $30.10. However, its high target price of $35 implies upside potential of 17% over the next 12 months.