If You Invest $10K Each in These 5 Warren Buffett Stock Picks, You Could Make $175 a Month in Passive Income
Written by
Jacob Wade
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Zuri Anderson
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Warren Buffett is worth over $150 billion, and one of the best investors of all time. His Berkshire Hathaway holding company is worth over $1 trillion, and Buffett is known to be a fan of large companies that pay consistent dividends.
If you have ever wondered what it would take to earn over $100 per month in passive income from dividends, here’s how the Oracle of Omaha would do it. Buffett’s top five, highest-paying dividend stocks, as provided by CNBC, are paying over 5% annual yield, which is better than most high-yield savings accounts today.
GOBankingRates listed these dividend stocks and figured out how much you would need to invest to earn over $175 per month without lifting a finger!
Kraft Heinz (KHC)
Kraft Heinz is one of the most well-known names in packaged foods and condiments. Buffett holds nearly $10 billion worth of the massive food company, which represents around 3.6% of the overall Berkshire Hathaway portfolio.
The longtime brand is currently paying a 5.29% dividend — which is the top dividend-paying company on Buffett’s list. But the high dividend payment is actually a testament to poor management and a dropping share price than strong financials.
Sirius XM (SIRI)
Sirius XM is a satellite radio provider that pays out a solid dividend — and Buffett owns nearly 35% of the company. His $2.7 billion holding in Sirius XM stock only represents 1% of the Berkshire Hathaway holdings, but makes the company the largest Sirius stockholder by far.
While Sirius XM is one of Berkshire Hathaway’s smaller holdings, but is currently paying out a 4.76% dividend. The stock itself has not performed well as of the last few years, dropping nearly 50% in price over the last few years.
Chevron (CVX)
Chevron is an oil and gas giant that has been paying out dividends for years. In fact, Chevron is part of the coveted “Dividend Aristocrats” group that has paid out a consistent dividend for over 25 years straight — and increased their dividend payment each year.
Chevron is one of Berkshire Hathaway’s largest holdings, with over $18 billion invested — making up around 6.7% of the total portfolio. Chevron is currently paying a 4.47% dividend yield and has a strong balance sheet to back it up.
Ally Financial (ALLY)
Ally Financial is a banking and financial services company that actually dates its history back to 1919 — when General Motors started the firm to help provide auto loans. And while it’s still a large auto loan company, it has expanded to banking, mortgages and even investments.
Ally offers a solid 3.52% dividend yield, and Warren Buffett’s Berkshire Hathaway owns about $1 billion worth of the company. This represents a smaller holding for Berkshire Hathaway — only 0.4% of the total company holdings.
Citigroup Inc. (C)
Citigroup Inc. is a large banking and credit card company that makes money from lending and credit cards. The company is a smaller Buffett holding with about $1 billion owned currently. The stock has fared well over the last year with the promise of lower interest rates in the future.
Currently, Citigroup is paying a solid 3.26% dividend to shareholders and has solid financials, as well.
How To Make $175 in Dividends Per Month From These Stocks
Making $175 per month in dividends might not sound like a lot — but imagine if your water bill was paid without having to lift a finger. Or you could take your spouse out for one nice meal a month without having to put it in the budget.
While it’s not enough to retire on, earning truly passive income through dividends is an amazing feeling. Here’s how investing $10,000 into each of these stocks can net you over $175 per month passively:
| Company | Investment Total | Dividend Yield | Total Annual Income | Total Monthly Income |
| Kraft Heinz (KHC) | $10,000.00 | 5.29% | $529.00 | $44.08 |
| Sirius XM (SIRI) | $10,000.00 | 4.76% | $476.00 | $39.67 |
| Chevron (CVX) | $10,000.00 | 4.36% | $436.00 | $36.33 |
| Ally Financial (ALLY) | $10,000.00 | 3.52% | $352.00 | $29.33 |
| Citigroup Inc (C) | $10,000.00 | 3.26% | $326.00 | $27.17 |
| Total Income | $2,119.00 | $176.58 |
As you can see, investing a cool $50,000 into these dividend stocks can help you get to over $175 per month in passive income. Now, most of these stocks pay out quarterly dividends, not monthly — so you won’t actually get a paycheck each month. But if you like the idea of over $500 dropping into your brokerage account every few months, Warren Buffett’s dividend stocks are the way to go!
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