2 Warren Buffett Dividend Stocks to Scoop Up in April
In volatile markets, dividend stocks offer investors predictable income and stability. And when these dividend stocks are backed by Warren Buffett, arguably the greatest long-term investor of all time, the appeal becomes even stronger. Buffett has long valued companies with strong brands, consistent cash flows, and the ability to pay investors regardless of the economic…
In volatile markets, dividend stocks offer investors predictable income and stability. And when these dividend stocks are backed by Warren Buffett, arguably the greatest long-term investor of all time, the appeal becomes even stronger. Buffett has long valued companies with strong brands, consistent cash flows, and the ability to pay investors regardless of the economic cycles. Here are two Buffett-backed dividend stocks to buy in April.
American Express (AXP) is a global payments and credit card company, best known for its premium cards and affluent customer base. It makes money through transaction fees, interest income, and partnerships, positioning itself as both a payments network and a lender. The company has been in business since 1850 and holds a 15.8% weightage in Buffett’s holding company Berkshire Hathaway (BRK.B) (BRK.A).
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While its dividend yield sits around 1.17%, which is relatively low, the real strength lies in its payout ratio of 20.2%. A payout ratio this low means the company is only distributing a small portion of its earnings as dividends, leaving significant room for future growth and reinvestment. This implies that the dividends are safe and highly sustainable.
The company’s adjusted earnings increased by 15% to $15.38 per share in 2025, driven by higher spending from affluent consumers and international expansion. Last month, the company announced a 16% increase in quarterly dividend to $0.95 per share to be paid starting Q1 of 2026. In 2025, the company paid out $7.6 billion to shareholders, including $2.3 billion in dividends and $5.3 billion in share repurchases. Management expects earnings to increase by roughly 15% at the midpoint, to $17.3 to $17.9 per share in 2026. Over the past five years, its dividend has grown at over 15% annually, showing a clear commitment to returning capital. This combination of sustainable payout ratio and strong earnings growth is what income investors seek.
Besides dividends, AXP stock has also returned 125% over the past five years. So far this year, the stock is down 10%, compared to the S&P 500 index ($SPX) gain of 3.7%.
Overall, Wall Street remains moderately bullish on AXP stock. Out of the 29 analysts who cover the stock, nine rate it a “Strong Buy,” two say it is a “Moderate Buy,” 17 rate it a “Hold,” and one recommends a “Strong Sell.” The stock has an average price target of $358, which implies it can climb by 10% from current levels. However, its high target price of $462 implies a potential upside of 42% in the next 12 months.
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Kraft Heinz operates in the consumer packaged goods industry, owning iconic brands like Heinz ketchup, Kraft cheese, and Oscar Mayer. It generates steady cash flow by selling everyday food products globally, making it a classic defensive stock. Kraft Heinz holds a 2.3% weightage in Buffett’s holding company, Berkshire Hathaway.
Kraft offers a higher dividend yield of around 7.2%, making it highly appealing for income investors. Its payout ratio is roughly 61.5%, meaning it returns a significant portion of earnings to shareholders but still retains some profits for operations. Kraft’s payout ratio sits in the middle ground. While it offers higher income, it has less room for reinvestment in the business.
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Kraft Heinz was formed in 2015 after the merger of Kraft Foods Group and H.J. Heinz. However, Kraft Heinz has deep roots that stretch back more than a century, making it one of the most established names in the global food industry. This long operating history is one reason investors often view Kraft Heinz as a defensive, dependable dividend payer, supported by consistent consumer demand for everyday food products.
However, its recent performance has been mixed. In fiscal 2025, its adjusted earnings per share declined by 15% to $2.6 per share, while sales fell due to weaker volumes and consumer demand pressures. Nonetheless, the company generated a 15.9% increase in free cash flow of $3.7 billion. This enabled it to pay $1.9 billion in cash dividends and repurchase $436 million worth of shares. It recently paid a quarterly dividend of $0.40 per share, maintaining a steady payout. While there are some operational challenges, if Kraft Heinz successfully executes its turnaround strategy, there could be upside beyond just the dividend.
KHC stock has dipped 7.1% YTD, compared to the broader market gain, but is trading close to its average target price of $23.47. Plus, its high target price of $30 implies a potential upside of 32% in the next 12 months. Overall, Wall Street rates KHC stock a consensus “Hold.” Out of the 22 analysts who cover the stock, one rates it a “Strong Buy,” 16 rate it a “Hold,” two say it is a “Moderate Sell,” and four say it is a “Strong Sell.”
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On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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