2 Warren Buffett Dividend Stocks to Buy With $1,000

Warren Buffett may no longer be the CEO of Berkshire Hathaway, but his legacy as one of the greatest investors of all time remains. It's still worth considering buying stocks that meet some of Buffett's preferences, including a strong competitive advantage and a robust dividend program.

Two stocks in Berkshire Hathaway's portfolio that fit the bill are Coca-Cola (NYSE: KO) and Visa (NYSE: V). Here's why, for investors with $1,000 to spare, putting that money in these two top stocks could be a brilliant move.

Image source: Getty Images.

1. Coca-Cola

Coca-Cola has been in Berkshire Hathaway's portfolio for a few decades. That's not surprising: The stock has Buffett-like qualities. First, it is relatively easy to understand. Coca-Cola makes money by selling various beverages. It is one of the leading companies in this niche.

Second, Coca-Cola has a strong moat due to its brand name. Few logos are more popular and recognizable worldwide than Coca-Cola's. The brand inspires consumers' trust and can attract them even with minimal marketing and advertising efforts. Beyond its namesake brand, Coca-Cola owns many others across major beverage categories, from sports drinks to water and even alcohol.

Coca-Cola continually updates its portfolio and launches new products to meet changing consumer preferences.

Third, as a giant in consumer staples -- an industry that is somewhat resistant to economic fluctuations -- Coca-Cola tends to perform relatively well even during downturns.

Finally, Coca-Cola is an exceptional income stock. The company is part of the group of companies with 50 years or more of consecutive annual dividend increases, also known as Dividend Kings. Coca-Cola's consecutive increase streak currently stands at 63, with the 64th announced in February.

All those factors make the stock an outstanding long-term bet for income seekers. And with $1,000, investors can buy 12 of the company's shares and still have some spare change.

2. Visa

Visa, a leading payment processing company, also offers a lot. Visa has benefited from the growing demand for digital payment methods and the declining use of cash and checks. Since the company makes money through the fees it charges for each transaction it facilitates, more fees equal higher revenue, all else equal.

Visa also benefits from a strong moat, even beyond its brand name. The company's ecosystem exhibits strong network effects: The more customers own cards bearing its logo, the more attractive it is for merchants to accept it as a form of payment.

Visa will continue to cash in on key long-term trends, including the growth of the e-commerce industry. And outside of countries like the U.S., where card penetration is mature, some regions worldwide still rely heavily on cash transactions.

Lastly, Visa is a terrific dividend stock. The company has increased its payouts by 378.6% over the past decade alone. Visa is attractive to both growth and income-oriented investors. Shares are changing hands for about $318 apiece, so $1,000 gets you three of them.

Prosper Junior Bakiny has positions in Berkshire Hathaway and Visa. The Motley Fool has positions in and recommends Berkshire Hathaway and Visa. The Motley Fool has a disclosure policy.