2 Warren Buffett Dividend Stocks to Buy Now

Warren Buffett is known for his long-term investing strategy, and his method led Berkshire Hathaway to six decades of market-beating performance. One key component is buying shares of quality companies that have the ability and desire to reward their shareholders with passive income. Buffett likes these dividend stocks, particularly those that stick to it over the years and even increase the payments.

The billionaire has held two in particular for many years, and it's proven to be a winning bet for him as well as for Berkshire Hathaway shareholders. Though Buffett retired and handed the investing responsibilities over to Greg Abel at the start of this year, these stocks remain at the heart of the portfolio. And this could continue, as Abel has expressed his interest in following Buffett's investing principles.

Let's check out these two Warren Buffett dividend stocks, which remain excellent buys today.

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1. Coca-Cola

Coca-Cola (NYSE: KO) almost needs no introduction. The company is present in more than 200 countries and serves up a variety of beverages that are household names, from its eponymous drink to Minute Maid juices, Fuze tea, and Dasani water. The world's biggest nonalcoholic beverage maker has a solid brand moat, or competitive advantage, offering classics that consumers love -- Buffett is a big fan of companies with strong moats. And Coca-Cola has also adapted to developing tastes and the needs of individual markets. All of that has helped the beverage giant build a long track record of earnings growth.

And this earnings strength, with high levels of free cash flow, means Coca-Cola has the financial power to offer dividends and dividend growth.

KO Free Cash Flow data by YCharts

Since Coca-Cola has raised its dividend for more than 50 years, making it a Dividend King, dividend growth is clearly a priority for the company -- and this suggests the beverage company may continue along the same path. Coca-Cola pays a dividend of $2.12, representing a dividend yield of 2.7%. And over time, this could add significantly to your investment winnings. Right now, trading for 24x forward earnings estimates, Coca-Cola is reasonably priced, making it an excellent Buffett-approved buy.

2. American Express

American Express (NYSE: AXP) is a payment card giant, and what makes it particularly interesting in any market environment is the fact that it primarily serves high-income individuals. This makes the company less vulnerable to economic downturns and various uncertainties.

The company has seen earnings continue to climb, and in the recent quarter, both revenue and earnings per share advanced in the double digits. Importantly, card member spending, with 9% growth, marked its best performance in three years. I also like the fact that 66% of new accounts acquired were from Millennial and Gen Z consumers, showing younger people are choosing American Express. This suggests growth may continue in the years to come.

Buffett has been a longtime investor in American Express and has expressed his appreciation for its dividend payments. From 1995, when Berkshire Hathaway completed its American Express purchase, to 2022, Berkshire Hathaway's annual dividends from the company grew from $41 million to $302 million, Buffett wrote in a letter to shareholders, adding "those checks... seem highly likely to increase."

And like Coca-Cola, American Express has the financial strength to continue paying and increasing its dividend. The company today pays a dividend of $3.80, representing a dividend yield of 1.2%.

Today, American Express also offers investors an interesting buying opportunity. The stock trades for 17x forward earnings estimates, down from more than 24x estimates at the end of last year. This is a very reasonable price for a company with a well-established market position, ongoing growth, and a commitment to dividend payments. American Express increased its quarterly dividend payments by 58% over the past three years. All of this makes this Warren Buffett dividend favorite a fantastic stock to buy right now.

American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends American Express and Berkshire Hathaway. The Motley Fool has a disclosure policy.