5 Warren Buffett Stocks for Generating Passive Dividend Income Even If There's a Stock Market Sell-Off in 2025

If you're looking for market insight and investment ideas, Warren-Buffett-led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a good place to start.

Berkshire's long-term track record is impeccable -- a 19.8% compound annual gain from 1965 to 2023, compared to 10.2% for the S&P 500 (SNPINDEX: ^GSPC) -- including dividends.

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Most Berkshire holdings are dividend stocks that pass a portion of profits to shareholders. Dividend income can be especially useful during a stock market sell-off, by providing a way to generate a return without selling equities at lower prices.

Here's why Coca-Cola (NYSE: KO), American Express (NYSE: AXP), Visa (NYSE: V), Chevron (NYSE: CVX), and Kraft Heinz (NASDAQ: KHC) stand out as excellent dividend stocks to buy, no matter what the broader stock market does in 2025.

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A stable stalwart you can count on no matter what

When the S&P 500 and Nasdaq Composite flashed red during the DeepSeek-induced sell-off on Monday, old reliable Coca-Cola stock popped 3.2% as investors gravitated toward safe stocks.

Coke is far from a snazzy company, and it tends to underperform growth-driven rallies in the broader market. However, during times of uncertainty, Coke is precisely the kind of company investors can count on.

Coke's reliability stems from its business model and track record of dividend growth. Coke has a diverse portfolio of non-alcoholic beverage brands. Demand for these products can vary, but demand for these beverages is generally more recession-resistant than that for discretionary goods. The company has higher sales and operating income outside North America than within the continent, meaning the business isn't overly exposed to a single market. Throw in 62 consecutive years of dividend increases and a 3% yield, and Coke stands out as the ideal passive income powerhouse to buy and hold for decades to come.

Two near-perfect business models

Berkshire bought American Express more than 30 years ago. Today, it is one of the company's best investments, making up 16% of Berkshire's public equity portfolio.

Visa is a newer addition, making up a much smaller 0.9% of the portfolio.

There are key differences between the two companies. American Express is a closed-loop payment network, whereas Visa has an open-loop system. American Express issues credit to its clients through its own cards, often with higher annual fees, better perks, and more control over charges to merchants. But Visa partners with banks and other institutions, meaning it is a more pure-play payment processor that collects fees based on transaction volume and frequency. As a result, American Express has much higher revenue than Visa, but Visa has higher margins.

Both business models have their pros and cons. However, the general idea is that American Express must convince merchants and cardholders that its products are worth it. In contrast, the hands-off approach of an open-loop system can make it easier to expand.

The growth of global debt and credit card volumes and ongoing reduced dependence on cash has transformed American Express and Visa into high-octane growth stocks. Both companies have generated so much money that they've been able to increase their dividends and repurchase shares at rapid rates.

AXP Dividend data by YCharts.

People may spend less during a recession or economic slowdown, but that's only one aspect of American Express' and Visa's business model. American Express collects annual fees on its cards no matter what consumers do with them, and both companies make money every time a card is swiped or tapped, regardless of the transaction amount. This makes American Express and Visa compelling financial stocks to buy, even if there's a stock market sell-off.

High-yield stocks to jolt your passive income stream

Chevron has 37 consecutive years of dividend raises, making it a beacon of reliability in the oil patch. The integrated oil major has a diversified business and a highly efficient oil and gas production portfolio, meaning it can generate sizable profits even at lower oil prices. Throw in an impeccable balance sheet and a 4.2% dividend yield, and you get a top-tier dividend stock.

Berkshire began buying Chevron in the fourth quarter of 2020, ramping its position to a peak of 165.36 million shares in the third quarter of 2022. The position has come down since, but Chevron remains a core Berkshire holding -- currently its fifth largest by value.

Kraft Heinz has been a lousy performer as of late, with the stock price flat over the last five years. The packaged foods company cut its dividend in 2019 and has kept it the same since. But because the stock price has languished, Kraft Heinz sports an attractive yield of 5.5%.

The company isn't at the top of its game, but the valuation is dirt cheap, as industry-leading operating margins have made up for sluggish sales growth. Like Coke, Kraft Heinz's business model is inherently recession-resistant, making it a solid buy for risk-averse investors.

Buffett's lead is worth following on these five stocks

The stock market is all about trade-offs. Some companies don't pay dividends, instead pouring excess profits into the business. Others distribute nearly all of their earnings to shareholders through dividends. The key is investing in strong underlying businesses with a runway for growing dividends over time. Or, if a stock already has a high yield, ensure that the business isn't in decline, so that the dividend expense remains affordable.

Growth-focused investors may prefer American Express and Visa, while value and income folks may lean toward Coke, Chevron, and Kraft Heinz. Either way, all five dividend stocks are worth a closer look for long-term investors.

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American Express is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, and Visa. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.