Warren Buffett has amassed an unlimited fortune over many years by investing in dividend shares. Though his personal firm, Berkshire Hathaway, doesn’t pay dividends, most of the corporations in its portfolio do.

I’m at the moment searching for methods to spice up my passive earnings. If I had a spare £10,000 to speculate, I believe this pair of Buffett shares may assist me obtain that objective. By splitting my funding evenly between the 2, I’d earn nearly £365 in annual dividend payouts at right now’s yields.

So, let’s discover the outlook for each firms.

Kraft Heinz

Meals and beverage producer Kraft Heinz (NASDAQ:KHC) owes its existence to Warren Buffett, who was the driving pressure behind the 2015 merger between Kraft and Heinz.

Though the billionaire has stated he overpaid for his stake within the tie-up, Berkshire nonetheless owns round a 3rd of the corporate’s shares. A 34% droop within the Kraft Heinz share value over 5 years means the shares may very well be higher worth right now for me. Plus, there’s a helpful 4.17% dividend yield on supply.

The corporate’s model portfolio includes well-known names together with Heinz ketchup, Philadelphia cream cheese, and Capri-Solar drinks. Model familiarity seems to be serving to the agency navigate the inflationary surroundings.

Following a 7.3% rise in internet gross sales throughout Q1 to $6.49bn, Kraft Heinz lifted its adjusted earnings forecast to $2.83-$2.91 per share. That’s increased than the corporate’s earlier goal of $2.67-$2.75 per share.

What’s extra, the enterprise has efficiently trimmed its internet debt pile over latest years. That’s particularly vital contemplating rates of interest proceed to rise. However there’s nonetheless extra work to do on this regard.

As well as, inflation stays a key danger. Though the group’s managed this problem nicely to date, weighing any additional value hikes in opposition to the threats posed by opponents like Unilever and Nestlé will stay a difficult balancing act for the foreseeable future.

Nonetheless, this dividend inventory appears good worth to me. If I had spare money, I’d purchase.

Johnson & Johnson

Healthcare big Johnson & Johnson (NYSE:JNJ) additionally options in Buffett’s portfolio, in addition to my very own. It’s a Dividend Aristocrat with an unbroken 61-year dividend development streak. At the moment, the inventory yields 3.08%.

Johnson & Johnson is the world’s largest healthcare firm. Its enterprise spans prescription drugs, medical know-how, and client merchandise. The corporate’s broadly considered a defensive funding resulting from strong demand for its services, even during times of financial turbulence.

The agency’s Q1 outcomes for 2023 had been blended. Worldwide gross sales elevated 5.6% to $24.7bn and every division reported development. As well as, the corporate boosted its full-year adjusted earnings forecast to $10.60-$10.70 per share, up from a earlier goal of $10.45-10.65.

Nevertheless, the group additionally reported a $68m internet loss, equating to 3 cents per share. That’s due to liabilities arising from most cancers claims regarding the corporate’s child talc merchandise. Johnson & Johnson faces ongoing reputational and authorized dangers from this litigation, however there are indicators the unlucky saga may very well be drawing to a conclusion.

In the end, I believe the enterprise has deep sufficient pockets to outlive its authorized troubles. In any case, it has a triple-A credit standing. With the share value down 14% in a yr, I believe the inventory may climb increased as soon as these difficulties are within the rear-view mirror.