From Yahoo Finance: 2025-06-19 09:38:00

Warren Buffett’s advice on making money while you sleep emphasizes the importance of investing in high-quality dividend stocks. These stocks provide a reliable stream of passive income, allowing investors to gradually shift from working for money to letting their money work for them. Buffett’s own portfolio includes well-known dividend payers like Coca-Cola, which yielded nearly $776 million in dividends to Berkshire Hathaway in 2024.

While not currently in Buffett’s portfolio, Verizon offers a substantial 6.5% dividend yield, making it an attractive investment opportunity. Apple, one of Berkshire Hathaway’s top holdings, may have a modest dividend yield, but its consistent growth and innovative approach make it a reliable source of income and capital appreciation. Ford, despite its lackluster stock performance, boasts a nearly 6% dividend yield and potential for growth under new leadership.

Buffett’s strategy focuses on the quality of the business rather than chasing the highest yields. He looks for companies with durable competitive advantages, stable earnings, and prudent management. To follow in Buffett’s footsteps, investors should prioritize consistency, business quality, diversification, and reinvesting dividends. By building a portfolio of high-quality dividend stocks like Buffett’s favorites – Coca-Cola, Procter & Gamble, and Apple – investors can achieve financial freedom and passive income even while they sleep.

Read more: 5 Stocks To Invest Like Buffett