Verizon Communications (VZ)

Verizon was a new addition to Buffett’s portfolio in 2021. And it’s a pretty chunky stake: At the end of Q3, Berkshire owned nearly 159 million shares of the telecom giant.

The company is a household name.

Its 4G LTE network covers 99% of the U.S. population. And while we’re still in the early stages of 5G adoption, more than 230 million people are already covered by Verizon’s 5G network.

Massive recurring revenue means Verizon is well-positioned to pay regular dividends. Right now, Verizon has a quarterly dividend rate of $0.64 per share, translating to an annual yield of 4.8%.

Of course, Verizon isn’t the highest yielder in the space. AT&T, for instance, yields an even juicier 7.6%.

Cell phone bills are on the rise. And what’s the old saying? If you can’t beat them, join them.

If you’re not happy with what you pay Verizon or AT&T every month, collecting dividends from these companies might be a small way to get even.

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too. Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Invest Now

Johnson & Johnson (JNJ)

When it comes to delivering recession-proof returns, few companies have done a better job than healthcare giant Johnson & Johnson.

The stock has been trending up for decades and for good reason. Johnson & Johnson’s business grows consistently through thick and thin.

Over the past 20 years, Johnson & Johnson’s adjusted EPS has increased at a steady pace of 8% annually.

And that means shareholders can look forward to higher dividends every year.

Johnson & Johnson announced its 59th consecutive annual dividend increase last April. The stock currently yields 2.5% — nearly twice as much as the average yield of the S&P 500.

The company boasts consumer staples found in any U.S. home: skin care products like Neutrogena, pain medications Tylenol and Motrin, Listerine, Band-Aids, and more.

In fact, Johnson & Johnson recently announced plans to spin off its consumer health segment into a separate company in order to unlock value. Once the split is complete, investors will be given shares in both companies and, in turn, receive dividend payments from both stocks.

That makes J&J a particularly timely and attractive inflation play. As of the most recent quarter, Berkshire owned about 327,000 shares in the company.

Store Capital (STOR)

Being a landlord is one of the oldest ways to earn a passive income.

If you want to collect rental income without worrying about the headaches that come with tenants, consider using real estate investment trusts — companies that own and manage income-producing real estate.

Buffett has a sizable stake in a REIT called Store Capital.

Store has a large portfolio consisting of investments in over 2,700 properties diversified across 49 states.

The company collects rent on these properties and passes it along to shareholders in the form of dividends. The stock is offering a handsome yield of 4.6% at the current price.

Store’s tenants tend to be leading national and regional companies with large revenue bases. Notably, one of the company’s top 10 tenants is movie theater giant AMC Entertainment Holdings, whose shares are always followed these days.

And because Store’s portfolio is leased to 529 tenants coming from 118 different industries, the REIT can maintain its dividend even if one tenant or industry enters a downturn.

As of Berkshire's latest portfolio disclosures, it owned roughly 24.4 million shares in Store.

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too. Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Invest Now

Make passive income your priority

Even if you’re not bullish on these dividend-paying stocks, generating regular income should be a top priority for risk-averse investors.

And you don’t have to limit yourself to the stock market to do that.

For instance, some popular investing services let you lock in a steady rental income stream by investing in premium commercial real estate properties — from R&D campuses in San Jose to industrial e-commerce warehouses in Baltimore.

You’ll gain exposure to high-end properties that big-time real estate moguls usually have access to.

And the best part? You'll receive regular passive income in the form of cash distributions without any headaches or hassles.

Get a piece of commercial real estate

Enhance your portfolio with high-return commercial real estate

First National Realty Partners is the #1 option for accredited investors seeking superior risk-adjusted returns in the grocery-anchored necessity-based retail space.

While commercial real estate has always been reserved for a few elite investors, outperforming the S&P 500 over a 25-year period, First National Realty Partners allows you to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.

Invest with First National Realty Partners now.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.