Warren Buffett’s Berkshire Hathaway held a stock portfolio worth $284 billion in the second quarter. It’s full of industry-leading companies that have rock-solid financials, and many of these companies distribute a portion of their earnings in dividends to shareholders.

If you have some extra cash you don’t need for paying debts or expenses, here are two Buffett-approved dividend stocks you can buy with just $100.

1. Coca-Cola

Berkshire has held shares of Coca-Cola (KO -0.46%) for more than 30 years and still held 400 million shares through the second quarter. Based on Coca-Cola’s quarterly dividend payment of $0.485 per share, Berkshire is set to earn $776 million in passive income from the company over the next 12 months.

Coca-Cola stock is not going to outperform the broader market over the long term. Analysts expect the company to grow its earnings at an annualized rate of 5% in the coming years.

But it’s a perfect stock if all you’re looking for is extra dividend income. It currently offers a high forward dividend yield of 2.98%. That’s supported by a payout ratio of 68% based on 2024 earnings estimates, which the company has sustained in recent years.

There are a few reasons this is an outstanding dividend investment. Coke sells a simple product that is consumed at the rate of about 800 billion servings annually. It’s why Coca-Cola has been able to generate consistent profits for decades to fund a growing dividend for more than 60 years.

Moreover, there are still opportunities to grow around the world. Only 30% of the population in developed markets drinks one of the company’s products at least once per week. This leaves ample room to grow sales over the long term.

Coca-Cola has performed well in 2024 despite inflation and other macroeconomic headwinds hurting consumer spending. It’s on pace to grow adjusted sales almost 9% for the full year, according to the Wall Street consensus.

The stock’s forward price-to-earnings ratio (P/E) of 23 seems fair, and along with the high yield, offers solid value that should deliver a satisfactory return over the long term.

2. Kraft Heinz

Kraft Heinz (KHC 0.09%) owns several leading food brands like Oscar Mayer, Philadelphia cream cheese, and Lunchables meal kits, in addition to Kraft cheese and Heinz ketchup. It’s a consumer staple that generates fairly consistent sales every year.

While the company has reported weak sales amid inflationary headwinds, Berkshire continued to hold 325 million shares as of the second quarter. Kraft currently pays a quarterly dividend of $0.40 per share, so Berkshire is earning $520 million each year in passive income.

The negative consumer spending trends are hurting Kraft Heinz much more than Coca-Cola. The company reported a 2% year-over-year decline in adjusted sales in the third quarter, although sales volumes are stabilizing. For the full year, analysts expect the company to post a 5% increase.

An important opportunity for Kraft Heinz can be found in emerging markets, where it experienced an adjusted sales increase of nearly 5% year over year last quarter. Management also continues to drive cost cuts to boost margins.

Adjusted earnings per share are expected to increase by 9% in 2024, based on Wall Street‘s consensus. Management’s long-term goal is to drive margin expansion, which means earnings should grow faster than sales. This could lead to dividend increases.

Kraft Heinz has maintained a steady quarterly dividend of $0.40 in recent years, and the forward yield is sitting at an attractive 4.75%. It currently pays out about half of its adjusted earnings, so there is potential to grow the dividend over time. The high yield and low forward P/E of 11 might suggest the company is undervalued right now.