In times of volatility, investors can look for stocks that are trading at a discount, or they can check out stocks with strong dividends that will result in stable passive income over time. Warren Buffet knows a lot about dividend stocks. Over the years, a few dividend stocks have contributed to the out performance of the company.

The telecommunications giant, the large energy producer, and the large bank all have nice dividends. Investing $5,000 in U.S. Bancorp with a 3.4% dividend yield would generate about $3,100 in passive income over the course of five years. Not bad for mailbox money. Let's take a look at each stock.

Warren Buffett

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1. Verizon

At a time when he was selling more than buying, Buffett purchased the company at the end of 2020. It is also a classic Buffett value play, trading under 10 times earnings. After a strong quarter in which earnings and revenue beat expectations, and guidance for this year came in above analyst projections, the stock seems to have some traction.

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The company is making good progress with its 5G wireless internet initiative and within that are some new and exciting business lines such as network as a service, which is a digital subscription that enables a user to sync all of their electronics from an iPhone to another device. It's a very strong dividend stock because it has increased its dividend for 15 straight years.

2. Chevron

One of the best-performing stocks in the portfolio is Chevron, which is up more than 40% so far in 2022. The Russian invasion of Ukraine has caused oil prices to go up. American energy companies have become very valuable due to the fact that the U.S. and many other countries have banned oil and gas imports from Russia due to the war. The company currently trades at all-time highs.

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In the past, the company has been able to grow free cash flow even when the price of oil fell. The company recently raised its free cash flow projections and is planning to increase its share repurchases. The company has raised its dividends for 36 years in a row. It's fair for investors to wonder if a pullback is coming at some point, but it's in very good shape and is a great dividend stock.

3. U.S. Bancorp

One of the largest banks in the U.S. is U.S. Bancorp, with more than $564 billion of assets. The U.S. regional bank of choice is U.S. Bancorp, which survived the massive bank sell-off by Buffett and Berkshire. U.S. Bancorp has a top-notch commercial bank that caters to small businesses, as well as larger corporations through its unique payments business, which sets it apart from its peers. U.S. Bancorp will integrate its payment and commercial banking products in the future.

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Since 2010, U.S. Bancorp has generated strong annual returns on equity in excess of 14%, which is a good indicator of how much money the company has made on shareholder capital. Since 2010, U.S. Bancorp has increased its dividend every year. It is a bank that has consistently been among the top performers.