Dividend Stocks Have Turned Warren Buffett's Portfolio into a Money-Making Machine. Here's How to Follow His Lead.

Much of Warren Buffett's wealth has come from his investments increasing in value over time. He's done a great job choosing quality companies that have gained market share and grown earnings. But some billionaire investor wins don't involve actual stock performance. In fact, these wins come in annually, no matter what the particular stock does.

I'm talking about Buffett's successes with dividend stocks. The chairman of Berkshire Hathaway considers passive income a key part of long-term investing, and these types of stocks have turned his portfolio into a money-making machine. Here's some great news: You don't have to invest billions to build your money-making portfolio. Let's find out how to follow Buffett's lead with an investment of any size.

First, let's consider Buffett's story. He's led Berkshire Hathaway to a compounded annual gain of nearly 20% over 57 years, largely beating the performance of the S 500. The benchmark index recorded a compounded annual gain of 9.9% in that period.

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Source Fool.com