×

Power Play: 2 dividend stocks for your portfolio

Johnson & Johnson's products
Chris Hondros | Getty Images
Johnson & Johnson's products

Legendary investor Warren Buffett tells CNBC on Monday he's not worried about the recent market sell-off and he's a more aggressive buyer when stocks are going down.

For Buffett, that's largely investing in dividend-paying stocks. Heartland Financial CIO Nancy Tengler tells "Power Lunch" that is a smart strategy and is one she has been following for years. "Dividends and sales don't lie, earnings sometimes do," Tengler said.

Read MoreBuffett: We need a big mattress for money in Europe

Two large-caps Tengler likes right now are Johnson & Johnson and Microsoft.

Johnson & Johnson "is still trading at a yield of 2.8 percent with 5-7 year historical dividend growth of 7 percent," Tengler said.

With Microsoft, Tengler indicates the tech giant has grown the dividend by 18.2 percent over the last 5 years.

Johnson & Johnson is up 3 percent this year, while Microsoft is down more than 7 percent.