Bill Gates’ Current Portfolio: Top 5 Dividend Stocks

In this article, we will discuss top 5 dividend stocks in Bill Gates’ portfolio. If you want to read our detailed analysis of the Bill & Melinda Gates Foundation Trust’s investment strategies and their performance over the years, go directly to read Bill Gates’ Current Portfolio: Top 10 Dividend Stocks. 

5. Ecolab Inc. (NYSE:ECL)

Bill Gates’ Stake Value: $759,538,485
Dividend Yield as of February 22: 1.34%

Ecolab Inc. (NYSE:ECL) is a Minnesota-based chemicals company that specializes in the cleaning and hygiene of water in a variety of applications. On December 8, the company declared a 3.9% hike in its quarterly dividend to $0.53 per share. This marked the company’s 31st consecutive year of dividend growth. The stock has a dividend yield of 1.34%, as of February 22.

During the fourth quarter of 2022, Bill Gates’ hedge fund increased its position in Ecolab Inc. (NYSE:ECL) by 8%. The fund’s total stake in the company amounted to nearly $760 million. The company made up 2.12% of Bill Gates’ portfolio.

In February, Wells Fargo raised its price target on Ecolab Inc. (NYSE:ECL) to $175 with an Overweight rating on the shares, highlighting the company’s pricing power.

As of the close of Q4 2022, 47 hedge funds in Insider Monkey’s database owned stakes in Ecolab Inc. (NYSE:ECL), up from 42 in the previous quarter. These stakes have a total value of over $2 billion. Cantillon Capital Management is one of the company’s leading stakeholders in Q4.

ClearBridge Investments mentioned Ecolab Inc. (NYSE:ECL) in its Q3 2022 investor letter. Here is what the firm has to say:

“We have focused our valuation discipline to reduce exposure to higher-multiple stocks most at risk of multiple compression in the current environment. Along these lines, while we remain constructive on the high returns on invested capital Ecolab Inc. (NYSE:ECL) earns in its core business, over the years its diversification has diluted this segment’s importance, and we feel less comfortable defending the position at current valuations.”

4. Caterpillar Inc. (NYSE:CAT)

Bill Gates’ Stake Value: $1,761,631,770
Dividend Yield as of February 22: 1.99%

Caterpillar Inc. (NYSE:CAT) is an American manufacturing company that specializes in the production of construction equipment. The Gates Foundation has been investing in the company since the third quarter of 2012. In the most recent quarter, the hedge fund owned a CAT stake worth over $1.7 billion. The company represented 4.93% of Bill Gates’ portfolio.

In February, Credit Suisse lifted its price target on Caterpillar Inc. (NYSE:CAT) to $306 with an Outperform rating on the shares, appreciating the company’s performance last year.

Caterpillar Inc. (NYSE:CAT) currently pays a quarterly dividend of $1.20 per share and has a dividend yield of 1.99%, as of February 22. The company holds a 28-year streak of consistent dividend growth.

The number of hedge funds tracked by Insider Monkey owning stakes in Caterpillar Inc. (NYSE:CAT) grew to 50 in Q4 2022, from 43 in the previous quarter. These stakes have a total value of over $5 billion.

Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter. Here is what the firm has to say:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

3. Waste Management, Inc. (NYSE:WM)

Bill Gates’ Stake Value: $5,527,563,887
Dividend Yield as of February 22: 1.84%

Waste Management, Inc. (NYSE:WM) is a Texas-based company that offers environmental services to its consumers. At the end of Q4 2022, The Gates Foundation owned over $5.5 billion worth of stakes in the company, which made up 15.47% of the firm’s portfolio.

Waste Management, Inc. (NYSE:WM) is another top dividend stock in Bill Gates’ portfolio as the company has grown its dividends for 16 years in a row. The company offers a quarterly dividend of $0.70 per share and has a dividend yield of 1.84%, as of February 22.

As per Insider Monkey’s Q4 2022 database, 44 hedge funds owned investments in Waste Management, Inc. (NYSE:WM), up from 41 in the previous quarter. These investments are worth over $6.3 billion collectively. With over 2 million shares, Impax Asset Management was one of the company’s largest stakeholders in Q4.

Diamond Hill Capital mentioned Waste Management, Inc. (NYSE:WM) in its Q1 2022 investor letter. Here is what the firm has to say:

“We also initiated a position in Waste Management (NYSE:WM), one of the largest providers of waste collection services in the US. We believe it is a high-quality business with ownership of key landfill assets that provide pricing power over the long term. Its stock was trading at a discount to our estimate of intrinsic value due to short-term market concerns over an increase in growth investments—we expect these investments to be value-creating over the long term.”

2. Canadian National Railway Company (NYSE:CNI)

Bill Gates’ Stake Value: $6,517,808,320
Dividend Yield as of February 22: 2.03%

Canadian National Railway Company (NYSE:CNI) is a Canadian-based transport company that provides services in trucking and rail shipping. On January 24, the company hiked its quarterly dividend by 7.8% to C$0.79. Through this increase, the company extended its dividend growth streak to 23 years. The stock’s dividend yield on February 22 came in at 2.03%.

Canadian National Railway Company (NYSE:CNI) was the third largest holding of the Gates Fund in Q4 2022. The hedge fund owned over 54.8 million CNI shares, worth over $6.5 billion. The company accounted for 18.24% of Bill Gates’ portfolio.

As of the close of Q4 2022, 41 hedge funds tracked by Insider Monkey held stakes in Canadian National Railway Company (NYSE:CNI), worth over $13 billion collectively.

1. Microsoft Corporation (NASDAQ:MSFT)

Bill Gates’ Stake Value: $9,416,453,159
Dividend Yield as of February 22: 1.08%

Microsoft Corporation (NASDAQ:MSFT) tops our list of dividend stocks in Bill Gates’ portfolio. The company is the largest holding of Bill Gates and represented 26.3% of his portfolio. His hedge fund owned MSFT stake worth over $9.4 billion.

Microsoft Corporation (NASDAQ:MSFT) currently offers a quarterly dividend of $0.68 per share and has a dividend yield of 1.08%, as of February 22. The company has been raising its payouts consistently for the past 16 years.

At the end of Q4 2022, 259 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), down from 269 in the previous quarter. These stakes have a total value of over $58.6 billion. Ken Griffin and Terry Smith were some of the company’s leading stakeholders in Q4.

Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter. Here is what the firm has to say:

“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”

You can also take a look at 11 High Growth Energy Stocks to Buy and 10 High Growth Low Debt Stocks to Buy

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