In this article, we discuss Bill Gates’ top 10 dividend stocks. You can skip our detailed analysis of the Bill & Melinda Gates Foundation’s performance, and go directly to read Bill Gates Portfolio: Top 5 Dividend Stock Picks.
Bill & Melinda Gates Foundation was established in 2000 with the purpose to improve the well-being of humankind. The fund aims to prevent and solve social problems people are confronted with today. Since 2000, the foundation has spent over $53.8 billion on its various programs, ranging from public health to economic development. Currently, Mark Suzman is serving as the Chief Executive Officer of the firm.
In 2021, the Gates Foundation provided charitable support worth over $6.7 billion for global development, global health, and gender equality, among several other causes. Currently, the foundation is working on 41 program strategies to promote equity around the globe. In July, Bill Gates announced to donate $20 billion to the foundation as the fund plans to enhance its spending, according to a report by CNBC. In a tweet, Gates mentioned that the world is confronted with a myriad of challenges such as climate change, the war in Ukraine, and the pandemic.
The Gates Foundation announced to grow its spending from nearly $6 billion per year to $9 billion by 2026, as reported by GatesNotes.
As of the end of Q2 2022, the Bill & Melinda Gates Foundation had a 13F portfolio valued at over $17.6 billion, down from $19.7 billion in the previous quarter. The hedge fund had major investments in industrial goods and finance sectors, with other industries making up significant portions of the portfolio. In addition to this, the fund owned stakes in dividend stocks like Walmart Inc. (NYSE:WMT), Caterpillar Inc. (NASDAQ:CAT), and Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF).
Bill Gates
Our Methodology:
For this list, we chose dividend stocks from Bill & Melinda Gates Foundation’s Q2 2022 13F portfolio. The stocks are ranked according to their yields.
Bill Gates Portfolio: Top 10 Dividend Stock Picks
10. Microsoft Corporation (NASDAQ:MSFT)
Dividend Yield as of August 25: 0.90%
Bill Gates’ Stake Value: $242,607,000
Bill Gates resumed his position in Microsoft Corporation (NASDAQ:MSFT) during the third quarter of 2021 after selling a rather hefty stake worth $943.5 million in the second quarter of 2019. His hedge fund currently owns 944,620 MSFT shares, valued at over $242.6 million. The company represented 1.37% of the fund’s portfolio.
On June 14, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.62 per share, with a dividend yield of 0.90%, as of August 25. The company is one of the most stable tech companies to pay dividends to shareholders. It has been raising its dividends consistently for the past 15 years.
In July, BMO Capital raised its price target on Microsoft Corporation (NASDAQ:MSFT) to $320 with an Outperform rating on the shares, as the company’s management affirmed double-digit constant currency growth and strong booking for the next fiscal year.
Microsoft Corporation (NASDAQ:MSFT) was the most popular buy among elite funds in Q2 2022, as 258 hedge funds owned stakes in the company, valued at over $56 billion. Fisher Asset Management owned the largest position in the tech giant in Q2, with stakes valued at over $7.3 billion.
In addition to Walmart Inc. (NYSE:WMT), Caterpillar Inc. (NASDAQ:CAT), and Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), MSFT is another popular dividend stock in Bill Gates’ portfolio.
Carillon Tower Advisers mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter. Here is what the firm has to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
9. Ecolab Inc. (NYSE:ECL)
Dividend Yield as of August 25: 1.20%
Bill Gates’ Stake Value: $671,382,000
Ecolab Inc. (NYSE:ECL) is a Minnesota-based food safety company that provides services related to water treatment, purification, cleaning, and hygiene. The company holds one of the strongest dividend policies, offering dividends to shareholders on its common stock for 85 consecutive years. In addition to this, it has been raising its payouts consistently for the past 30 years. The company currently pays a quarterly dividend of $0.51 per share, with a dividend yield of 1.20%, as of August 25.
The Gates Foundation started investing in Ecolab Inc. (NYSE:ECL) during the third quarter, purchasing shares worth nearly $283 million. In Q2 2022, the hedge fund owned over 4.3 million ECL shares, worth over $671.3 million. The company was the fifth-largest holding of the hedge fund, accounting for 3.79% of its portfolio.
Highlighting the company’s positive earnings in its recent quarter, Deutsche Bank set a $180 price target on Ecolab Inc. (NYSE:ECL), with a Buy rating on the shares.
As of the close of Q2 2022, 43 hedge funds in Insider Monkey’s database owned stakes in Ecolab Inc. (NYSE:ECL), down from 47 in the previous quarter. The collective value of these stakes is over $1.7 billion.
Baron Funds mentioned Ecolab Inc. (NYSE:ECL) in its Q1 2022 investor letter. Here is what the firm has to say:
“Lastly, we added to our position in the leading water, hygiene and infection prevention company, Ecolab Inc. (NYSE:ECL), as the stock sold off on concerns over rising raw material costs. We believe the sell-off is overdone as Ecolab’s strong competitive positioning and proven pricing power would enable it to offset the rising costs (though with a lag). We think that the company will continue benefiting from the secular growth trends towards sustainability, while still having a long runway for growth with only an 8% share of its estimated $147 billion addressable market.”
8. Waste Management, Inc. (NYSE:WM)
Dividend Yield as of August 25: 1.50%
Bill Gates’ Stake Value: $2,850,579,000
Waste Management, Inc. (NYSE:WM) is an environmental services company that mainly does business in comprehensive waste. The company has been a part of the Bill & Melinda Gates Foundation since the third quarter of 2012 when the hedge fund purchased roughly $600 million worth of stake in the company. In Q2 2022, the hedge fund owned a WM stake worth over $2.8 billion, which accounted for 16.12% of its 13F portfolio.
On August 23, Waste Management, Inc. (NYSE:WM) announced a quarterly dividend of $0.65 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 15 years and has a 5-year dividend CAGR of about 6%. As of August 25, the stock’s dividend yield came in at 1.50%.
In July, BMO Capital maintained its Market Perform rating on Waste Management, Inc. (NYSE:WM), highlighting the company’s favorable price and volume outlook.
As per Insider Monkey’s Q2 2022 database, 37 hedge funds in Insider Monkey’s database owned stakes in Waste Management, Inc. (NYSE:WM), compared with 40 a quarter earlier. These stakes are collectively valued at over $3.7 billion. In addition to Bill Gates, Ric Dillon, Cliff Asness, and Ian Simm were some of the company’s prominent stakeholders in Q2.
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.”
7. Walmart Inc. (NYSE:WMT)
Dividend Yield as of August 25: 1.66%
Bill Gates’ Stake Value: $367,276,000
Walmart Inc. (NYSE:WMT) remained popular among elite funds in Q2 2022, according to Insider Monkey’s data. 67 hedge funds owned stakes in the company in Q2, growing from 60 in the previous quarter. These stakes hold a collective value of over $3.78 billion.
At the end of Q2 2022, Walmart Inc. (NYSE:WMT) accounted for 2.07% of the Bill & Melinda Gates Foundation’s portfolio. The hedge fund has been investing in the company for over a decade now. It owned over 3 million WMT shares in Q2, valued at over $367.2 million. The company was the sixth-largest holding of the Gates Foundation.
Walmart Inc. (NYSE:WMT) has been raising its dividends consistently since 1974. It currently pays a dividend of $0.56 per share, with a dividend yield of 1.66%, as of August 25. Its payout ratio is also safe at 47.8%.
In August, Morgan Stanley raised its price target on Walmart Inc. (NYSE:WMT) to $150, with an Overweight rating on the shares, appreciating the company’s top-line core momentum.
6. Weber Inc. (NYSE:WEBR)
Dividend Yield as of August 25: 1.80%
Bill Gates’ Stake Value: $18,025,000
Weber Inc. (NYSE:WEBR) manufactures charcoal, gas, and electric outdoor grills with related accessories. The Gates Foundation initiated its position during the third quarter of 2021, buying shares worth nearly $44 million. In Q2 2022, the hedge fund owned 2.5 million WEBR shares, worth over $18 million. The company represented 0.1% of the hedge fund’s portfolio.
Weber Inc. (NYSE:WEBR) started paying dividends to shareholders in November 2021. It offers a quarterly payout of $0.43 per share and has a dividend yield of 1.80%, as of August 25. It can be a good addition to dividend portfolios in addition to other stable stocks like Walmart Inc. (NYSE:WMT), Caterpillar Inc. (NASDAQ:CAT), and Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF).
At the end of Q2 2022, 4 hedge funds tracked by Insider Monkey owned stakes in Weber Inc. (NYSE:WEBR), up from 2 a quarter earlier. These stakes hold a collective value of over $18.6 million. Citadel Investment Group was one of the company’s leading stakeholders in Q2.
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Disclosure. None. Bill Gates Portfolio: Top 10 Dividend Stock Picks is originally published on Insider Monkey.
