In this article, we discuss Bill Gates’ top 5 dividend stocks. If you want to read our detailed analysis of the Bill & Melinda Gates Foundation’s performance, go directly to read Bill Gates Portfolio: Top 10 Dividend Stock Picks.
5. Canadian National Railway Company (NYSE:CNI)
Dividend Yield as of August 25: 1.82%
Bill Gates’ Stake Value: $1,156,038,000
Canadian National Railway Company (NYSE:CNI) is a Montreal-based freight railway, controlling over 31,000 km of track in Canada and North America. The company has been a part of the Gates Foundation since 2012. In Q2 2022, the hedge fund sold roughly $600 million worth of stake in the company, reducing its position by 22%. The fund’s total stake in the company amounted to over $1.15 billion in Q2, which represented 6.53% of its 13F portfolio.
Canadian National Railway Company (NYSE:CNI) has raised its dividends 22 years in a row at an average annual rate of 18%. It currently pays a quarterly dividend of C$0.7325 per share, with a dividend yield of 1.82%, as of August 25.
In July, National Bank raised its price target on Canadian National Railway Company (NYSE:CNI) to C$166 and maintained a Sector Perform rating on the shares.
At the end of Q2 2022, 41 hedge funds in Insider Monkey’s database owned stakes in Canadian National Railway Company (NYSE:CNI), growing from 38 in the previous quarter. These stakes are valued at over $7.4 billion. Among these funds, TCI Fund Management was the company’s leading stakeholder in Q2.
4. FedEx Corporation (NYSE:FDX)
Dividend Yield as of August 25: 2.03%
Bill Gates’ Stake Value: $121,145,000
FedEx Corporation (NYSE:FDX) is an American transport company that mainly focuses on e-commerce and related services. The company has been raising its dividends consistently for the past 21 years and has a 5-year dividend CAGR of 13.4%. It currently pays a quarterly dividend of $1.15 per share, with a dividend yield of 2.03%, as of August 25.
Bill Gates started investing in FedEx Corporation (NYSE:FDX) in the third quarter of 2012, purchasing shares worth roughly $256 million. In Q2 2022, the hedge fund owned 534,362 FDX shares, with a total value of over $121 million. The company represented 0.68% of the fund’s portfolio.
In July, BofA raised its price target on FedEx Corporation (NYSE:FDX) to $287 with a Buy rating on the shares, acknowledging the company’s improvement goals.
The number of hedge funds tracked by Insider Monkey owning stakes in FedEx Corporation (NYSE:FDX) grew to 63 in Q2 2022, from 52 in the previous quarter. The collective value of these stakes is over $1.75 billion. Ken Griffin and Israel Englander were the company’s most prominent stakeholders in Q2.
3. Caterpillar Inc. (NASDAQ:CAT)
Dividend Yield as of August 25: 2.44%
Bill Gates’ Stake Value: $1,314,532,000
Caterpillar Inc. (NASDAQ:CAT) is an American multinational construction and machinery equipment company. The company was a part of 45 hedge fund portfolios in Q2 2022, compared with 54 in the previous quarter. The stakes owned by these funds hold a value of over $3.25 billion.
In August, Credit Suisse appreciated the strong pricing power of Caterpillar Inc. (NASDAQ:CAT) and sees strong demand across its all segments. In view of this, the firm raised its price target on the stock to $236 with an Outperform rating on the shares.
Caterpillar Inc. (NASDAQ:CAT) was the third largest holding of the Bill & Melinda Gates Foundation in Q2, owning stakes worth over $1.3 billion. The company represented 7.43% of the hedge fund’s 13F portfolio.
On June 8, Caterpillar Inc. (NASDAQ:CAT) declared a quarterly dividend of $1.20 per share, up 8% from its previous dividend. This was the company’s 28th consecutive year of dividend growth. In addition to this, it has been paying dividends to shareholders for the past 89 years. As of August 25, the stock’s dividend yield came in at 2.44%.
Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q1 2022 investor letter. Here is what the firm has to say:
“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”
2. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of August 25: 2.98%
Bill Gates’ Stake Value: $135,205,000
United Parcel Service, Inc. (NYSE:UPS) is a Georgia-based multinational shipping & receiving and supply chain management company. The company has been raising its dividends consistently for the past 12 years. It pays a quarterly dividend of $1.52 per share, with a dividend yield of 2.98%, as recorded on August 25.
Bill Gates initiated his position in United Parcel Service, Inc. (NYSE:UPS) in the fourth quarter of 2014, purchasing shares worth over $503 million. In Q2 2022, the hedge fund owned 740,689 UPS shares, valued at over $135.2 million. The company represented 0.76% of the hedge fund’s portfolio.
In July, Wells Fargo appreciated the quarterly earnings of United Parcel Service, Inc. (NYSE:UPS) despite a challenging volume environment. In view of this, the firm set a $223 price target on the stock while maintaining an Overweight rating on the shares.
As of the close of Q2 2022, 38 hedge funds in Insider Monkey’s database owned stakes in United Parcel Service, Inc. (NYSE:UPS), down from 50 in the previous quarter. These stakes hold a collective value of over $613 million.
Mayar Capital mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q2 2022 investor letter. Here is what the firm has to say:
“UPS has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”
1. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)
Dividend Yield as of August 25: 4.05%
Bill Gates’ Stake Value: $343,550,000
A Mexican multinational beverage company, Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) pays a quarterly dividend of Ps 0.67875 per share, with a dividend yield of 4.05%.
Bill & Melinda Gates Foundation has been investing in the company since 2012. In Q2 2022, the hedge fund did not change its position in the company, owning stakes worth over $343.5 million. The company accounted for 1.94% of the hedge fund’s portfolio.
In July, Barclays lifted its price target on Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) to $65 with an Overweight rating on the shares, appreciating the company’s continued volume momentum in Q2.
As of the close of Q2 2022, 6 hedge funds in Insider Monkey’s database owned stakes in Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), up from 5 in the previous quarter. The collective value of these stakes is over $460.8 million.
You can also take a look at 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins and 10 Dividend Stocks to Buy According to Steve Cohen’s Point72 Asset Management
