Centi-Billionaire Bill Gates’ Top 5 Dividend Stocks

4. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50
Bill & Melinda Gates Foundation Trust’s Equity Stake: $2.01 Billion
Dividend Yield 1.79%

Caterpillar Inc. (NYSE:CAT) is one of Bill Gates’ top dividend stocks that benefits from a booming economy. The industrial company manufactures and sells construction mining equipment for highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

Increased economic activities in the aftermath of the pandemic have translated to strong demand for Caterpillar Inc. (NYSE:CAT)’s equipment, including compactors, road reclaimers, and forestry machines. Caterpillar Inc. (NYSE:CAT) pays a quarterly dividend of $1.30 a share with a yield of 1.79%

Bill & Melinda Gates Foundation Trust has been buying and selling shares in the company since 2012, benefiting greatly from the 34-year dividend history. The Trust held stakes worth $2.01 billion worth of stakes in Q3 2023.

At the end of the third quarter of 2023, Insider Monkey’s database revealed that 50 hedge funds retained stakes in Caterpillar Inc. (NYSE:CAT), maintaining a value of $4.8 billion. This was consistent with the previous quarter’s holdings valued at $2.5 billion.

In its Q3 2023 investor letter, Diamond Hill Capital, an asset management firm, featured Caterpillar Inc. (NYSE: CAT) among the highlighted stocks. The firm shared the following insights:

“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”

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