Half of Bill Gates' investment is in MSFT, CNI & CAT
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Do billionaires love dividend stocks? Absolutely! Famous billionaire investors like Warren Buffett and Ken Griffin are prime examples. Their portfolios are loaded with dividend stocks.
Bill Gates is no exception. Although he doesn't run a listed company or a hedge fund like Buffett or Griffin, he's donated a ton of money to the Bill & Melinda Gates Foundation.
More than half of this charity's $42 billion investment portfolio is in these three dividend stocks.
1.Microsoft
It's no surprise that $Microsoft(MSFT)$ is Gates' favorite stock. After all, he co-founded this tech giant with Paul Allen and led it for years. Microsoft remains Gates Foundation's largest holding, accounting for 33.98% of its portfolio as of 2023.
Many tech companies don't pay dividend, but Microsoft is an exception. The company started paying dividend in 2003 and has increased by nearly 168% in the past 10 years. Sure, the dividend yield is only 0.74%, but that's mainly because the stock price has skyrocketed 10 times in the past 10 years and jumped nearly 60% in the past 12 months.
2.Canadian National Railway
The Gates Foundation doesn't just invest in tech stocks like Microsoft. $Canadian National Railway(CNI)$ is its third-largest holding, accounting for nearly 16.3% of its portfolio.
CNI's operations aren't just in Canada,it also owns around 20,000 miles of rail lines in the central United States, along with other transportation and logistics services.
The company has increased its dividend for 28 consecutive years, with the latest hike of 7% in the third quarter of 2024, giving it a dividend yield of 1.94%.
3. Caterpillar
Equipment manufacturer $Caterpillar(CAT)$ is the Gates Foundation's fifth-largest holding, accounting for 5.14% of its portfolio. Together, these three dividend stocks make up a whopping 55.41% of the foundation's investments.
The foundation first bought into Caterpillar in the fourth quarter of 2005 and last increased its stake in the fourth quarter of 2013, but it sold about 24% of its holding in the first quarter of 2022. Caterpillar has paid dividend every quarter since 1933 and has increased for 29 consecutive years, giving it a dividend yield of 1.55%.
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