Bill Gates’ 5 Dividend Stocks

In this article, we discuss the 5 best dividend stocks according to Bill Gates. If you want to read our detailed analysis of Bill Gates’ investment philosophy, go directly and see Bill Gates’ 10 Dividend Stocks.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, we like undervalued, EBITDA-positive growth stocks, so we are checking out stock pitches like this emerging biotech stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now, let’s take a look at Bill Gates’ top 5 dividend holdings:

5. Waste Management, Inc. (NYSE:WM) 

Bill & Melinda Gates’ Stake Value: $2,610,764,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 10.93%
Number of Hedge Fund Holders: 39
Dividend Yield: 1.49%

Waste Management, Inc. (NYSE:WM) is an American waste management and environmental services company based in North America. The company offers services such as garbage disposal, recycling, and dumpster collection. Waste Management, Inc. (NYSE:WM) ranks fifth on our list of Bill Gates’ 10 dividend stocks. 

As of Q2 2021, Waste Management, Inc. (NYSE:WM) is the second-largest holding of Gates’ Foundation. The hedge fund holds over 18.6 million shares in the company, valued at over $2.6 billion. The company represents 10.93% of the hedge fund’s 13F portfolio.

In Q2 2021, Waste Management, Inc. (NYSE:WM) posted an EPS of $1.27, beating the estimates by $0.08. The company’s revenue of $4.48 billion represented a 25.8% growth from the prior-year quarter. Waste Management, Inc. (NYSE:WM) pays an annual dividend of $2.30 per share, yielding 1.49%. The company has a track record of 18 years of consistent dividend growth. In July, BMO Capital lifted its price target on Waste Management, Inc. (NYSE:WM) to $159, while keeping an ‘Outperform’ rating on the shares. In the past year, the stock returned 34.1%. 

As of Q2 2021, 39 hedge funds tracked by Insider Monkey have positions in Waste Management, Inc. (NYSE:WM), up from 32 in the previous quarter. The total value of these stakes is over $3.6 billion. After Bill & Melinda Gates Foundation, Impax Asset Management holds the most shares in the company, valued at $366.6 million.