Bill Gates’ High Conviction Dividend Growth Stocks Revisited

#1 Canadian National Railway (USA) (NYSE:CNI)

– Elite Investors with Long Positions (as of June 30): 21
– Aggregate Value of Elite Investors’ Holdings (as of June 30): $1.45 billion
– Percentage of Shares Owned by Elite Investors (as of June 30): 3.1%

Canadian National Railway is the largest railroad in Canada and has a de-facto monopoly on rail traffic in many areas of the country.  The company has steadily delivered solid profits for its shareholders since its founding in 1918. The railroad performed admirably during the financial crisis, as earnings per share fell from $1.70 in 2007 to only $1.52 in 2009.

Canadian National Railway pays a dividend yield of 1.55% and trades at an attractive forward P/E of 17.49. Shares of the company fell by a modest 1.28% in the third quarter as the broader market sold off.

Gates owns 17.13 million shares of Canadian National Railway, worth $989 million at the end of June. Canadian National Railway make up 5.8% of Gates’ portfolio. Other elite investors long Canadian National Railway include Steve Cohen‘s Point72 Asset Management and Louis Bacon’s Moore Global Investments.

Disclosure: None