Bill Gates Portfolio: Top 5 Dividend Stock Picks

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.”