Bill Gates’ Top 5 Dividend Stocks

In this article, we discuss top dividend stocks to buy according to billionaire Bill Gates. If you want to read our detailed analysis of Gates’ foundation and its performance over the years, go directly to read Bill Gates’ Top 10 Dividend Stocks. 

5. Caterpillar Inc. (NASDAQ:CAT)

Bill Gates’ Stake Value: $1,206,581,000
Dividend Yield as of November 17: 2.10%

Caterpillar Inc. (NASDAQ:CAT) is an American construction machinery and equipment company that specializes in diesel and natural gas engines. The Gates Foundation opened its position in the company with shares worth over $882.8 million during the third quarter of 2012. At the end of Q3 2022, the hedge fund owned over 7.3 million CAT shares worth $1.2 billion. The company represented 3.54% of Bill Gates’ portfolio.

Following the company’s Q3 earnings and its improving fundamentals, Citigroup raised its price target on Caterpillar Inc. (NASDAQ:CAT) in October to $235 with a Neutral rating on the shares.

Caterpillar Inc. (NASDAQ:CAT) is one of the top dividend stocks on our list as it has been raising its dividends consistently for the past 28 years. The company offers $1.20 per share in quarterly dividends with a dividend yield of 2.10%, as of November 17.

As of the end of the June quarter of 2022, 45 hedge funds tracked by Insider Monkey owned stakes in Caterpillar Inc. (NYSE:CAT), compared with 54 in the previous quarter. These stakes are collectively valued at over $3.25 billion.

Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q1 2022 investor letter. Here is what the firm had 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.”