Centi-Billionaire Bill Gates’ Top 15 Dividend Stocks

Published on December 21, 2023 at 9:28 am by Ruchi Gupta in Dividend Stocks, Hedge Funds, News

In this article, we discuss centi-billionaire Bill Gates’ top 15 dividend stocks. You can skip our detailed analysis of Bill Gates’ investment philosophy and his major investments, and go directly to read Bill Gates’ Top 5 Dividend Stocks.

Every investor dreams of accumulating higher returns and making massive profits while investing in the equity markets. While the focus is always on gaining from the share value appreciation, it’s not the only way to book profits in the stock markets. Investing in dividend stocks offers one of the best ways of reaping a steady and consistent source of income even when the overall market is under pressure.

The best dividend stocks are companies with a strong foothold and solid presence in their respective industries. Nevertheless, dividend stocks are broadly classified into two. Dividend growth stocks are of established companies that have achieved maturity peak. While such companies may not offer higher yields than companies in the same sector, they are cherished as they consistently increase their dividend payouts.

On the other hand, high-yield dividend stocks may keep their rate the same as they are already paying much more. Knowing which stock to invest in for dividends can always be challenging, given the myriads of companies offering such payouts. However, that should never be the case when one knows where to look for.

One of the best ways of discovering the best dividend stocks for steady income entails following what professionals do. Bill Gates has always been a staunch supporter of technology, given its potential to drive positive change. It is a picture well painted by technology stocks accounting for the most significant portion of the Bill and Melinda Gates Foundation Trust.

Ranked as one of the wealthiest people in the world, Gates also has a well-documented affinity for pursuing dividend income in the equity markets. Therefore, tracking and following what Gates does and invests in through the Trust is one of the best ways of gaining a head start in investing for dividends.

Investing in dividend stocks has always been one of the billionaire investor strategies for generating reliable passive income for supporting a myriad of philanthropic activities. The Bill and Melinda Gates Foundation finances various global issues, including healthcare, poverty alleviation education, and access to information technology. The Trust also invests in endowments to generate much-needed returns to support philanthropic efforts.

As the Trust expands its footprint to reach millions of people in low-income countries worldwide, it has increased its focus and investments in the top dividend stocks that generate consistent dividend income. The investment strategy has allowed the foundation to generate sufficient returns to be able to spend over $53 billion in grant donations and other humanitarian activities.

While Gates generates a staggering $464.5 million from his dividend portfolio, most of the gains are based on picking companies with strong and growing dividend yields. Focusing on solid yields rather than high yields affirms the Bill and Melinda Gates Foundation’s affinity for sustainable long-term income streams. The Coca-Cola Company (NYSE:KO), Apple Inc. (NASDAQ:AAPL), and JPMorgan Chase & Co. (NYSE:JPM) are some of the companies that Gates has always turned to, given their track record in paying dividends.

Diversification has also been an important strategy that Gates has always relied on, even as he pursued dividend income in the markets. This is evident by the Bill and Melinda Gates Foundation Trust investing in various sectors, including technology. The investment strategy has allowed the billionaire investor to generate consistent dividend income regardless of the prevailing economic situation.

The Federal Reserve hiking interest rates to 5.25% is already putting pressure on growth stocks, especially in the technology sector. With the high-interest rate environment expected to remain in place for much longer, growth stocks may have to contend with high-interest expenses from bonds, loans, and convertible debt.

Increased interest expenditure from various financing options is likely to pressure companies’ earnings, which could affect dividend offering allocations. Money losing technology stocks remain the most vulnerable in a high-interest rate environment as they are the ones that raise significant capital to sustain research and development operations.

On the other hand, financial companies are expected to remain resilient as they make more money on high-interest rates on lending to people, companies, and other businesses. Therefore, diversifying an investment portfolio beyond technology stocks and into financials and consumer goods sectors that perform well amid rising interest rates is a sure way of safeguarding passive income through dividends.

Our Methodology

Bill Gates concentrates most of his holdings on stocks with a track record of growing and paying dividends over time. Likewise, we have analyzed 13F Fillings and selected top dividend stocks in Bill Gates’ portfolio as of Q3 2023. The stocks are ranked in terms of stake value. The chosen stocks vary by size and industry. Still, they are all well positioned to generate long-term dividend income amid the high-interest rate environment going by their impressive payout record. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Bill Gates’ Top Dividend Stocks

15. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 109

Bill & Melinda Gates Foundation Trust’s Equity Stake: $4.29 Million

Dividend Yield 2.52%

JPMorgan Chase & Co. (NYSE:JPM) is one of Bill Gates top dividend stocks offering exposure to the financial sector. Operating as a financial services company, it provides deposit and lending products.

JPMorgan Chase & Co. (NYSE:JPM) is the latest addition to the Bill & Melinda Gates Foundation Trust after purchasing $4.29 million stakes in Q3 2023. JPMorgan Chase & Co. (NYSE:JPM) is one of the dividend aristocrats that has been paying dividends for 33 years.

Currently, it offers a $1.05 quarterly dividend and a 2.52% dividend yield and is well poised to benefit from the high-interest rate environment by generating more earnings from interest payments on loans.

As of September 2023, 109 out of the 910 hedge funds polled by Insider Monkey had held a stake in the bank, up from 106 in the preceding quarter. JPMorgan Chase & Co. (NYSE:JPM)’s leading investor in Q3 was Ken Fisher’s Fisher Asset Management, which owned 11.3 million shares worth $1.6 billion.

14. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 55

Bill & Melinda Gates Foundation Trust’s Equity Stake: $5.57 Million

Dividend Yield 1.47%

Eaton Corporation plc (NYSE:ETN) is one of Bill Gates’ investment plays in the industrial sector, operating as a power management company. Eaton Corporation plc (NYSE:ETN) offers electrical components, industrial components, power distribution, and assemblies.

The opening of the global economy following the COVID-19 pandemic has translated into booming business for industrial companies. Eaton Corporation plc (NYSE:ETN) is up by about 48% for the year and continues to generate passive income for shareholders with a quarterly dividend of $0.86 a share and a 1.47% yield. The Gates Trust acquired stakes worth $5.57 million in the company in Q3, impressed by the company’s 33-year dividend-paying history and share price gain.

During September 2023, 55 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Eaton Corporation plc (NYSE:ETN)’s shares. In the same quarter, Philippe Laffont’s Coatue Management was the firm’s significant shareholder, as it owned 3.7 million shares worth $808 million.

13. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 134

Bill & Melinda Gates Foundation Trust’s Equity Stake: $9.04 Million

Dividend Yield 0.49%

Gates further affirmed his interest in technology stocks by investing in Apple Inc. (NASDAQ:AAPL) in the third quarter. The company has made a name for itself in developing and selling smartphones, wearables, personal computers, and tablets.

Apple Inc. (NASDAQ:AAPL) has always rewarded investors with dividends for 34 years, affirming its status as one of the most sought-after dividend aristocrats. Apple Inc. (NASDAQ:AAPL) currently offers a 0.49% yield with a quarterly dividend of $0.24 a share. Bill & Melinda Gates Foundation Trust opened a new position worth $9.04 million in the company in Q3 2023.

At the end of the third quarter of 2023, 134 hedge funds in the Insider Monkey database held stakes in Apple Inc. (NASDAQ:AAPL), compared to 135 in the previous quarter.

In its Q3 2023 investor letter, Baron Funds highlighted a few stocks, and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“After a strong start to the year, shares of Apple Inc. partially retraced their gains this quarter. Mixed second calendar quarter financial results, with iPhone, iPad, and Wearables revenue coming in just shy of consensus expectations, coupled with elevated investor concerns about the macro economy and potential weakness in consumer spending later this year, pressured shares. Despite these quarterly fluctuations in product sales, we are encouraged by several long-term trends, including: (1) revenue from higher-margin services like the App Store, iCloud, and Apple Pay, which are growing faster than the overall business, driving better revenue visibility and higher free-cash-flow (FCF) margins; (2) continued gains in global market share in smartphones, wearables, and other hardware categories; and (3) consistent returns of capital to shareholders via share repurchases and dividends. On top of these trends in the core business, Apple is thoughtfully investing in new categories like augmented reality, search, financial services, and streaming media content. We took advantage of weakness in the quarter to add to our position in Apple.”

12. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 18

Bill & Melinda Gates Foundation Trust’s Equity Stake: $83.49 Million

Dividend Yield 3.60%

Hormel Foods Corporation (NYSE:HRL) is a consumer defensive company that develops, processes, and distributes meat, nuts, and other food products to retail food services and commercial customers.

Hormel Foods Corporation (NYSE: HRL) is one of Bill Gates’ top dividend stocks with a 31-year payout history. The company currently pays a $0.28 quarterly dividend with a 3.60% dividend yield. Bill & Melinda Gates Foundation Trust has held stakes in Hormel Foods Corporation (NYSE:HRL) since Q4 2022, valued at $83.49 million as of Q3 2023.

By the end of Q3 2023, 18 hedge funds in Insider Monkey’s database disclosed holdings in Hormel Foods Corporation (NYSE:HRL), a decrease from the 24 funds in the previous quarter. The combined value of these holdings is $245.3 million.

11. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 103

Bill & Melinda Gates Foundation Trust’s Equity Stake: $92.54 Million

Dividend Yield 0.42%

Danaher Corporation (NYSE:DHR) is a healthcare company that designs, manufactures, and sells medical industrial and commercial products and services.

Bill & Melinda Gates Foundation Trust has held stakes in Danaher Corporation (NYSE:DHR) since 2022 and was worth $92.54 million as of Q3 2023. While the company has paid dividends for 28 years, it currently pays a quarterly dividend of $0.24 a share on a yield of 0.42%.

At the end of the third quarter of 2023, 103 hedge funds in the database of Insider Monkey held stakes worth $7.90 billion in Danaher Corporation (NYSE:DHR), compared to 89 in the preceding quarter worth $6.39 billion.

Here is what Baron Health Care Fund said about Danaher Corporation (NYSE:DHR) in its Q3 2023 investor letter:

“We added to Danaher Corporation (NYSE:DHR), which recently completed the spinoff of its non-life sciences businesses to become a pure-play life sciences tools company. Although near-term trends in the bioprocessing market remain challenging, we like the long-term growth drivers in this business and think Danaher is well positioned.”

10. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 42

Bill & Melinda Gates Foundation Trust’s Equity Stake: $117.70 Million

Dividend Yield 4.13%

United Parcel Service, Inc. (NYSE:UPS) is a package delivery company providing transportation and delivery logistics, contract logistics, and ocean freight.

The robustness of United Parcel Service, Inc. (NYSE:UPS)‘s core business has allowed it to pay dividends for 22 years. Its yield is 4.13%, one of the highest in Gates’ portfolio, backed by a quarterly dividend of $1.62. Bill & Melinda Gates Foundation Trust increased its stakes in United Parcel Service, Inc. (NYSE:UPS) by 2% in Q3 2023 to $117.70 million.

At the end of the third quarter of 2023, 42 hedge funds in the database of Insider Monkey held stakes worth $1.84 billion in United Parcel Service, Inc. (NYSE:UPS), compared to 47 in the preceding quarter worth $945.51 million.

Among the hedge funds being tracked by Insider Monkey, Viking Global is a leading shareholder in United Parcel Service, Inc. (NYSE:UPS), with 6.66 million shares worth more than $1.04 billion.

In its Q3 2023 investor letter, ClearBridge Investments highlighted a few stocks, and United Parcel Service, Inc. (NYSE:UPS) was one of them. Here is what the fund said:

“A higher-for-longer rate mentality taking hold was a headwind for economically sensitive stocks. Rising wages have been one of the main drivers of inflation, and this has proved to be a sticky area, keeping the Fed’s attention and weighing on share prices. For example, United Parcel Service, Inc. (NYSE:UPS) renegotiated a wage increase for its union-backed workforce this summer, which weighed on margins that were already being constricted by slowing volumes. While the new union deal will dampen profits over the next 12 months due to the front-end-loaded nature of the new five-year contract, management gained increased flexibility to deploy automation, which we think should further enhance UPS’s strong competitive position and provide a long-term tailwind to profitability.”

9. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 67

Bill & Melinda Gates Foundation Trust’s Equity Stake: $406.48 Million

Dividend Yield 2.05%

FedEx Corporation (NYSE:FDX) is an industrial company that provides transportation, e-commerce, and business services. FedEx Corporation (NYSE:FDX) is best known for offering express transportation, trim packages, ground delivery, and freight transportation services.

FedEx Corporation (NYSE:FDX) is one of Bill Gates’ top dividend stocks, with an annual yield of 2.05%. At the same time, FedEx Corporation (NYSE:FDX) has paid dividends for 19 years. It currently pays a quarterly dividend of $1.26 a share. Bill & Melinda Gates Foundation Trust has held stakes in FedEx Corporation (NYSE:FDX) since 2012, worth $406.48 million as of Q3 2023.

FedEx Corporation (NYSE:FDX) was a part of 67 hedge fund portfolios at the end of Q3 2023, up from 62 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $2.95 billion.

8. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 80

Bill & Melinda Gates Foundation Trust’s Equity Stake: $484.61 Million

Dividend Yield 1.48%

Walmart Inc. (NYSE:WMT) is a consumer defensive investment play in Gates’ portfolio that operates retail wholesale and other units worldwide. Walmart Inc. (NYSE:WMT) operates supercenters, supermarkets, hypermarkets, warehouse clubs, and cash and carry stores that generate revenues for paying dividends.

The retailer has paid dividends for 34 years, at the back of increasing profits and market share benefiting from solid consumer spending power. Walmart Inc. (NYSE:WMT) currently pays a quarterly dividend of $0.57 a share with a yield of 1.48%. Bill & Melinda Gates Foundation Trust has been buying and selling shares in Walmart Inc. (NYSE:WMT) since 2012 and held stakes worth $484.61 million in Q3 2023.

During the third quarter of 2023, Walmart Inc. (NYSE:WMT) attracted considerable interest from hedge funds, with 80 hedge funds having positions in the company, according to Insider Monkey’s database. The collective holdings of these hedge funds amounted to over $5.95 billion. Noteworthy is the fact that Fisher Asset Management, led by Ken Fisher, emerged as the leading shareholder, with holdings valued at around $1.46 billion.

7. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)

Number of Hedge Fund Holders: 10

Bill & Melinda Gates Foundation Trust’s Equity Stake: $487.48 Million

Dividend Yield 3.19%

Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) is a beverage company that manufactures and sells non-alcoholic beverages. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) is one of the oldest dividend aristocrats in the Bill & Melinda Gates Foundation Trust portfolio, having paid dividends for 59 years. The impressive record stems from strong demand for the company’s sparkling soft drinks, flavors, and plant-based beverages.

The Gates Foundation has held stakes in Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) since 2012, worth $487.48 million as of Q3 2023. It currently pays a quarterly dividend of $0.46 per share, backed with a 3.19% yield.

As of 2023’s third quarter, 10 of the 910 hedge funds surveyed by Insider Monkey had held a stake in the firm. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)’s largest hedge fund investor after the Gates Foundation is Keith Meister’s Corvex Capital with $36.41 million stake.

6. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 53

Bill & Melinda Gates Foundation Trust’s Equity Stake: $883.94 Million

Dividend Yield 1.17%

Ecolab Inc. (NYSE:ECL) is a basic materials company that provides water hygiene, infection, and prevention solutions and services.

Ecolab Inc. (NYSE:ECL) has been paying dividends for the past 85 years, having raised payouts for 30 years. Ecolab Inc. (NYSE:ECL) currently pays a $0.57 quarterly dividend and boasts a 1.17% dividend yield. Bill & Melinda Gates Foundation Trust held stakes worth $883.94 million as of Q3 2023.

As of the close of Q3 2023, 53 hedge funds in Insider Monkey’s database reported having stakes in Ecolab Inc. (NYSE:ECL), down from 56 in the previous quarter. The consolidated value of these stakes is $2 billion.

Click to continue reading and see Bill Gates’ Top 5 Dividend Stocks.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up