In this article, we discuss Bill Gates’ top 5 dividend stocks. If you want to read our detailed analysis of Bill Gates’ investment philosophy and his major investments, go directly to read Bill Gates’ Top 15 Dividend Stocks. 

5. Deere and Company (NYSE:DE)

Number of Hedge Fund Holders: 55
Bill & Melinda Gates Foundation Trust’s Equity Stake: $1.48 Billion
Dividend Yield 1.52%

Deere & Company (NYSE:DE) is an industrial company that manufactures and distributes various equipment worldwide. 

Deere & Company (NYSE:DE) is one of the dividend stocks in Gates portfolio, having been paying dividends for 34 years. Bill & Melinda Gates Foundation Trust was the most prominent shareholder in Deere & Company (NYSE:DE) at the end of the third quarter, holding 3.9 million shares in the company. It held stakes worth $1.48 billion in Deere & Company (NYSE:DE) as of Q3 2023 and has held since 2021. The company pays a quarterly dividend of $1.47 a share with a yield of 1.52%.

Deere & Company (NYSE:DE) had 55 hedge funds long its stock in the third quarter. Their total stake value in the company was $3.08 billion. 

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4. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50
Bill & Melinda Gates Foundation Trust’s Equity Stake: $2.01 Billion
Dividend Yield 1.79%

Caterpillar Inc. (NYSE:CAT) is one of Bill Gates’ top dividend stocks that benefits from a booming economy. The industrial company manufactures and sells construction mining equipment for highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

Increased economic activities in the aftermath of the pandemic have translated to strong demand for Caterpillar Inc. (NYSE:CAT)’s equipment, including compactors, road reclaimers, and forestry machines. Caterpillar Inc. (NYSE:CAT) pays a quarterly dividend of $1.30 a share with a yield of 1.79%

Bill & Melinda Gates Foundation Trust has been buying and selling shares in the company since 2012, benefiting greatly from the 34-year dividend history. The Trust held stakes worth $2.01 billion worth of stakes in Q3 2023.

At the end of the third quarter of 2023, Insider Monkey’s database revealed that 50 hedge funds retained stakes in Caterpillar Inc. (NYSE:CAT), maintaining a value of $4.8 billion. This was consistent with the previous quarter’s holdings valued at $2.5 billion.

In its Q3 2023 investor letter, Diamond Hill Capital, an asset management firm, featured Caterpillar Inc. (NYSE: CAT) among the highlighted stocks. The firm shared the following insights:

“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”

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3. Waste Management, Inc. (NYSE:WM)

Number of Hedge Fund Holders: 41
Bill & Melinda Gates Foundation Trust’s Equity Stake: $5.37 Billion
Dividend Yield: 1.59%

Waste Management, Inc. (NYSE:WM) is a defensive investment play by the Bill & Melinda Gates Foundation Trust as the company manages waste. Waste Management, Inc. (NYSE:WM) provides collection services for waste and recyclable materials, such as taking them from their source to a transfer station. These services are always needed, regardless of the economic situation.

As one of the most prominent players in the waste management business, Waste Management, Inc. (NYSE:WM) stands out as one of Bill Gates top dividend stocks. It currently offers a quarterly dividend of $0.70 per share and a yield of 1.59% and has paid dividends for 23 years. Bill & Melinda Gates Foundation Trust has held shares since Q3 2022 valued at $5.37 billion as of the end of Q3 2023. With nearly 35.23 million shares, Michael Larson’s Bill & Melinda Gates Foundation Trust was the company’s leading stakeholder in the third quarter.

Waste Management, Inc. (NYSE:WM) has gained 11% year to date. Insider Monkey’s database of Q3 2023 indicated that 41 hedge funds owned stakes in Waste Management, Inc. (NYSE:WM), compared to 39 in the previous quarter. These stakes are worth roughly $5.9 billion in total. 

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2. Canadian National Railway Company (NYSE:CNI)

Number of Hedge Fund Holders: 39
Bill & Melinda Gates Foundation Trust’s Equity Stake: $5.94 Billion
Dividend Yield 1.90%

Montreal, Canada-based Canadian National Railway Company (NYSE:CNI) engages in rail and related transportation business. It offers rail services, including equipment, custom breakage services, Trans loading and distribution, business development, and real estate.

Canadian National Railway Company (NYSE:CNI) is the third largest holding in the Bill & Melinda Gates Foundation Trust portfolio, with stakes worth $5.94 billion. The Trust has held stakes in the company since 2012 and has paid dividends for 25 years. Canadian National Railway Company (NYSE:CNI) currently pays a quarterly dividend of $0.58 per share with a yield of 1.90%. Gates annual income from the company stands at about $125 million.

As of the end of Q3 2023, 39 hedge funds tracked by Insider Monkey owned stakes in Canadian National Railway Company (NYSE:CNI), compared with 38 in the preceding quarter. The consolidated value of these stakes is over $11.22 billion.

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 306
Bill & Melinda Gates Foundation Trust’s Equity Stake: $12.40 Billion
Dividend Yield 0.81%

Microsoft Corporation (NASDAQ:MSFT) remains Bill Gates biggest holding, offering exposure to various software applications, device development and emerging technologies. 

Microsoft Corporation (NASDAQ:MSFT) has proved to be an ideal investment for gaining exposure to the artificial intelligence frenzy owing to its $13 billion investment in OpenAI. Bill & Melinda Gates Foundation Trust increased its stake in Microsoft Corporation (NASDAQ:MSFT) by 1% in Q3 2023 to $12.40 billion. The company has been paying dividends for 19 years. Its quarterly dividend stands at $0.75 a share with a yield of 0.81%.

At the end of the third quarter of 2023, 306 hedge funds in the database of Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT), compared to 300 in the preceding quarter. 

Here is what Jackson Peak Capital, an investment management firm, said about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:

“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”

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