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Bill Gates, the ninth wealthiest individual globally with a net worth estimated at $134.4 billion, has expertly leveraged dividend investing to amass significant wealth. While we can’t stand behind him as he makes trades, a look at The Bill & Melinda Gates Foundation Trust’s latest 13F filing reveals that Gates’ portfolio generates an impressive $476,619,848.15 annually from dividends, averaging $1,305,807.80 daily.
This steady income underscores the importance of making money through consistent dividend payments over relying on capital appreciation which can be far more uncertain. Gates’ portfolio demonstrates a strong preference for dividend-paying stocks, with 17 out of 24 holdings contributing to his substantial dividend income.
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Top 3 Dividend-Paying Stocks in Gates’ Portfolio
Canadian National Railway
Gates holds a substantial 54,826,786 shares in Canadian National Railway Company (NYSE:CNI), valued at $6.66 billion. The company’s quarterly dividend, currently at $0.62 per share, has provided Gates with $130,487,750.68 over the past year. Canadian National Railway is a significant contributor to Gates ‘ dividend income with a dividend yield of 1.93% and a five-year CAGR of 10.58%. Canadian National Railway is one of the largest rail companies in North America, transporting grain, oil, metals, and more across three coasts.
Microsoft
Gates’ investment in Microsoft Corporation (NASDAQ:MSFT) totals 36,499,597 shares, worth $16.14 billion. Despite reducing his stake by 4.5% earlier this year, Gates stands to earn $109,498,791 in the coming year, given the company’s forward annual dividend rate of $3.00 per share. Microsoft boasts a 19-year history of dividend growth and a five-year CAGR of 10.23%. Microsoft’s development of AI-driven tools and services and the growth of its cloud business are contributing to its ongoing growth story.
Waste Management
With 35,234,344 shares in Waste Management, Inc. (NYSE:WM) valued at $7.02 billion, Gates will receive $105,703,032 in dividends next year. Waste Management’s impressive 20-year streak of dividend growth and a five-year CAGR of 8.21% makes it a reliable income source for Gates. Waste Management does something most of us can’t live without: trash removal and recycling. While methods and means of disposal may change, it’s clear this business should be around for years to come.
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High-Yielding Holdings in Gates’ Portfolio
While the above stocks provide substantial dividends, they aren’t the highest-yielding investments in Gates’ portfolio. Noteworthy high-yield stocks include:
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Crown Castle Inc (NYSE:CCI): Gates owns 1,420,072 shares of this cell tower and fiber REIT with a 6.29% yield, generating $8,889,650.72 annually.
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Kraft Heinz Co (NASDAQ:KHC): With 2,622,600 shares at a 4.93% yield, Gates earns $4,196,160 yearly on this consumer goods conglomerate.
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United Parcel Service, Inc. (NYSE:UPS): Holding 755,089 shares at a 4.85% yield, Gates’ annual income from the shipping giant is $4,923,180.28.
Gates’ dividend strategy relies on these companies maintaining and increasing their payouts over time. His portfolio exemplifies the benefits of dividend investing, emphasizing the importance of selecting high-quality, income-generating stocks and holding them for long periods. While dividend investing offers a steady income stream, it carries inherent risks, and investors should conduct thorough research before making investment decisions.
Disclosure: This story was previously published on Benzinga and has been updated.
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The fund provides a fixed annual return of 12%, payable quarterly, over a 2-year period starting April 2024 and ending April 2026. The note is secured by collateral with an estimated value of $71M, with an anticipated loan-to-value ratio of 14%.
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This article Bill Gates Rakes In $1.3 Million Daily Through Dividend Income – Top Stocks In His Portfolio originally appeared on Benzinga.com
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