It’s hard to argue against the investing decisions of billionaire Bill Gates.

At just 68, he’s now worth $138.6 billion thanks in large part to the success of Microsoft.

Nowadays, after stepping down as the tech giant’s CEO, he pledged that “the vast majority of my wealth would go toward helping as many people as possible.” Supporting that goal is the Bill & Melinda Gates Foundation Trust, whose mission is to “create a world where every person has the opportunity to live a healthy, productive life,” as noted on its site.

So far, according to the Trust, it’s donated about $59 billion to help cure disease, save lives and help millions in need of care.

Helping, the Trust owns a substantial stake in dividend-paying companies such as Microsoft (NASDAQ:MSFT), Berkshire Hathaway (NYSE:BRK-B), Waste Management (NYSE:WM), Canadian National Railway (NYSE:CNI), Caterpillar (NYSE:CAT), Deere (NYSE:DE)., Walmart (NYSE:WMT) and FedEx (NYSE:FDX) to name just a few. Of its top holdings, about 70% of the portfolio is heavily invested in five stocks, which include:

Key Points About This Article:

• Supporting Bill Gates’ pledge that “the vast majority of my wealth would go toward helping as many people as possible,” the Bill & Melinda Gates Foundation Trust has donated about $59 billion so far.
• More than 88% of the Trust’s portfolio is made up of five top stocks. All of which are healthy dividend-paying giants.
• Keep your portfolio well-protected with these reliably safe stocks. You may also want to grab your free copy of “2 Legendary High-Yield Dividend Stocks“

Microsoft: 32.7% Stake

Microsoft is the biggest holding in the Bill & Melinda Gates Foundation Trust, which owns 34.8 million shares of the tech giant, valued at over $15.5 billion.

Last trading at $432.60, Microsoft could push aggressively higher, especially with Azure Cloud becoming one of the fastest-growing cloud infrastructure providers. Even its move into generative artificial intelligence has been exciting, with Evercore ISI analysts noting Microsoft AI revenues could run to $143 billion by 2027.

Even more impressive, the tech giant just declared an 83-cent dividend, payable on December 12 to shareholders of record as of November 21. The board also authorized up to $60 billion in stock buybacks. Helping, analysts at Mizuho just reiterated an outperform rating on the stock with a price target of $480 a share.

Berkshire Hathaway: 21% Stake

 Another one of the Trust’s top holdings is Warren Buffett’s Berkshire Hathaway. At the moment, it owns about 24.6 million shares, valued at over $10 billion.

Since its inception, Buffett’s Berkshire stock has averaged annual returns of about 20%, which is roughly double the rate of the S&P 500 over the same time frame. Given the success of Berkshire Hathaway and its massive cash pile of $276.9 billion as of the second quarter, it’s really no surprise it makes up such a big chunk of the Foundation’s investments.

Waste Management: 15.7% Stake

 Waste Management is one of the world’s largest environmental service companies in the world. It provides waste collection, disposal, and recycling in North America. Its stock also makes up a good chunk of the Gates’ Foundation Trust. At the moment, the Trust owns 35.2 million shares, valued at over $7.5 billion. It also yields 1.4% at the moment.

We also have to consider that the WM revenues remain steady even with economic slowdowns. After all, millions still need waste collection, disposal and recycling.

Canadian National Railway: 13.6% Stake 

The Gates’ Trust also owns 54.8 million shares of Canadian National Railway, which is valued at about $6.47 billion. Not only does the railroad stock have strong growth ahead, but it also has a strong history of dividend growth. With a current yield of 2.11%, the company is about to pay out an 84.5-cent dividend on September 27 to shareholders of record as of September 6.

Also, while the company did lower its 2024 profit forecast thanks to labor stoppages and wildfires, it appears most of the negativity has been priced into the rebounding stock.

According to Reuters, “Its operations have now recovered following several months of uncertainty, the company said. The company now expects adjusted diluted earnings per share (EPS) growth in the low single-digit percentage range, compared to its previous forecast of a mid to high single-digit percentage growth.”

Caterpillar: 5.14% Stake

 The Bill & Melinda Gates Foundation Trust also owns just over 5% of Caterpillar, with 7.35 million shares, valued at just over $2.44 billion. Caterpillar also yields about 1.6% and recently paid out a $1.41 dividend on August 20. The next dividend payout should be in November.

“Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933. Caterpillar has paid higher annual dividends to shareholders for 30 consecutive years and is recognized as a member of the S&P 500 Dividend Aristocrats Index,” as noted on the company’s site.

Even better, earnings haven’t been too shabby. In its most recent report, Caterpillar’s EPS of $5.99 beat expectations by 45 cents. Revenue, while down 3.5% year over year, beat by $20 million.

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