Bill Gates is the richest man in the world with a net worth of over $100 billion in 2020, according to Forbes magazine. The Bill & Melinda Gates Foundation Trust has a massive $21 billion and the portfolio holdings give us some nice insights. In this article, we list the top-10 dividend stocks and analyze changes in Bill Gates’ portfolio of dividend stocks.
Based on the last reported 13F filing (Q4 2019) the Bill & Melinda Gates Foundation Trust included $21,354,166,000 in managed 13F securities and a top 10 holdings concentration of over 98%. Bill Gates’ portfolio is managed by Michael Larson, who has managed Bill Gates’ personal wealth since 1994. Larson’s returns have outperformed the S&P 500 by approximately 1% per year with presumably lower volatility. He is a value investor and has a buy-and-hold investment strategy, which results in very few transactions in this portfolio.
To summarize, Bill Gates’ portfolio of dividend stocks is concentrated in companies built for the long term.
Changes last Quarter
The Bill & Melinda Gates Foundation Trust only made three transactions, exiting positions in Beyond Meat and Cornerstone Building Brands were closed and the stake in Berkshire Hathaway has been reduced with 9% (likely for estate planning purposes).
Looking at all of the trust’s holdings, United Parcel Service (UPS) is currently the highest-yielding stock in Bill Gates’ portfolio, followed by Coca-Cola FEMSA and Caterpillar (CAT). The table below shows Bill Gates’ dividend stocks selected by Michael Larson:
|Name||Ticker||Sector||Dividend Yield (%)||P/E Ratio||3 year Dividend Growth (%)|
|Coca-Cola FEMSA SAB de CV||KOF||Consumer Defensive||4.77||38.77||-4.29|
|United Parcel Service, Inc.||UPS||Industrials||3.94||19.04||7.62|
|Crown Castle International Corp.||CCI||Real Estate||3.34||74.71||8.52|
|Canadian National Railway Co.||CNI||Industrials||2.19||17.33||6.10|
|Waste Management, Inc.||WM||Industrials||2.15||24.02||6.50|
|Wal-Mart Stores||WMT||Consumer Defensive||1.93||22.06||2.00|
|Grupo Televisa SAB||TV||Consumer Cyclical||1.63||11.92||-7.75|
|Ecolab Inc.||ECL||Basic Materials||1.17||29.82||8.04|
Premium members can view all data using the Bill Gates portfolio screener.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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