Bill Gates Rakes In $1.3 Million Daily Through Dividend Income - Top Stocks In His Portfolio

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 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 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. 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:

• Crown Castle Inc 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.
• Kraft Heinz Co KHC: With 2,622,600 shares at a 4.93% yield, Gates earns $4,196,160 yearly on this consumer goods conglomerate. 
• United Parcel Service, Inc. 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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