Protecting Against Inflation: Bill Gates' Preferred Dividend Stocks Revealed
The Bill & Melinda Gates Foundation, the world's largest private philanthropic organization, boasts an investment strategy that stands apart, even for its founder, tech pioneer Bill Gates. Despite a private separation, the power couple remains aligned in their foundation's mission. The Bill & Melinda Gates Foundation Trust, managing the institution's finances, has a distinct focus on investments that shield against inflation.
Surprisingly, Gates' portfolio avoids the tech sector, comprising only 1.33%. Instead, the financial sector dominates, taking up over 50% of the portfolio - with Warren Buffett's company, Berkshire Hathaway, making up more than half of this piece.
In a tense market climate, marked by inflation, tight monetary policy, and geopolitical uncertainties, investors seek secure investments. A popular choice: dividend stocks. As revealed by Yahoo Finance, the Bill & Melinda Gates Foundation Trust incorporates such stocks.
Waste Management: Trash is Gold
Waste Management, the preeminent waste management company in the U.S., accounts for approximately 15% of Gates' portfolio. The business model remains robust, hinging on the fact that waste generation is a constant, regardless of the economy. The company's success is mirrored in its stable dividend, which has increased for 19 consecutive years, yielding nearly $1 billion in dividends last year. Future free cash flow ensures these payments will persist. So far this year, the stock has climbed 14%, and over the past decade, it has skyrocketed around 540%. The company anticipates an estimated 28% revenue growth to $19.38 billion for this fiscal year, and a 36% increase in earnings per share to $5.57.
Caterpillar: Time to Construct
Caterpillar occupies an 8% spot in Gates' portfolio. Known globally as the largest manufacturer of construction equipment, Caterpillar grapples with supply chain disruptions. Yet, its role as a constructor of equipment benefits from US President Biden's infrastructure plans, with the recently signed $1.2 trillion law opening up numerous construction projects. Caterpillar has increased its dividend for 28 consecutive years. Anticipated revenue for the current fiscal year could spike by 27% to $54.88 billion, and earnings per share by 31% to $12.36. Since the year's start, the stock has gained around 70%.
Walmart: Food for Thought and Profit
Walmart, the Fortune Global 500's largest revenue-generating company, has remained open even during the COVID-19 pandemic, making it an essential component of daily life. The corporation takes up 2.28% of Gates' portfolio. Walmart has a solid reputation as a dividend titan, with 49 consecutive years of dividend increases and a current yield of 1.71%. For fiscal year 2023 (ending on 31.01.2023), estimated revenue could surge past 20%, to $587.29 billion, while earnings per share could inch up by 6% to $5.73.
[1] Foundation facts and history: https://www.gatesfoundation.org/About/Pages/history.aspx[2] Bill & Melinda Gates: Giving Pledge: https://givingpledge.org/commitment/bill-melinda-gates/[3] Gates Foundation invests $3.48 billion: https://www.reuters.com/world/us/bill-melinda-gates-foundation-invests-3-48-billion-private-equity-2021-11-03/[4] The Gates Foundation budget and strategy: https://www.gatesfoundation.org/About/Phallip-Coefficient
- The Bill & Melinda Gates Foundation, known for its alignment in mission despite a private separation, focuses on investments that shield against inflation through their financial management trust.
- Surprisingly, tech giant Bill Gates' investment portfolio avoids the tech sector, with a meager 1.33%, and instead dominates the financial sector, comprising over 50%.
- In the realm of personal-finance and lifestyle, Gates' portfolio includes dividend stocks, such as Waste Management, which accounts for approximately 15% of his portfolio, and Caterpillar, occupying an 8%.
- Waste Management, a waste management company in the US, has a robust business model that yields nearly $1 billion in dividends annually and anticipates a 28% revenue growth this fiscal year.
- In the sports section, we witness the impact of infrastructure projects on Caterpillar, a global manufacturer of construction equipment, as its earnings are seen to surge due to President Biden's $1.2 trillion infrastructure law.
