Invoice Gates might have been the world’s first trillionaire. Nonetheless, his internet price right this moment is “solely” round $117 billion. He is not hurting, to say the least.
One purpose why Gates is not even wealthier is that he did not maintain on to his stake in Microsoft (MSFT 1.58%), the software program large he co-founded. One other issue is that Gates has given away a considerable amount of cash — a whopping $59 billion — to the charitable group he and his ex-wife based, the Invoice & Melinda Gates Basis.
This basis has additionally given away some huge cash to assist folks around the globe. Nonetheless, it nonetheless boasts a large funding portfolio of roughly $42 billion on the finish of the primary quarter of 2025. And Gates has 66% of his basis’s portfolio invested within the following 5 dividend shares.
Picture supply: Getty Photographs.
1. Microsoft
Unsurprisingly, Microsoft is the most important holding for the Invoice & Melinda Gates Basis Belief. The corporate makes up almost 25.6% of the muse’s complete portfolio, with a stake price virtually $10.7 billion on the finish of Q1.
Though many tech shares do not pay dividends, Microsoft initiated its dividend program in 2003. The corporate has elevated its dividend for 20 consecutive years. Nonetheless, Microsoft’s dividend nonetheless is not all that enticing, with a ahead yield of solely 0.68%.
Gates donated billions of {dollars} price of Microsoft shares to his basis at its inception in 2000. The inventory floundered for years, however started to take off in 2015. Its momentum continues right this moment, because of a serious tailwind from synthetic intelligence (AI) adoption.
2. Waste Administration
Waste Administration (WM 1.57%) ranks because the Gates Basis Belief’s third-largest holding, trailing Microsoft and Berkshire Hathaway. On the finish of Q1, the muse’s place in Waste Administration made up almost 17.9% of its portfolio.
Whereas Berkshire has by no means paid a dividend, Waste Administration has paid quarterly dividends since 1998. The large waste administration companies supplier has elevated its dividend for 22 consecutive years. Its ahead dividend yield presently stands at 1.48%.
3. Canadian Nationwide Railway
The Invoice & Melinda Gates Basis Belief owned over 54.8 million shares of Canadian Nationwide Railway (CNI -0.06%) on the finish of Q1, price round $5.34 billion. This place comprised almost 12.8% of the muse’s complete portfolio.
Canadian Nationwide Railway, often known as CN, operates a rail community spanning almost 20,000 miles. The corporate has elevated its dividend for 29 consecutive years. CN’s ahead dividend yield is 2.43%.
4. Caterpillar
Big equipment firm Caterpillar (CAT -0.14%) is the Gates Basis Belief’s fifth-largest place. On the finish of Q1, the muse owned a stake in Caterpillar price roughly $2.43 billion, making up 5.8% of its portfolio.
Caterpillar has paid a dividend each quarter since 1933. It additionally boasts a 31-year streak of dividend will increase, with its newest dividend hike introduced final month. The economic large’s ahead dividend yield is 1.52%.
5. Deere & Co.
The Gates Basis Belief had $1.67 billion invested in Deere & Co. (DE 0.23%) on the finish of Q1. This stake was sufficient to make up only a hair beneath 4% of the muse’s complete portfolio.
Whereas Deere has paid quarterly dividends for many years, the agriculture equipment producer hasn’t at all times elevated its dividend every year. Nonetheless, Deere’s latest observe document is spectacular, with the corporate greater than doubling its dividend payout over the past 5 years. Its ahead dividend yield is 1.25%.
Do you have to personal these dividend shares, too?
You should not purchase any inventory solely as a result of a well-known particular person owns it (or as a result of the well-known particular person’s charitable group owns it). Nonetheless, I feel two of those dividend shares within the Invoice & Melinda Gates Basis Belief’s portfolio stand out as fairly good picks.
Earnings buyers would possibly like Canadian Nationwide Railways. Its dividend yield is greater than twice the yield of the S&P 500 (^GSPC 0.83%). CN’s enterprise can be resilient.
I doubt that revenue buyers will get enthusiastic about Microsoft, however progress buyers ought to. As talked about, AI is a key progress driver for the corporate. Specifically, Microsoft Azure, the world’s second-largest cloud platform, ought to profit tremendously from elevated AI adoption.
Keith Speights has positions in Berkshire Hathaway and Microsoft. The Motley Idiot has positions in and recommends Berkshire Hathaway, Deere & Firm , and Microsoft. The Motley Idiot recommends Canadian Nationwide Railway and Waste Administration and recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
