Many investors may not be aware that the stock portfolio of Bill Gates, the wealthiest man in America, is publicly available information. Gates invests in the stock market through Cascade Investment Group, a trading vehicle.
Stockpickr has taken the initiative to analyze Cascade’s stockholdings and identify the stocks with the highest yields, which are the ones that pay dividends to Gates.
One of the high-yielding stocks in Gates’ possession is PNM Resources (PNM), a company involved in electricity and natural gas generation and distribution in New Mexico and Texas. Recently, Jefferies & Co. upgraded the stock from hold to buy. With a price-to-earnings (P/E) ratio of 14 and a P/E-to-growth (PEG) ratio of 1.7, PNM offers a generous yield of 3.8%.
PNM has been added to the portfolio of Lord Abbett Small-Cap Value Y (LRSYX), a fund rated five stars by Morningstar. This fund, which primarily invests in equity securities of small companies in the Russell 2000, has delivered an average annual return of 18% over the past three years. Additionally, the fund holds Quanex (NX), a company offering a yield of 1.2%, and Black Hills (BKH), an electric utility serving South Dakota, Wyoming, and Montana, with a yield of 3.1%.
Another high-yield stock owned by Gates is Otter Tail (OTTR), an electric utility based in Minnesota that also operates in various businesses like manufacturing pipes, wind towers, medical equipment, and dehydrated potato products. Otter Tail provides a P/E of 21, a PEG of 4.2, and a yield of 3.2%.
Otter Tail is also part of Sleepers, an intriguing portfolio on Stockpickr that includes MDU Resources Group (MDU) with a yield of 2.1% and Applied Materials (AMAT) with a yield of 1.2%.
Republic Services (RSG) is another dividend stock in Gates’ possession. The company is engaged in non-hazardous solid waste collection and disposal services. Its earnings call is scheduled for Nov. 6. Republic Services offers a P/E of 23, a PEG of 2.
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