Can't Afford Farmland? Here Are 2 Dividend Stocks Bill Gates Owns In The Agriculture Industry

Zinger Key Points
  • Deere saw third quarter net sales rise by 25%.
  • Caterpillar repurchased $1.1 billion of its common stock and paid dividends of $0.6 billion in the second quarter of 2022.

Microsoft co-founder Bill Gates, and co-chair of the Bill and Melinda Gates Foundation, is the largest private owner of farmland in the United States with roughly 269,000 acres, across numerous states, accounting for 1% of the nation's total farmland.

On September 9, 2022, India banned the export of broken rice, which will most likely add to supply chain pressures, since India accounts for 40% of the global rice trade, per The Wall Street Journal.

Furthermore, the Russia-Ukraine war adds another burden to global food supply chains, as the two countries are amongst the biggest exporters of grain. With a dwindling global food supply, here are two companies in the Bill and Melinda Gates Foundation portfolio that benefit from the purchases of farmland equipment.

Caterpillar Inc CAT is offering a dividend yield of 2.54% or $4.80 per share annually, through quarterly payments, with an aristocratic track record of increasing its dividends for 29 years. Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives, and as of 2021 it is currently the world's largest manufacturer of heavy equipment with over 13% market share.

Caterpillar’s products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers, as of 2021.
In the second quarter, Caterpillar repurchased $1.1 billion of its common stock and paid dividends of $0.6 billion, and ended the period with $6.0 billion of enterprise cash.

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Deere And Co. DE is offering a dividend yield of 1.21% or $4.52 per share annually, utilizing quarterly payments, with a decent track record of increasing its dividends for two consecutive years. Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry.

Deere’s products are available through an extensive dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally, as of 2021.

Deere saw third quarter net sales rise by 25%, bolstered by higher rates of production, and is forecasting full year net income to be in the range of $7 billion to $7.2 billion.

​​“Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs,” said John C. May, Chairman and Chief Executive Officer.

Photo: Courtesy of Statsministerens kontor on flickr

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Posted In: EarningsLarge CapLong IdeasNewsGuidanceDividendsDividendsBuybacksTrading IdeasBill & Melinda Gates FoundationBill Gates Agriculture Dividend StocksBill Gates High Yielding Investments
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