Canadian National Railway, also known as CN, operates a rail network spanning nearly 20,000 miles. The company has increased its dividend for 29 consecutive years. CN's forward dividend yield is 2.43%.

4. Caterpillar

Giant machinery company Caterpillar (NYSE: CAT) is the Gates Foundation Trust's fifth-largest position. At the end of Q1, the foundation owned a stake in Caterpillar worth roughly $2.43 billion, making up 5.8% of its portfolio.

Caterpillar has paid a dividend every quarter since 1933. It also boasts a 31-year streak of dividend increases, with its latest dividend hike announced last month. The industrial giant's forward dividend yield is 1.52%.

5. Deere & Co.

The Gates Foundation Trust had $1.67 billion invested in Deere & Co. (NYSE: DE) at the end of Q1. This stake was enough to make up just a hair below 4% of the foundation's total portfolio.

While Deere has paid quarterly dividends for decades, the agriculture machinery manufacturer hasn't always increased its dividend each year. However, Deere's recent track record is impressive, with the company more than doubling its dividend payout over the last five years. Its forward dividend yield is 1.25%.

Should you own these dividend stocks, too?

You shouldn't buy any stock solely because a famous person owns it (or because the famous person's charitable organization owns it). However, I think two of these dividend stocks in the Bill & Melinda Gates Foundation Trust's portfolio stand out as pretty good picks.

Income investors might like Canadian National Railways. Its dividend yield is more than twice the yield of the S&P 500 (SNPINDEX: ^GSPC). CN's business is also resilient.

I doubt that income investors will get excited about Microsoft, but growth investors should. As mentioned, AI is a key growth driver for the company. In particular, Microsoft Azure, the world's second-largest cloud platform, should benefit tremendously from increased AI adoption.

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Keith Speights has positions in Berkshire Hathaway and Microsoft. The Motley Fool has positions in and recommends Berkshire Hathaway, Deere & Company , and Microsoft. The Motley Fool recommends Canadian National Railway and Waste Management and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Billionaire Bill Gates Has 66% of His Foundation's $42 Billion Portfolio Invested in These 5 Dividend Stocks was originally published by The Motley Fool