Bill Gates, the co-founder of Microsoft, has a significant stake in the company through his charitable foundation. The Bill & Melinda Gates Foundation Trust, valued at $46 billion at the end of the first quarter of 2024, holds a large portion of its portfolio in Microsoft stock. According to the latest filings, Microsoft represents about 34% of the foundation’s holdings.
This equates to approximately $15.4 billion in monetary terms. The tech giant not only forms a substantial part of the foundation’s wealth but also generates considerable dividend income. In Q2 2024 alone, Microsoft’s dividends amounted to more than $27 million for the foundation.
Gates co-founded Microsoft back in 1975 and committed to donating his entire stake in the company to charity by the time he died.
Gates foundation’s Microsoft investment impact
As a result, much of the foundation’s holdings in Microsoft came from Gates’ donations over the years.
Despite the immense value of Microsoft in the foundation’s portfolio, individual investors might find the company’s current dividend yield of 0.64% less appealing compared to other income-generating investments. However, those interested in AI advancements and long-term tech investments could still consider Microsoft as a beneficial addition to their portfolios. The company’s innovations, particularly in artificial intelligence, have made it a compelling asset.
Microsoft’s generative AI chatbot, Copilot, has gained significant traction, with its customized applications for Microsoft 365 being utilized by about 30,000 organizations, reflecting a 175% increase quarter over quarter. The Bill & Melinda Gates Foundation conducts charitable activities in over 130 countries, focusing on areas such as agricultural development and improving financial resources for low-income communities. The foundation’s vast portfolio, with Microsoft as a prominent holding, plays a crucial role in supporting these global initiatives.
