Bill Gates Just Bought 3M More Shares of This 'Boring' Stock, Which Pays Him $78M Every Quarter

Bill Gates has been quietly building a huge stake in waste management firm Republic Services (NYSE: RSG), which is on track to become a dividend aristocrat, having raised its dividend for roughly 22 consecutive years.

Note that to be a formal S&P 500 dividend aristocrat, a company must increase its dividend for at least 25 straight years.

Gates further boosted his massive stake in the stock via his private holding company Cascade Investment, acquiring 3.06 million shares across multiple trades between 28 August and 11 September, according to regulatory filings.

He now owns 117.05 million shares of Republic Services via his family office, or over 38% of all outstanding common shares of the company.

Meanwhile, Republic Services recently raised its quarterly dividend to $0.67 per share, payable 15th October to stockholders of record 2nd October.

Considering Gates' ownership of over 117 million company shares, he will pocket a whopping $78.43 million just from the upcoming dividend payout. Annually, it would imply an income of $313.7 million.

If Republic Services continues to increase dividend payouts at this rate and Gates maintains his stake, his income from just holding the stock could increase markedly over the coming years.

This particular trade is intriguing as Gates' investment in the Republic Services stock, which has gained by a meagre 3.7% year-to-date, could mean he is prioritising steady income streams amid market volatility instead of aggressive capital appreciation.

Republic Services' Pricing Model Can Help Offset Inflation Impact

Unlike typical industrial businesses that are susceptible to margin compression from higher labour and fuel costs during periods of elevated inflation, waste management companies operate with unique pricing structures.

Republic Services provides collection, transfer, disposal, as well as recycling services across the US. The company mostly relies on multi-year municipal contracts, which factor in annual price adjustments linked with the Consumer Price Index or specialised waste-collection indexes.

When inflation rises, topline contract rates adjust upward on a scheduled timeline. Note that for commercial accounts beyond municipal boundaries, Republic Services exercises open-market core pricing flexibility and passes costs to clients.

Beyond ordinary waste collection, the company is also seeing additional growth in renewable natural gas and specialised environmental services, given acquisitions such as US Ecology.

By capturing landfill methane and converting it into commercial-grade pipeline fuel, Republic Services transforms an environmental mandate into a potentially predictable revenue stream, which Gates has likely identified and is moving aggressively to capitalise on.

These business moats are also supported by the company's robust earnings growth in Q2.

Republic Services posted Q2 adjusted earnings per share of $1.85, up from $1.77 in the prior year quarter, while revenue rose to 4.43 billion from $4.23 billion a year earlier. The company expects full-year 2026 adjusted EPS of $7.23 to $7.28 on revenue of $17.20 billion to $17.30 billion.

Note that experts have raised concerns about the stagnating rate of revenue growth over the past two years. As Republic Services continues to scale, the expansion could be a double-edged sword because it limits the company's growth potential compared to its smaller competitors.

Flat unit sales over the past two years could indicate that demand is soft and that the company may need to overhaul its business strategy.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks, and past performance does not guarantee future returns.