Discover The 4 Stocks Fueling His $97 Million Annual Payout

Bill Ackman, the founder and CEO of Pershing Square Capital Management hedge fund, is known for his eccentric investment strategies and market bets.

The Harvard University alum predicted the stock market collapse in March 2020 and made a 100-fold return in just a week as his investment of $27 million in credit protection securities reaped approximately $2.6 billion. More recently, Ackman made a $200 million profit when he closed his position in 30-year U.S. Treasuries in October.

While Ackman has earned millions by timing the markets perfectly, he also enjoys a steady inflow of dividend income. He has emphasized the benefit of investing in large-cap industry leaders, which are “simple, predictable, free-cash-flow generative, dominant companies with, as Warren Buffett would say, a moat around them.”

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As of Dec. 2, he has eight companies in his portfolio that generate $97 million in dividend income. All of his dividend income comes from four stocks.

Take a closer look at the dividend-paying stocks Ackman has invested in.

Restaurant Brands International

Based in Canada, Restaurant Brands International Inc. (NYSE:QSR) is one of the world’s largest fast-food chain operators. Its brands include Tim Hortons Inc., Burger King Corp., Popeyes Louisiana Kitchen Inc. and Firehouse Subs.

Ackman owns 23.35 million shares of Restaurant Brands valued at approximately $1.56 billion. Restaurant Brands, which pays $2.20 per share in dividends annually, generates dividend income of $51.37 million for Ackman’s portfolio. Income generated from Restaurant Brands’ total dividend payouts accounts for over 52% of Ackman’s portfolio dividend income.

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Ackman touts Restaurant Brands’ strong financials and balance sheet as key factors to consider before investing in a company. Restaurant Brands’ consolidated systemwide sales rose 10.9% year over year to $11.2 billion for the third quarter that ended Sept. 30. The company also returned over $360 million of capital to shareholders in the last quarter, making it a top pick for income investors.