Up to date on August twenty third, 2023 by Bob Ciura
Kevin O’Leary is Chairman of O’Shares Funding Advisors, however you in all probability know him as “Mr. Fantastic”.
He may be seen on CNBC in addition to the tv present Shark Tank. Traders who’ve seen him on TV have doubtless heard him focus on his funding philosophy.
Mr. Fantastic seems to be for shares that exhibit three essential traits:
- First, they should be high quality corporations with sturdy monetary efficiency and strong steadiness sheets.
- Second, he believes a portfolio ought to be diversified throughout totally different market sectors.
- Third, and maybe most essential, he calls for revenue—he insists the shares he invests in pay dividends to shareholders.
You’ll be able to obtain the whole listing of all of O’Shares Funding Advisors inventory holdings by clicking the hyperlink beneath:
OUSA owns shares that show a mixture of all three qualities. They’re market leaders with sturdy income, diversified enterprise fashions, and so they pay dividends to shareholders. The listing of OUSA portfolio holdings is an attention-grabbing supply of high quality dividend development shares.
This text analyzes the fund’s largest holdings intimately.
Desk of Contents
The highest 10 holdings from the O’Shares FTSE U.S. High quality Dividend ETF are listed so as of their weighting within the fund, from lowest to highest.
No. 10: Pfizer Inc. (PFE)
Dividend Yield: 4.5%
Share of OUSA Portfolio: 2.98%
Pfizer Inc. is a worldwide pharmaceutical firm that focuses on prescribed drugs and vaccines. Pfizer’s high merchandise are Eliquis, Ibrance, Prevnar, Enebrel (worldwide), Sutent, Xtandi, Vyndaqel/ Vyndamax, Inlyta, Xeljanz, Plaxlovid, and Comiranty.
Pfizer reported Q2 2023 outcomes on August 1st, 2023.
Supply: Investor Presentation
Companywide income fell (-53%) to $12.73 billion and adjusted diluted earnings per share dropped (-67%) to $0.67 versus $2.04 on a year-over-year foundation due to declining COVID-19 vaccine and anti-viral drug gross sales. Diluted GAAP earnings per share fell (-77%) to $0.41 from $1.73 in comparable quarters.
Click on right here to obtain our most up-to-date Positive Evaluation report on Pfizer (preview of web page 1 of three proven beneath):
No. 9: T. Rowe Value Group (TROW)
Dividend Yield: 4.5%
Share of OUSA Portfolio: 3.22%
T. Rowe Value Group, based in 1937 and headquartered in Baltimore, MD, is without doubt one of the largest publicly traded asset managers. The corporate offers a broad array of mutual funds, sub-advisory providers, and separate account administration for particular person and institutional buyers, retirement plans and monetary intermediaries.
On July twenty eighth, 2023, T. Rowe Value introduced second quarter outcomes for the interval ending June thirtieth, 2023.
Supply: Investor Presentation
For the quarter, income grew 6.6% to $1.61 billion, beating estimates by $20 million. Adjusted earnings-per-share of $2.02 in comparison with $1.79 within the prior 12 months, which was $0.29 greater than anticipated.
Throughout the quarter, property below administration (AUM) elevated 6.8% to $1.399 trillion. Market appreciation of $57.7 billion greater than offset $20 billion of internet consumer outflows. Working bills of $1.077 billion was a 27.5% enhance year-over-year, however had been greater by simply 2.3% from the primary quarter of 2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on TROW (preview of web page 1 of three proven beneath):
No. 8: McDonald’s Company (MCD)
Dividend Yield: 2.2%
Share of OUSA Portfolio: 3.25%
On July 27th, 2023, McDonald’s reported Q2 2023 results. Total revenue came in at $6,497.5M, a +14% increase from $5,718.4M compared to Q2 2022 on a 12% rise in system-wide sales adjusting for currency headwinds. Revenue climbed 18% at company-owned stores, while revenue increased 12% at franchised restaurants. Diluted earnings surged 97% to $3.15 per share compared to $1.60 per share in comparable periods on lower operating costs.
Click here to download our most recent Sure Analysis report on MCD (preview of page 1 of 3 shown below):
No. 7: Merck & Company (MRK)
Dividend Yield: 2.6%
Percentage of OUSA Portfolio: 3.74%
Merck & Company is one of the largest healthcare companies in the world. Merck manufactures prescription medicines, vaccines, biologic therapies, and animal health products. Merck generates annual revenues of ~$59 billion.
On July 16th, 2023, Merck completed its previously announced purchase of clinical-stage biotech company Prometheus (RXDX) for $10.8 billion in cash.
On August 1st, 2023, Merck announced second quarter results for the period ending June 30th, 2023. Results were led by strong growth of the flagship product Keytruda.
Source: Investor Presentation
For the quarter, income improved 3% to $15 billion, beating estimates by $560 million. Forex alternate was a 4% headwind to outcomes. Adjusted earnings-per-share was a -$2.06, primarily as a result of cost taken for the acquisition of Prometheus.
Click on right here to obtain our most up-to-date Positive Evaluation report on Merck (preview of web page 1 of three proven beneath):
No. 6: Johnson & Johnson (JNJ)
Dividend Yield: 2.9%
Share of OUSA Portfolio: 3.98%
Johnson & Johnson is a worldwide healthcare large. The corporate at the moment operates three segments: Shopper, Pharmaceutical, and Medical Gadgets & Diagnostics. The company contains some 250 subsidiary corporations with operations in 60 international locations and merchandise bought in over 175 international locations.
On July twentieth, 2023, Johnson & Johnson introduced outcomes for the second quarter for the interval ending June thirtieth, 2023.
Supply: Investor Presentation
For the quarter, income grew 6.4% to $25.5 billion, which was $860 million greater than anticipated. Adjusted earnings-pershare of $2.80 in contrast favorably to $2.59 within the prior 12 months and was $0.18 greater than anticipated. Excluding unfavorable forex alternate, income grew 7.5%. Pharmaceutical revenues grew 3.1% on a reported foundation (up 7.2% excluding forex alternate).
The corporate has elevated its dividend for over 60 consecutive years, making it a Dividend King.
Click on right here to obtain our most up-to-date Positive Evaluation report on JNJ (preview of web page 1 of three proven beneath):
No. 5: Apple (AAPL)
Dividend Yield: 0.53%
Share of OUSA Portfolio: 4.08%
Apple designs, manufactures and sells expertise merchandise equivalent to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a providers enterprise that sells music, apps, and subscriptions.
Apple is the #1 holding of Berkshire Hathaway (BRK.B), making the expertise large one of many high Warren Buffett shares.
On August third, 2023, Apple reported Q3 fiscal 12 months 2023 outcomes for the interval ending July 1st, 2023. (Apple’s fiscal 12 months ends the final Saturday in September). For the quarter, Apple generated income of $81.8 billion, a -1.4% decline in comparison with Q3 2022.
Product gross sales had been down -5.7%, pushed by a -19.8% decline in iPad gross sales. The iPhone phase (48% of whole gross sales) was down -2.4%. Service gross sales elevated 8.2% to $21.2 billion and made up 25.9% of all gross sales within the quarter. Internet revenue equaled $19.88 billion or $1.26 per share in comparison with $19.44 billion or $1.20 per share in Q2 2022.
Click on right here to obtain our most up-to-date Positive Evaluation report on AAPL (preview of web page 1 of three proven beneath):
No. 4: Marsh & McLennan Firms (MMC)
Dividend Yield: 1.5%
Share of OUSA Portfolio: 4.18%
Marsh McLennan is a worldwide skilled providers holding firm which is lively in danger, technique, and other people. The 4 essential world companies of the company are Marsh (insurance coverage dealer and danger administration), Man Carpenter (reinsurance and capital methods), Mercer (human assets and consulting) and Oliver Wyman (technique, financial and model consulting).
On July eleventh, 2023, Marsh McLennan declared a 20.3% quarterly dividend enhance to $0.71 per share.
Marsh McLennan reported second quarter 2023 outcomes on July twentieth, 2023. Consolidated income for the quarter elevated 9% year-over-year to $5.9 billion. Adjusted working revenue elevated 17% year-over-year to $1.5 billion, and adjusted EPS rose 16% to $2.20 for the quarter, in comparison with $1.89 in Q2 2022.
Click on right here to obtain our most up-to-date Positive Evaluation report on MMC (preview of web page 1 of three proven beneath):
No. 3: S&P World (SPGI)
Dividend Yield: 0.92%
Share of Portfolio: 4.27%
S&P World is a worldwide supplier of economic providers and enterprise data with a market capitalization of $113 billion and income of about $12 billion. Via its varied segments, it offers credit score scores, benchmarks and indices, analytics, and different information to commodity market contributors, capital markets, and automotive markets.
S&P World has paid dividends constantly since 1937 and has elevated its payout for 50 consecutive years.
S&P posted second quarter earnings on July twenty seventh, 2023, and outcomes had been considerably blended. Adjusted earnings-per-share got here to $3.12, which was a penny gentle towards expectations. Income was up 3.7% to $3.1 billion, which was forward of estimates by $40 million. Income gained as a result of broad energy throughout the enterprise, which included an 8% acquire in subscription merchandise.
Click on right here to obtain our most up-to-date Positive Evaluation report on SPGI (preview of web page 1 of three proven beneath):
No. 2: Microsoft Company (MSFT)
Dividend Yield: 0.83%
Share of OUSA Portfolio: 4.84%
Microsoft Company, based in 1975 and headquartered in Redmond, WA, develops, manufactures and sells each software program and {hardware} to companies and customers.
Its choices embody working programs, enterprise software program, software program improvement instruments, video video games and gaming {hardware}, and cloud providers.
In late July, Microsoft reported (7/25/23) monetary outcomes for the fourth quarter of fiscal 2023 (its fiscal 12 months ends June thirtieth). The corporate grew its income 8% over final 12 months’s quarter. Progress got here from Clever Cloud and Productiveness & Enterprise Processes, which grew 15% and 10%, respectively.
Gross sales of Azure, Microsoft’s high-growth cloud platform, grew 26%. Because of this, earnings-per-share grew 21%, from $2.23 to $2.69, and exceeded the analysts’ consensus by $0.14.
Click on right here to obtain our most up-to-date Positive Evaluation report on Microsoft (preview of web page 1 of three proven beneath):
No. 1: Dwelling Depot (HD)
Dividend Yield: 2.6%
Share of OUSA Portfolio: 5.14%
Dwelling Depot was based in 1978, and since that point has grown into the main house enchancment retailer with nearly 2,300 shops within the U.S., Canada, and Mexico. In all, Dwelling Depot generates annual income of roughly $130 billion.
Dwelling Depot reported second quarter 2023 outcomes on August fifteenth, 2023. The corporate reported second quarter gross sales of $42.9 billion, down 2.0% year-over-year. Comparable gross sales within the quarter additionally decreased 2.0%. Internet earnings equaled $4.7 billion, or $4.65 per share, in comparison with $5.2 billion, or $5.05 per share in Q2 2022.
Click on right here to obtain our most up-to-date Positive Evaluation report on HD (preview of web page 1 of three proven beneath):
Last Ideas
Kevin O’Leary has develop into a family title as a result of his appearances on the TV present Shark Tank. However he’s additionally a well known asset supervisor, and his funding philosophy largely aligns with Positive Dividend’s. Particularly, Mr. Fantastic sometimes invests in shares with massive and worthwhile companies, with sturdy steadiness sheets and constant dividend development yearly.
Not all of those shares are at the moment rated as buys within the Positive Evaluation Analysis Database, which ranks shares based mostly on anticipated whole return as a result of a mixture of earnings per share development, dividends, and modifications within the price-to-earnings a number of.
Nevertheless, a number of of those 10 shares are invaluable holdings for a long-term dividend development portfolio.
Extra Assets
See the articles beneath for evaluation on different main funding companies/asset managers/gurus:
If you’re fascinated by discovering extra high-quality dividend development shares appropriate for long-term funding, the next Positive Dividend databases will probably be helpful:
The key home inventory market indices are one other strong useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
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