Up to date on January fifteenth, 2025 by Bob Ciura
Kevin O’Leary is Chairman of O’Shares Funding Advisors, however you in all probability know him as “Mr. Great”.
He might be seen on CNBC in addition to the tv present Shark Tank. Buyers who’ve seen him on TV have doubtless heard him focus on his funding philosophy.
Mr. Great appears for shares that exhibit three foremost traits:
- First, they have to be high quality corporations with sturdy monetary efficiency and strong steadiness sheets.
- Second, he believes a portfolio ought to be diversified throughout completely different market sectors.
- Third, and maybe most vital, he calls for earnings—he insists the shares he invests in pay dividends to shareholders.
You possibly can obtain the entire 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 fascinating supply of high quality dividend progress 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: Comcast Company (CMCSA)
Dividend Yield: 3.4%
Share of Portfolio: 3.26%
Comcast is a media, leisure and communications firm. Its enterprise models embody Cable Communications (Excessive–Pace Web, Video, Enterprise Providers, Voice, Promoting, Wi-fi), NBCUniversal (Cable Networks, Theme Parks, Broadcast TV, Filmed Leisure), and Sky, a number one leisure firm in Europe.
Comcast reported its Q3 2024 outcomes on Oct. thirty first, 2024. For the quarter, the corporate’s income rose 6.5% to $32.1 billion yr over yr. Adjusted EBITDA (a money stream proxy) was down 2.3% to $9.7 billion.
Supply: Investor Presentation
Nevertheless, it was capable of enhance adjusted earnings-per-share (EPS) by 3.3% to $1.12. And Comcast generated free money stream (FCF) of $3.4 billion. The Connectivity & Platforms section’s revenues have been down 0.4% to $20.3 billion.
The section skilled adjusted EBITDA rising marginally by 0.7% to $8.3 billion, helped by margins growth of 0.5% to 40.9%. The Content material & Experiences section noticed income develop 19% to $12.6 billion, whereas its adjusted EBITDA fell 8.7% to $1.8 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on Comcast (preview of web page 1 of three proven beneath):
No. 9: McDonald’s Company (MCD)
Dividend Yield: 2.5%
Share of OUSA Portfolio: 3.38%
McDonald’s is the world’s main restaurant chain with 41,822 areas in about 119 international locations at finish of 2022. The very best retailer counts are within the US (13,449), China (5,903), Japan (2,982), France (1,560), and Canada (1,466).
Roughly 95% of the shops are franchised or licensed and the remaining are firm owned. Nevertheless, the corporate owns about 55% of the actual property and 80% of the buildings in its community.
Complete system gross sales have been roughly $129.5B in 2023 and whole income was round $25.5B in 2023.
On October twenty ninth, McDonald’s reported Q3 2024 outcomes. Complete income got here in at $6.87 billion, rising 3% on flat system-wide gross sales adjusting for foreign money headwinds. Diluted earnings dropped 1% to $3.13 per share in comparison with $3.17 per share in comparable durations on pre-tax expenses.
On a geographic foundation, comparable gross sales elevated 0.3% within the US, -2.1% within the Worldwide Operated Markets, and -3.5% within the Worldwide Developmental Licensed Markets.
Click on right here to obtain our most up-to-date Positive Evaluation report on MCD (preview of web page 1 of three proven beneath):
No. 8: MasterCard Inc. (MA)
Dividend Yield: 0.59%
Share of OUSA Portfolio: 3.96%
MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments around the globe to offer an digital fee community. MasterCard has greater than 3.1 billion credit score and debit playing cards in use.
On October thirty first, 2024, MasterCard reported third quarter outcomes for the interval ending September thirtieth, 2024. For the quarter, income grew 12.9% to $7.4 billion, which was $100 million above estimates.
Adjusted earnings-per-share of $3.89 in contrast favorably to $3.39 within the prior yr and was $0.14 increased than anticipated.
On a neighborhood foreign money foundation, gross greenback volumes for the quarter grew 10% worldwide to $2.5 trillion in the course of the quarter, with the U.S. up 7% and the remainder of the world increased by 12%.
Cross border volumes remained sturdy with progress of twenty-two% from the prior yr and up from 17% progress in Q2 2024.
Click on right here to obtain our most up-to-date Positive Evaluation report on Mastercard (preview of web page 1 of three proven beneath):
No. 7: Johnson & Johnson (JNJ)
Dividend Yield: 3.4%
Share of OUSA Portfolio: 4.10%
Johnson & Johnson is a diversified well being care firm and a pacesetter within the space of progressive medicines and medical units Johnson & Johnson was based in 1886 and employs almost 132,000 individuals around the globe. The corporate is projected to generate greater than $89 billion in income this yr.
On April sixteenth, 2024, Johnson & Johnson introduced that it was rising its quarterly dividend 4.2% to $1.24, extending the corporate’s dividend progress streak to 62 consecutive years.
On Might thirty first, 2024, Johnson & Johnson accomplished its $13.1 billion buy of cardiovascular medical system firm Shockwave Medical.
On October fifteenth, 2024, Johnson & Johnson reported third quarter outcomes for the interval ending September thirtieth, 2024.
Supply: Investor Presentation
For the quarter, income elevated 5.4% to $22.5 billion, which topped estimates by $330 million. Adjusted earnings-per-share of $2.42 in comparison with $2.82 within the prior yr, however this was $0.21 higher than anticipated.
Excluding Covid-19 vaccine gross sales, the corporate’s income grew 5.6% within the third quarter. Income for Revolutionary Medicines grew 4.9% on a reported foundation, however improved 6.3% when excluding foreign money translation.
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. 6: Merck & Co. (MRK)
Dividend Yield: 3.2%
Share of OUSA Portfolio: 4.19%
Merck & Firm is without doubt one of the largest healthcare corporations on this planet. Merck manufactures prescription medicines, vaccines, biologic therapies, and animal well being merchandise. Merck employs 68,000 individuals around the globe and generates annual revenues of greater than $63 billion.
On Might twenty ninth, 2024, Merck accomplished its $1.3 billion buy of EyeBio, which has a pipeline of drug candidates that focus on retinal illnesses.
On October thirty first, 2024, Merck reported third quarter outcomes for the interval ending September thirtieth, 2024. For the quarter, income grew 4.4% to $16.7 billion, which was $190 million above expectations. Adjusted earnings-per-share was $1.57 in comparison with $2.13 within the prior yr and was in-line with estimates.
Keytruda, which treats cancers akin to melanoma that can not be eliminated by surgical procedure and non-small cell lung most cancers, continues to be the important thing driver of progress for the corporate and had income progress of 17% to $7.4 billion in the course of the interval. The product generated $25 billion in 2023, up from $20.9 billion within the prior yr.
Click on right here to obtain our most up-to-date Positive Evaluation report on MRK (preview of web page 1 of three proven beneath):
No. 5: Alphabet Inc. (GOOGL)
Dividend Yield: 0.41%
Share of OUSA Portfolio: 4.47%
Alphabet is a know-how conglomerate that operates a number of companies akin to Google search, Android, Chrome, YouTube, Nest, Gmail, Maps, and lots of extra. Alphabet is a pacesetter in most of the areas of know-how that it operates. On October twenty ninth, 2024, Alphabet reported third quarter outcomes for the interval ending September thirtieth, 2024.
As had been the case for a number of quarters, the corporate delivered higher than anticipated outcomes. Income grew 15.1% to $88.3 billion for the interval and beat analysts’ estimates by $2.05 billion. Adjusted earnings-per-share of $2.12 in contrast very favorably to $1.55 within the prior yr and was $0.27 above expectations.
As soon as once more, almost each side of Alphabet’s enterprise carried out properly in the course of the quarter. Income for Google Search, the biggest contributor to outcomes, elevated greater than 12% to $49.4 billion. YouTube adverts grew 12.2% to $8.9 billion whereas Google Community declined 1.6% to $7.5 billion. Google subscriptions, platforms, and units have been up nearly 28% to $10.7 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on GOOGL (preview of web page 1 of three proven beneath):
No. 4: Microsoft Company (MSFT)
Dividend Yield: 0.78%
Share of OUSA Portfolio: 4.91%
Microsoft Company manufactures and sells software program and {hardware} to companies and shoppers. Its choices embody working techniques, enterprise software program, software program improvement instruments, video video games and gaming {hardware}, and cloud providers.
On October thirty first, 2024, MasterCard reported third quarter outcomes for the interval ending September thirtieth, 2024. For the quarter, income grew 12.9% to $7.4 billion, which was $100 million above estimates.
Adjusted earnings-per-share of $3.89 in contrast favorably to $3.39 within the prior yr and was $0.14 increased than anticipated.
On a neighborhood foreign money foundation, gross greenback volumes for the quarter grew 10% worldwide to $2.5 trillion in the course of the quarter, with the U.S. up 7% and the remainder of the world increased by 12%.
Cross border volumes remained sturdy with progress of twenty-two% from the prior yr and up from 17% progress in Q2 2024.
Click on right here to obtain our most up-to-date Positive Evaluation report on MSFT (preview of web page 1 of three proven beneath):
No. 3: Residence Depot (HD)
Dividend Yield: 2.2%
Share of OUSA Portfolio: 5.27%
Residence Depot was based in 1978 and since that point has grown right into a juggernaut residence enchancment retailer with over 2,300 shops within the US, Canada and Mexico that generate round $153 billion in annual income.
Residence Depot reported third quarter 2024 outcomes on November twelfth, 2024. The corporate reported gross sales of $40.2 billion, up 6.6% year-over-year.
Nevertheless, comparable gross sales within the quarter decreased 1.3%. Internet earnings equaled $3.6 billion, or $3.67 per share, in comparison with $3.8 billion, or $3.81 per share in Q3 2023. Adjusted EPS was $3.78.
The corporate spent $649 million on widespread inventory repurchases year-to-date, in comparison with $6.5 billion within the prior yr. Common ticket declined 0.8% in comparison with final yr, from $89.36 to $88.65.
Moreover, gross sales per retail sq. foot decreased 2.1% from $595.71 to $582.97.
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):
No. 2: Apple (AAPL)
Dividend Yield: 0.42%
Share of OUSA Portfolio: 5.28%
Apple designs, manufactures and sells merchandise akin to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a providers enterprise that sells music, apps, and subscriptions.
On October thirty first, 2024, Apple reported monetary outcomes for the fourth quarter of fiscal yr 2024. Complete gross sales grew 6% over the prior yr’s quarter, to a brand new fourth-quarter document of $94.9 billion, because of sustained progress in iPhone, iPad and Wearables throughout all areas.
Earnings-per-share grew 12%, from $1.46 to $1.64, and exceeded the analysts’ consensus by $0.04.
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. 1: Visa Inc. (V)
Dividend Yield: 0.75%
Share of OUSA Portfolio: 5.45%
Visa is the world’s chief in digital funds, with exercise in additional than 200 international locations. The corporate’s world processing community gives safe and reliable funds around the globe and is able to dealing with greater than 65,000 transactions a second.
On October twenty ninth, 2024, Visa introduced a 13.5% enhance to the dividend to $2.36 per share yearly. It additionally launched quarterly earnings the identical day.
For the quarter, Visa generated income of $9.6 billion, adjusted internet earnings of $5.4 billion and adjusted earnings-per-share of $2.71, marking will increase of 12%, 13% and 16%, respectively.
These outcomes have been pushed by an 8% achieve in Funds Quantity, a 13% achieve in Cross-Border Quantity and a ten% achieve in Processed Transactions.
Visa processed 61.5 billion transactions within the quarter. In the course of the quarter, Visa returned $6.8 billion to shareholders through dividends and share repurchases. Visa repurchased 22 million shares of sophistication A typical inventory within the quarter for $5.8 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on Visa (preview of web page 1 of three proven beneath):
Remaining Ideas
Kevin O’Leary has grow to be a family title on account of his appearances on the TV present Shark Tank. However he’s additionally a widely known asset supervisor, and his funding philosophy largely aligns with Positive Dividend’s.
Particularly, Mr. Great usually invests in shares with giant and worthwhile companies, with sturdy steadiness sheets and constant dividend progress yearly.
Not all of those shares are at the moment rated as buys within the Positive Evaluation Analysis Database, which ranks shares primarily based on anticipated whole return on account of a mixture of earnings per share progress, dividends, and adjustments within the price-to-earnings a number of.
Nevertheless, a number of of those 10 shares are beneficial holdings for a long-term dividend progress portfolio.
Extra Assets
If you’re focused on discovering extra high-quality dividend progress shares appropriate for long-term funding, the next Positive Dividend databases shall be helpful:
The main 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:
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