You probably know Kevin O’Leary, from the hit show Shark Tank, for his piercing questions, snarky comments, and razor sharp valuations. Always wanted to invest with the Sharks? Well now you can, through a new ETF managed by O’Leary’s company O’Shares Investments. The ETF, OUSA, is focused on stable value creation through liquid assets. The companies targeted by OUSA all provide dividends, stable growth, and low volatility. O’Leary believes that by combining these three important factors, investors can create a stable income-generating portfolio.
Below, we highlight the top 10 holdings of O’Leary’s OUSA.
1. Johnson & Johnson {% dividend JNJ %}: 5.03% of Total Holdings
- TTM (ex-dividend): -0.80%
- Market Cap: $275.17 billion
- P/E: 17.51
- 52-Week Range: $95.10 – $109.49
- Current Dividend Yield: 3.03%
- Dividend Growth: 52 years
Johnson & Johnson develops and manufactures various health care products, operating in three major segments: Consumer, Pharmaceutical, and Medical Devices. JNJ is the largest holding in O’Leary’s OUSA due to the stock’s tight 52-week range and strong dividend performance.
2. Apple Inc. {% dividend AAPL %}: 4.71% of Total Holdings
- TTM (ex-dividend): +17.87%
- Market Cap: $664.37 billion
- P/E: 13.48
- 52-Week Range: $95.18 – $134.54
- Current Dividend Yield: 1.80%
- Dividend Growth: 2 years
Everyone knows Apple Computers, one of the most valuable brands in the world. The company manufactures cell phones, computers, and wearable devices. It is the second-largest company in OUSA as it now pays a dividend and has shown tremendous growth over the last 10 years.
3. Exxon Mobil Corporation {% dividend XOM %}: 4.65% of Total Holdings
- TTM (ex-dividend): -19.18%
- Market Cap: $324.80 billion
- P/E: 13.86
- 52-Week Range: $76.33 – $100.31
- Current Dividend Yield: 3.80%
- Dividend Growth: 32 years
Exxon Mobil Corporation is the fourth-largest oil company in the world, involved in all facets of the oil and natural gas supply chain. Exxon displays historically strong dividend performance, while currently trading at a historically low P/E ratio of 13.86.
4. Microsoft Corp. {% dividend MSFT %}: 3.86% of Total Holdings
- TTM (ex-dividend): +7.09%
- Market Cap: $378.06 billion
- P/E: 31.94
- 52-Week Range: $40.12 – $50.05
- Current Dividend Yield: 2.66%
- Dividend Growth: 11 years
At one time Microsoft was the largest technology company in the world, but it has since been replaced by Apple. However, Microsoft isn’t done yet. With the unprecedented free release of Windows 10, Microsoft is making significant moves. MSFT is the fourth-largest holding in OUSA because of its tight 52-week range and strong annual growth.
5. Verizon Communications {% dividend VZ %}: 3.63% of Total Holdings
- TTM (ex-dividend): +2.03%
- Market Cap: $192.96 billion
- P/E: 19.77
- 52-Week Range: $45.09 – $51.73
- Current Dividend Yield: 4.65%
- Dividend Growth: 8 years
Verizon Communications boasts the largest cell phone network in the USA. Its stock has only moved up by 2% year-to-date, but has very low volatility and pays a solid dividend. For these two reasons it is included in OUSA.
6. AT&T Inc. {% dividend T %}: 3.61% of Total Holdings
- TTM (ex-dividend): +5.24%
- Market Cap: $211.29 billion
- P/E: 33.94
- 52-Week Range: $32.07 – $36.45
- Current Dividend Yield: 5.50%
- Dividend Growth: 30 years
AT&T is a 100-year-old communications company, with deep business relationships over the East Coast of the U.S. If you remember, AT&T exclusively sold the iPhone which gave it a momentary competitive advantage. The company has raised its dividend consistently over the last 30 years and has low volatility.
7. Pfizer Inc. {% dividend PFE %}: 3.38% of Total Holdings
- TTM (ex-dividend): +26.91%
- Market Cap: $219.06 billion
- P/E: 25.21
- 52-Week Range: $27.51 – $36.46
- Current Dividend Yield: 3.18%
- Dividend Growth: 5 years
Pfizer is a global leader in pharmaceutical research, manufacturing, and distribution. The company’s stock has had a fantastic year, moving up by almost 30%. PFE is included in OUSA because of its strong growth, tight 52-week range, and healthy dividend.
8. Philip Morris International {% dividend PM %}: 3.05% of Total Holdings
- TTM (ex-dividend): +3.31%
- Market Cap: $130.16 billion
- P/E: 17.58
- 52-Week Range: $75.27 – $90.25
- Current Dividend Yield: 4.79%
- Dividend Growth: 7 years
Philip Morris International is the largest cigarette company in the world. Despite continuous health concerns, PM is still up +3.31% on the year and is providing a solid dividend of almost 5% annually. This company is resilient and that is why it is included in OUSA.
9. Procter & Gamble Co. {% dividend PG %}: 2.93% of Total Holdings
- TTM (ex-dividend): -6.29%
- Market Cap: $203.79 billion
- P/E: 30.79
- 52-Week Range: $74.75 – $93.89
- Current Dividend Yield: 3.57%
- Dividend Growth: 58 years
Procter & Gamble manufactures and sells branded consumer products worldwide. These products are divided into five sections: Beauty, Hair and Personal Care, Grooming, Health Care, Fabric Care and Home Care, and Family Care. It seems the stock market doesn’t care as much as PG; their stock is down 6% on the year. Nothing to worry about, however, PG has raised their dividend for 58 straight years and pays a healthy yield.
10. Chevron Corp. {% dividend CVX %}: 2.44% of Total Holdings
- TTM (ex-dividend): -31.86%
- Market Cap: $156.91 billion
- P/E: 12.88
- 52-Week Range: $82.82 – $129.53
- Current Dividend Yield: 5.20%
- Dividend Growth: 29 years
Chevron Corp. is the sixth-largest oil conglomerate in the world, with its hands in all energy resource pies, up and down the oil supply chain. The company’s stock has taken a recent hit due to lower oil prices, however, has managed to raise dividends for the past 29 years. The company is included in OUSA because of its cyclically low P/E and strong dividend history.
