Up to date on February twelfth, 2025 by Bob Ciura
Kevin O’Leary is Chairman of O’Shares Funding Advisors, however you in all probability know him as “Mr. Fantastic”.
He will be seen on CNBC in addition to the tv present Shark Tank. Buyers who’ve seen him on TV have probably heard him talk about his funding philosophy.
Mr. Fantastic appears for shares that exhibit three primary traits:
First, they should be high quality firms with sturdy monetary efficiency and stable stability sheets.
Second, he believes a portfolio needs to be diversified throughout totally different market sectors.
Third, and maybe most necessary, he calls for earnings—he insists the shares he invests in pay dividends to shareholders.
You may obtain the entire checklist 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 earnings, diversified enterprise fashions, they usually pay dividends to shareholders.
The checklist 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: Cisco Techniques (CSCO)
Dividend Yield: 2.6%
Proportion of Portfolio: 3.29%
Cisco Techniques is the worldwide chief in excessive efficiency laptop networking programs. The corporate’s routers and switches permit networks world wide to attach to one another by the web.
Cisco additionally provides information heart, cloud, and safety merchandise. In the present day, Cisco employs greater than 79,000 individuals and generates virtually $54 billion in annual revenues.
On March 18th, 2024, Cisco accomplished its $28 billion buy of cybersecurity firm Splunk.
On November thirteenth, 2024, Cisco reported outcomes for the primary quarter of fiscal yr 2025 for the interval ending October twenty sixth, 2024. For the quarter, income decreased 5.7% to $13.8 billion, however this was $70 million greater than anticipated.
Adjusted earnings-per-share of $0.91 in contrast unfavorably to adjusted earnings-per-share of $1.11 within the prior yr, however this was $0.04 above estimates.
Excluding the corporate’s latest acquisition of Splunk, whole income fell 14%. For the quarter, Networking decreased 23% and Collaboration was decrease by 3% whereas Safety grew 100% and Observability was up 36%.
Click on right here to obtain our most up-to-date Positive Evaluation report on Cisco (preview of web page 1 of three proven beneath):
No. 9: Merck & Co. (MRK)
Dividend Yield: 3.7%
Proportion of OUSA Portfolio: 4.19%
Merck & Firm is likely one of the largest healthcare firms on the planet. Merck manufactures prescription medicines, vaccines, biologic therapies, and animal well being merchandise.
Merck employs 68,000 individuals world wide and generates annual revenues of greater than $63 billion.
Supply: Investor Presentation
On February 4th, 2025, Merck introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2024.
For the quarter, income improved 7% to $15.6 billion, which was $110 million above estimates. Adjusted earnings-per-share was $1.72 in comparison with $0.03 the prior yr and $0.04 greater than anticipated.
For the yr, income elevated 7% to $64.2 billion whereas adjusted earnings-per-share of $7.65.
Keytruda, which treats cancers resembling melanoma that can’t be eliminated by surgical procedure and non-small cell lung most cancers, continues to be the important thing driver of progress for the corporate as gross sales for the drug have been up 19% to $7.8 billion throughout the interval.
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. 8: McDonald’s Company (MCD)
Dividend Yield: 2.3%
Proportion of OUSA Portfolio: 3.50%
McDonald’s is the world’s main restaurant chain with 41,822 places 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. Nonetheless, the corporate owns about 55% of the actual property and 80% of the buildings in its community.
Whole 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. Whole 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 costs.
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. 7: Alphabet Inc. (GOOGL)
Dividend Yield: 0.44%
Proportion of OUSA Portfolio: 4.19%
Alphabet is a expertise conglomerate that operates a number of companies resembling Google search, Android, Chrome, YouTube, Nest, Gmail, Maps, and lots of extra. Alphabet is a pacesetter in most of the areas of expertise that it operates.
On February 4th, 2025, Alphabet introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2024. For the quarter, income grew 11.8% to $96.5 billion, however this was $170 million lower than anticipated.
Adjusted earnings-per-share of $2.15 in contrast very favorably to $1.64 within the prior yr and was $0.02 above estimates. For the yr, income grew 14% to $350 billion whereas adjusted earnings-per-share of $8.04 in comparison with $5.80 in 2023.
Most companies carried out properly throughout the interval. For the quarter, income for Google Search, the biggest contributor to outcomes, grew 12.5% to $54 billion. YouTube advertisements elevated 13.8% to $10.5 billion whereas Google Community declined 4.1% to simply beneath $8 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. 6: MasterCard Inc. (MA)
Dividend Yield: 0.54%
Proportion of OUSA Portfolio: 4.21%
MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments world wide to supply an digital fee community. MasterCard has greater than 3.1 billion credit score and debit playing cards in use.
On January thirtieth, 2025, MasterCard introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2024.
For the quarter, income improved 15.4% to $7.5 billion, which was $120 million above estimates. Adjusted earnings-per-share of $3.82 in contrast favorably to $3.18 within the prior yr and was $0.13 greater than anticipated.
For the yr, income grew 12% to $28.2 billion whereas adjusted earnings-per-share of $14.60 in comparison with $12.26 in 2023.
On an area foreign money foundation, gross greenback volumes for the quarter grew 12% worldwide to $2.56 trillion throughout the quarter, with the U.S. enhancing 9% and the remainder of the world increased by 13%.
Cross border volumes remained sturdy, rising 20% from the prior yr and 17% from Q3 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. 5: Johnson & Johnson (JNJ)
Dividend Yield: 3.2%
Proportion of OUSA Portfolio: 4.25%
Johnson & Johnson is a diversified well being care firm and a pacesetter within the space of progressive medicines and medical gadgets Johnson & Johnson was based in 1886 and employs almost 132,000 individuals world wide.
On January twenty second, 2025, Johnson & Johnson introduced fourth quarter and full yr outcomes for the interval ending December thirty first, 2024.
Supply: Investor Presentation
For the quarter, income grew 5.1% to $22.5 billion, which beat estimates by $50 million. Adjusted earnings-per-share of $2.04 in comparison with $2.29 within the prior yr, however this was $0.02 above expectations.
For the yr, income grew 4.3% to $88.8 billion whereas adjusted earnings-per-share of $9.98 was up barely from the prior yr. Outcomes included changes associated to the prices of acquisitions.
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. 4: Microsoft Company (MSFT)
Dividend Yield: 0.81%
Proportion of OUSA Portfolio: 4.66%
Microsoft Company manufactures and sells software program and {hardware} to companies and shoppers. Its choices embrace working programs, enterprise software program, software program growth instruments, video video games and gaming {hardware}, and cloud providers.
In late January, Microsoft reported (1/29/25) monetary outcomes for the second quarter of fiscal 2025 (its fiscal yr ends June thirtieth).
The corporate grew its income 12% over the prior yr’s quarter. Progress got here from Clever Cloud and Productiveness & Enterprise Processes, which grew 19% and 14%, respectively.
Gross sales of Azure, Microsoft’s high-growth cloud platform, grew 31%. Earnings-per-share grew 10%, from $2.94 to $3.23, and exceeded the analysts’ consensus by $0.13.
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: Apple (AAPL)
Dividend Yield: 0.43%
Proportion of OUSA Portfolio: 5.05%
Apple designs, manufactures and sells merchandise resembling 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. Whole gross sales grew 6% over the prior yr’s quarter, to a brand new fourth-quarter document of $94.9 billion, due to 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. 2: Residence Depot (HD)
Dividend Yield: 2.2%
Proportion of OUSA Portfolio: 5.36%
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.
Nonetheless, 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. 1: Visa Inc. (V)
Dividend Yield: 0.68%
Proportion of OUSA Portfolio: 5.93%
Visa is the world’s chief in digital funds, with exercise in additional than 200 international locations. The corporate’s international processing community supplies safe and reliable funds world wide and is able to dealing with greater than 65,000 transactions a second.
On January thirtieth, 2025, Visa reported first quarter 2025 outcomes for the interval ending December thirty first, 2024. (Visa’s fiscal yr ends September thirtieth.)
For the quarter, Visa generated income of $9.5 billion, adjusted web earnings of $5.5 billion and adjusted earnings-per-share of $2.75, marking will increase of 10%, 11% and 14%, respectively.
These outcomes have been pushed by a 9% achieve in Funds Quantity, a 16% achieve in Cross-Border Quantity and an 11% achieve in Processed Transactions. Visa processed 63.8 billion transactions within the quarter.
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):
Closing Ideas
Kevin O’Leary has turn out to be a family identify resulting from 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 stability sheets and constant dividend progress yearly.
Not all of those shares are presently rated as buys within the Positive Evaluation Analysis Database, which ranks shares based mostly on anticipated whole return resulting from a mixture of earnings per share progress, dividends, and adjustments within the price-to-earnings a number of.
Nonetheless, a number of of those 10 shares are worthwhile holdings for a long-term dividend progress portfolio.
Extra Sources
In case you are fascinated with discovering extra high-quality dividend progress shares appropriate for long-term funding, the next Positive Dividend databases will probably be helpful:
The most important home inventory market indices are one other stable useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month:
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