Home Depot (HD)
Home Depot may not seem as exciting as crypto, but it’s the top holding at OUSA, accounting for 6.1% of the fund’s weight.
The home improvement retail giant has around 2,300 stores, with each one averaging approximately 105,000 square feet of indoor retail space, dwarfing many competitors.
And while other brick-and-mortar retailers have floundered during the pandemic, Home Depot grew its sales nearly 20% in fiscal 2020 to $132.1 billion. It even boosted its quarterly dividend by 10% earlier this year and now yields 1.6%.
Shares aren’t cheap, though.
After rallying more than 55% year to date, Home Depot trades at over $400 per share. But you can always get a smaller piece of the company using a popular app that allows you to buy fractions of shares with as much money as you are willing to spend.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreMicrosoft (MSFT)
Tech stocks aren’t known for their dividends, but software gorilla Microsoft is an exception.
The company announced an 11% increase to its quarterly dividend to 62 cents per share in September. Over the past five years, its payout has grown by 59%.
So it shouldn’t come as a surprise that Microsoft is the second-largest holding in O’Leary’s OUSA.
Business has been booming of late, partially driven by the pandemic-fueled demand for its cloud-computing and video-gaming offerings.
In the September quarter, Microsoft's revenue grew 22% year-over-year to $45.3 billion while adjusted earnings per share surged 25% to $2.27.
Year-to-date, Microsoft shares have returned an impressive 53%, easily topping other trillion-dollar tech giants like Apple (31%) and Amazon (11%).
Still, if you’re hesitant to go deep on tech stocks near all-time highs, you can always build a diversified portfolio automatically just by using your “spare change.”
Procter & Gamble (PG)
Procter & Gamble belongs to a group of companies commonly known as the Dividend Kings: publicly traded businesses with at least 50 consecutive years of dividend increases.
In fact, P&G makes the list with ease. In April, the board of directors announced a 10% increase to the quarterly payout, marking the company’s 65th consecutive annual dividend hike.
It’s not hard to see why the company is able to maintain such a streak.
P&G is a consumer staples giant with a portfolio of trusted brands like Bounty paper towels, Crest toothpaste, Gillette razor blades and Tide detergent. These are products households buy on a regular basis, no matter how the economy or their personal finances are faring.
Thanks to the recession-resistant nature of P&G’s business, it can deliver reliable dividends through thick and thin.
Shares are up 10% year-to-date. That may not seem like much compared to Home Depot and Microsoft, but long-term investors can look back on many decades of strong performance.
The company offers an annual dividend yield of 2.3% and is currently the third-largest holding in OUSA with a weighting of 4.8%.
This 2 minute move could knock $500/year off your car insurance in 2024
Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.
There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.
Get StartedO’Leary’s other ‘fine’ asset
Dividends provide a great source of passive income, but you don’t have to limit yourself to the stock market.
These days, retail investors have access to a variety of alternative investments, many of which offer impressive cash income.
Traditionally, these opportunities have been available only to the ultra rich, like O’Leary.
But now, with the help of new platforms, a single $500 investment can build a fixed-income portfolio spread across multiple asset classes that include fine art, commercial real estate and even marine finance.
Sponsored
Follow these steps if you want to retire early
Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.
Advisor is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.