‘A paid hack’: Nouriel Roubini just tore into Kevin O'Leary for his ties to bankrupt FTX, hopes CNBC will 'get rid of him' — but Mr. Wonderful still likes these low-risk stocks for income

Home Depot (NYSE:HD)

Home Depot may not seem as exciting as crypto, but it’s the top holding at OUSA, accounting for 5.08% 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.

While many brick-and-mortar retailers floundered during the pandemic, Home Depot grew its sales nearly 20% in fiscal 2020 to $132.1 billion.

And the company continued its momentum as the economy reopened.

In Q3 of Home Depot’s fiscal 2022, sales increased 5.6% year over year while earnings per share improved by 8.2%.

The company also raised its quarterly dividend by 15.2% to $1.90 per share earlier this year. At the current share price, it yields 2.4%.

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Microsoft (NASDAQ:MSFT)

Tech stocks aren’t known for their dividends, but software gorilla Microsoft is an exception.

The company announced a 10% increase to its quarterly dividend to 68 cents per share in September. Over the past five years, its quarterly payout has grown by 62%.

So it shouldn’t come as a surprise that Microsoft is the second-largest holding in O’Leary’s OUSA.

Of course, 2022 hasn’t been nice to tech stocks, and Microsoft was caught in the sell-off as well. Year-to-date, shares have fallen by 27%.

But business is on the right track. In the September quarter, revenue increased 11% from a year ago to $50.1 billion. On a constant currency basis, revenue growth was a more impressive 16%.

Notably, revenue from Microsoft’s Intelligent Cloud segment rose 20% year over year to $20.3 billion.

Given the downturn in its share price, Microsoft could give contrarian investors something to think about.

Johnson & Johnson (NYSE:JNJ)

With deeply entrenched positions in consumer health, pharmaceuticals and medical devices markets, healthcare giant Johnson & Johnson has delivered consistent returns to investors throughout economic cycles.

Many of the company’s consumer health brands — such as Tylenol, Band-Aid, and Listerine — are household names. In total, JNJ has 29 products each capable of generating over $1 billion in annual sales.

Not only does Johnson & Johnson post recurring annual profits, but it also grows them consistently: Over the past 20 years, Johnson & Johnson’s adjusted earnings have increased at an average annual rate of 8%.

JNJ announced its 60th consecutive annual dividend increase in April and now yields 2.6%.

The stock is also demonstrating its resilience in this ugly market: while the S&P 500 is down double digits year to date, JNJ shares are actually up 1% during the same period.

The company is currently the third-largest holding in OUSA with a weighting of 4.25%.

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