Nouriel Roubini simply tore into Kevin O’Leary for his ties to bankrupt FTX, hopes CNBC will ‘eliminate him’ — however Mr. Fantastic nonetheless loves these low-risk shares for earnings

The downfall of cryptocurrency change FTX has impacted fairly a couple of celebrities. That features Kevin O’Leary — a star on CNBC’s Shark Tank program — who was a spokesperson and investor within the change.

He’s getting known as out by famed economist Nouriel Roubini.

“Kevin O’Leary is a paid hack for FTX,” Roubini stated at Abu Dhabi Finance Week. “I hope that CNBC goes to eliminate him.”

To make sure, O’Leary has been one of many extra outspoken proponents of cryptocurrency, however that’s not his complete investing technique — removed from it.

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Mr. Fantastic is definitely a believer in investing in dividend shares.

“Once I began to do a little analysis I came upon one attention-grabbing incontrovertible fact that modified my funding philosophy eternally,” he stated in a Forbes interview. “Over the past 40 years, 71% of the market returns got here from dividends, not capital appreciation.”

“So rule one for me is I’ll by no means personal stuff that doesn’t pay a dividend. Ever.”

Should you share the identical view, right here’s a have a look at the three high holdings at O’Leary’s flagship ETF — ALPS O’Shares U.S. High quality Dividend ETF (OUSA).

House Depot (NYSE:HD)

House Depot could not appear as thrilling as crypto, however it’s the highest holding at OUSA, accounting for five.14% of the fund’s weight.

The house enchancment retail big has round 2,300 shops, with each averaging roughly 105,000 sq. ft of indoor retail area, dwarfing many opponents.

Whereas many brick-and-mortar retailers floundered throughout the pandemic, House Depot grew its gross sales almost 20% in fiscal 2020 to $132.1 billion.

And the corporate continued its momentum because the economic system reopened.

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In Q3 of House Depot’s fiscal 2022, gross sales elevated 5.6% 12 months over 12 months whereas earnings per share improved by 8.2%.

The corporate additionally raised its quarterly dividend by 15.2% to $1.90 per share earlier this 12 months. On the present share value, it yields 2.4%.

Microsoft (NASDAQ:MSFT)

Tech shares aren’t identified for his or her dividends, however software program gorilla Microsoft is an exception.

The corporate introduced a ten% enhance to its quarterly dividend to 68 cents per share in September. Over the previous 5 years, its quarterly payout has grown by 62%.

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

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After all, 2022 hasn’t been good to tech shares, and Microsoft was caught within the sell-off as properly. 12 months-to-date, shares have fallen by 28%.

However enterprise is heading in the right direction. Within the September quarter, income elevated 11% from a 12 months in the past to $50.1 billion. On a relentless forex foundation, income development was a extra spectacular 16%.

Notably, income from Microsoft’s Clever Cloud section rose 20% 12 months over 12 months to $20.3 billion.

Given the downturn in its share value, Microsoft may give contrarian buyers one thing to consider.

Johnson & Johnson (NYSE:JNJ)

With deeply entrenched positions in client well being, prescribed drugs and medical units markets, healthcare big Johnson & Johnson has delivered constant returns to buyers all through financial cycles.

Lots of the firm’s client well being manufacturers — corresponding to Tylenol, Band-Help, and Listerine — are family names. In complete, JNJ has 29 merchandise every able to producing over $1 billion in annual gross sales.

Not solely does Johnson & Johnson put up recurring annual earnings, however it additionally grows them persistently: Over the previous 20 years, Johnson & Johnson’s adjusted earnings have elevated at a median annual price of 8%.

JNJ introduced its sixtieth consecutive annual dividend enhance in April and now yields 2.6%.

The inventory can be demonstrating its resilience on this ugly market: whereas the S&P 500 is down double digits 12 months to this point, JNJ shares are literally up 3% throughout the identical interval.

The corporate is at present the third-largest holding in OUSA with a weighting of 4.32%.

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This text offers info solely and shouldn’t be construed as recommendation. It’s offered with out guarantee of any variety.