Nouriel Roubini simply tore into Kevin O’Leary for his ties to bankrupt FTX, hopes CNBC will ‘do away with him’ — however Mr. Great nonetheless likes these low-risk shares for revenue

The downfall of cryptocurrency alternate 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 alternate.

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

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

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

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

“After I began to do a little analysis I came upon one attention-grabbing proven fact that modified my funding philosophy perpetually,” he mentioned 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).

Residence Depot (NYSE:HD)

Residence Depot could not appear as thrilling as crypto, however it’s the highest holding at OUSA, accounting for five.08% of the fund’s weight.

The house enchancment retail large has round 2,300 shops, with each averaging roughly 105,000 sq. toes of indoor retail house, dwarfing many rivals.

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

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

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In Q3 of Residence Depot’s fiscal 2022, gross sales elevated 5.6% yr over yr 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 yr. On the present share value, it yields 2.4%.

Microsoft (NASDAQ:MSFT)

Tech shares aren’t recognized 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.

Learn extra: You’re in all probability overpaying once you store on-line — get this free device earlier than Black Friday

In fact, 2022 hasn’t been good to tech shares, and Microsoft was caught within the sell-off as nicely. Yr-to-date, shares have fallen by 27%.

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

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

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

Johnson & Johnson (NYSE:JNJ)

With deeply entrenched positions in client well being, prescription drugs and medical gadgets markets, healthcare large Johnson & Johnson has delivered constant returns to traders all through financial cycles.

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

Not solely does Johnson & Johnson submit recurring annual income, however it additionally grows them constantly: Over the previous 20 years, Johnson & Johnson’s adjusted earnings have elevated at a mean 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 yr so far, JNJ shares are literally up 1% throughout the identical interval.

The corporate is at the moment the third-largest holding in OUSA with a weighting of 4.25%.

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