Here Are the Top 10 Holdings in Donald Trump’s Stock Portfolio
Donald Trump Stocks to Own
President Donald Trump is known for many things. He ran a huge real estate business, hosted and produced the reality TV show The Apprentice, and had a net worth north of $3.0 billion. Now, he is America’s 45th Commander in Chief. Having moved from Fifth Avenue to Pennsylvania Avenue, personal business and investments are no longer a priority for President Trump. However, investors might still want to know what’s inside President Donald Trump’s stock portfolio. So let’s take a look.
In the world of investing, President Trump is not as widely followed as legendary investors like Warren Buffett and George Soros. That’s because for many decades, President Trump’s main focus was his real estate and construction company, The Trump Organization. And that focus was reflected in the size of President Donald Trump’s stock holdings relative to his net worth. According to Forbes, the U.S. President has a net worth of $3.7 billion. His filing to the Federal Elections Committee in May 2016 showed that the value of his liquid investments was less than $170.0 million, so stocks were just a small part of President Trump’s holdings. (Source: “Executive Branch Personnel Public Financial Disclosure Report (OGE Form 278e),” OpenSecrets.org, May 16, 2016.)
So, what stocks did Donald Trump invest in?
Well, according to the filing, President Trump was very much an income investor when it comes to stocks. His top holdings were all dividend-paying stocks, including some favorite names of income investors. President Donald Trump’s stock picks were also diversified: his investments could be found in consumer goods, energy, and banking industries, among others.
Below is a list of the top 10 President Donald Trump stock holdings according to the filing. Note that rather than requiring an exact share count or value of each holding, the Federal Elections Committee allows candidates to provide broad estimates of asset worth.
Top 10 Stocks Donald Trump Has Invested In
Company NameTicker SymbolDividend YieldValue
|General Electric Company||GE||3.25%||$100,000–$250,000|
|JPMorgan Chase & Co.||JPM||2.27%||$100,000–$250,000|
|Johnson & Johnson||JNJ||2.83%||$100,000–$250,000|
Donald Trump Investments
10. Visa Inc
Visa Inc (NYSE:V) is a multinational payments technology company headquartered in San Francisco, California. The company operates “VisaNet,” which is one of the fastest processing networks in the world, capable of handling more than 65,000 transaction messages a second.
Investors should note that the credit card network business has high barriers to entry. If a company wants to compete with Visa, it would need to have tens of thousands of businesses on its payment network and convince millions of consumers to sign up for its service. These tasks require a significant amount of capital, which is why the industry is dominated by just four companies: Visa, Mastercard Inc (NYSE:MA), American Express Company (NYSE:AXP), and Discover Financial Services (NYSE:DFS).
Right now, Visa is the top player in the credit card network industry. (Source: “Here are the credit card networks you need to know,” Business Insider, December 22, 2016.)
Visa stock currently trades at $82.58 per share and has an annual dividend yield of 0.8%.
9. General Electric Company
General Electric Company (NYSE:GE) stock is a familiar name to dividend investors. Paying $0.24 on a quarterly basis, the company has an annual dividend yield of 3.25%.
General Electric is a multinational conglomerate that operates through eight segments: Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Energy Connections & Lighting, and Capital.
The company is going through a massive restructuring process, divesting its financial business, GE Capital. In 2016 alone, GE Capital signed $40.0 billion of asset sales, reaching $197.0 billion since the company announced the exit plan. This also means the company nearly completed the $200.0-billion target of GE Capital asset dispositions one year ahead of plan. (Source: “GE 4Q 2016 Earnings,” General Electric Company, January 20, 2017.)
8. Phillips 66
Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics company. It operates through four main segments: Midstream, Refining, Chemicals, and Marketing & Specialties. Headquartered in Houston, Texas, the company processes, transports, stores, and markets energy products worldwide.
Phillips 66 was spun off from ConocoPhillips (NYSE:COP) in April 2012. While the energy industry experienced a huge downturn since the drop in commodity prices started in 2014, Phillips 66 stock was quick to recover. Furthermore, the company has been raising its payout to income investors. Since PSX stock began trading in 2012, its quarterly dividend rate has more than tripled.
Phillips 66 currently has an annual dividend yield of 3.09%.
7. McKesson Corporation
McKesson Corporation (NYSE:MCK) is a health services and information technology company headquartered in San Francisco, California. It is the oldest and largest health care company in America, serving over 50% of U.S. hospitals, 20% of physicians and 96% of the top 25 health plans. (Source: “Key Facts,” McKesson Corporation, last accessed January 31, 2017.)
McKesson operates through two main segments, Distribution Solutions and Technology Solutions. The Distribution Solutions segment delivers pharmaceutical and medical products, and business services to pharmacies and hospitals, while the Technology Solutions segment provides software solutions, services, and consulting to hospitals, physician offices, imaging centers, and other healthcare agencies.
The company pays $0.28 of dividends per share on a quarterly basis, translating to an annual dividend yield of 0.81%.
6. Nike Inc
Nike Inc (NYSE:NKE) is the biggest sportswear company in the world. It designs, markets, and distributes athletic apparel, footwear, and more for numerous physical activities.
Last year was tough for Nike stock. While all three major indices of the U.S. stock market soared past their all-time highs, Nike shares tumbled. It was the worst performer among the Dow 30 companies in 2016.
The thing is, though, the company wasn’t really doing that bad. According to the most recent quarterly report, Nike’s quarterly revenue grew six percent year-over-year to $8.2 billion, and would have increased eight percent under constant currency. Earnings came in at $0.50 per share, up 11% from the year-ago period. (Source: “Nike, Inc. Reports Fiscal 2017 Second Quarter Results,” Nike Inc, December 20, 2016.)
Nike also pays dividends. It currently has a quarterly dividend rate of $0.18 per share, translating to an annual yield of 1.36%. Over the past decade, the company’s quarterly payout has grown by 291%.
5. JPMorgan Chase & Co.
If you have paid any attention to finance, you would have heard of JPMorgan Chase & Co. (NYSE:JPM). With assets of $2.5 trillion, JPMorgan is the largest bank in the U.S. and one of the largest banks in the world. The company provides a wide variety of services, including investment banking, consumer and commercial banking, financial transaction processing, and asset management.
Over the past several years, JPMorgan has been consistently growing its business. As a result, its stock price has also been trending up. The biggest catalyst, however, has been the surprise victory of President Trump in the election; since November 8, JPM stock has surged over 20%.
Trading at $84.63 per share, JPMorgan has a dividend yield of 2.27%.
4. Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) stock has been a staple in many income investors’ portfolios. The company been raising its dividends every single year for the past 54 years. That makes Johnson & Johnson a “dividend king,” a title given to companies that have increased their dividends every year for at least 50 years. Among the thousands of companies trading in the stock market, there are only 18 “dividend kings.”
Behind JNJ stock’s impressive dividend history is the company’s entrenched positions in several recession-proof industries. Johnson & Johnson operates through three business segments: Consumer, Pharmaceutical, and Medical Devices. The demand for its products are relatively inelastic to how the economy is doing; that’s why the company is able to deliver recession-proof dividends to income investors.
JNJ stock has fallen quite a bit since last summer and is trading at less than 20 times its earnings. The company is currently yielding 2.83%.
3. PepsiCo, Inc.
PepsiCo, Inc. (NYSE:PEP) is a multinational food, snack, and beverage company. Headquartered in Purchase, New York, it has some of the most recognizable brands in the world, such as “Pepsi” and “Frito-Lay.”
As a century-old company commanding nearly $150.0 billion of market cap, Pepsi stock has done quite well for itself. In the past five years, shares of PEP stock climbed 55.7%.
With the rise in its stock price, PepsiCo is no longer a cheap stock. That said, its dividends still look attractive. Paying $0.7525 per share each quarter, PEP stock has an annual dividend yield of 2.9%. Moreover, the company has raised its quarterly payout in each of the past 44 years.
2. Microsoft Corporation
Other than investing in consumer goods, banking, and energy companies, President Trump also owned tech stocks. One of them is Microsoft Corporation (NASDAQ:MSFT).
The company is known for making “Windows” operating system and “Office” productivity suite. Today, it also has a fast-growing cloud services segment and even makes hardware devices.
Because of its ability to generate recurring revenue from software and services, Microsoft stock is able to return money to investors in the form of dividends. Paying $0.38 per share each quarter, MSFT stock has an annual dividend yield of 2.41%.
Furthermore, the company is also buying back its shares. It is currently pursuing a $40.0-billion share repurchase program that was announced last September.
1. Apple Inc.
President Trump might not be a fan of Silicon Valley, but that didn’t prevent him from owning some shares of Apple Inc. (NASDAQ:AAPL). In fact, according to his filing, Apple stock was his largest stock market holding.
For the most part of the past two years, Apple stock hasn’t really been a stock market favorite, because “iPhone” sales were losing momentum. Since iPhone sales were the No. 1 revenue source for Apple, declining sales numbers became a major concern for Apple stock.
Now, things are changing. The company reported its December quarter earnings after the bell on January 31. For the quarter, Apple’s revenue grew three percent year-over-year to a new record of $78.4 billion, beating Wall Street’s expectation of $77.3 billion. The bottom line was impressive as well, with Apple delivering earnings of $3.36 per share, topping analysts’ earnings per share estimates of $3.25. (Source: “Apple Reports Record First Quarter Results,” Apple Inc., January 31, 2017.)
More importantly, iPhone sales are now back on track. Apple sold 78.3 million units of the iPhone in the December quarter, representing a five-percent increase year-over-year.
Final Thoughts on President Donald Trump’s Stock Portfolio
These are stocks that President Trump held in his portfolio according to the filing in May 2016. He won’t be required to submit another financial disclosure until May 2018. However, in December 2016, President Trump’s spokesman, Jason Miller, said that the President has sold all of his stocks. The sale could address potential conflicts of interest in his portfolio. (Source: “Donald Trump Sold All His Stockholdings in June, Transition Spokesman Says,” The Wall Street Journal, December 6, 2016.)
Still, the list of President Trump’s stock holdings shows that if you are a busy person and don’t have much time to actively trade stocks, then large-cap dividend stocks could provide a convenient way to generate some passive income.
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