Yahoo Finance 11 Stocks That Donald Trump Loves
Now you can invest like Trump.
It may not detail a fortune greater than $10 billion, as Republican presidential contender Donald Trump crowed earlier this month, but Trump's financial disclosure forms made public on Wednesday are a treasure trove of detail about how the author of "The Art of the Deal" invests his own fortune.
The 92-page disclosure shows that Trump has assets of at least $1.4 billion, including at least $70 million in stocks. Not surprisingly, The Donald's favorites are large caps, and many pay strong dividends to feed his growing empire. And while Trump's holdings are spread across many sectors, there are 11 stocks that stand above the rest, as Trump trusts them enough to invest at least $500,000 in each.
Here's a look at the 11 stocks that Donald Trump loves the most.
Apple (AAPL)
2015 performance: 13.4 percent
Dividend yield: 1.7 percent
Trump loves bragging about his buildings, his golf courses, his business deals -- they're always the biggest and the best around. So it's no surprise that Trump favors Apple, the brash tech giant that has been wowing investors and consumers for years with groundbreaking products such as the iPhone and the iPad. Even splashy recent efforts, such as the Apple Watch, are heavy on glamour and excitement (even though that product hasn't gotten the best reviews). Apple stock has given Trump a dividend return of $15,000 to $50,000 in the reporting period.
Bristol-Myers Squibb (BMY)
2015 performance: 17.5 percent
Dividend yield: 2.1 percent
Bristol-Myers Squibb is one of the giants in the pharmaceutical sector, with a market capitalization of $115 billion. And happily for Trump, BMY stock has been on a steady uptrend because the company has some promising drugs in its pipeline, including infectious disease, cardiovascular and oncology treatments. Health care has long been a strong segment for investors, so it's no surprise that Trump is putting his own money in. BMY stock has paid Trump as much as $50,000 in dividends.
AT&T (T)
2015 performance: 2 percent
Dividend yield: 5.5 percent
AT&T isn't having the best of years -- a 2 percent increase is nothing to write home about, but at least it's not a loss. But T stock is making big news this week because the chairman of the Federal Communications Commission signed off on AT&T's merger with DirecTV (DTV). While the merger still needs to be voted on by the commission, the deal would allow AT&T to offer bundled mobile phone, fixed line, pay TV and Internet service to customers. That could give T stock the boost it needs to shake out of the doldrums -- and that would make The Donald happy. Trump earned $15,000 to $50,000 in dividends during the reporting period from his holding of AT&T.
Kinder Morgan (KMI)
2015 performance: -16.4 percent
Dividend yield: 5.5 percent
Kinder Morgan stock is the one equity in this list that Trump didn't list as paying him a dividend, which is somewhat surprising considering that KMI is paying an attractive 5.2 percent yield. Instead, the financial disclosure shows that Trump earned between $100,000 and $1 million for a capital gain from KMI, the nation's fourth-largest energy company. With a market capitalization of $76 billion, Kinder Morgan is one of the strongest ways to play energy and crude oil -- particularly for investors who are bullish on crude oil hitting a bottom. And picking up that dividend isn't a bad bet, either.
Verizon Communications (VZ)
2015 performance: -0.7 percent
Dividend yield: 4.7 percent
There's nothing wrong with playing two sides of the coin, particularly when it comes to investing. As he does with AT&T, Trump holds at least $500,000 in Verizon stock -- and he also was rewarded with a similar dividend, between $15,000 and $50,000. Verizon is particularly interesting because of its recent purchase of AOL, which allows Verizon to increase its digital content business. And VZ is one of the more aggressive telecommunications companies in terms of offering customers a variety of bundles to stem the tide of cable-cutting that is sweeping the industry.
Energy Transfer Partners (ETP)
2015 performance: -24.1 percent
Dividend yield: 8.2 percent
Some stocks are all about the dividend -- and when you're collecting a frothy yield of 8.2 percent, it's a little easier to forgive Energy Transfer Partners stock for losing more than 20 percent of its value so far this year. But all that may be ready to change; 10 of 14 analysts who follow ETP stock rate it a "buy" or "strong buy," with a mean price target of $66.42, more than a 30 percent increase over its current price. If analysts are right, Trump could be well-rewarded for holding this dividend utility through its down cycle. And you know how much Trump hates losers.
Altria Group (ALTR)
2015 performance: 33.8 percent
Dividend yield: 1.2 percent
Trump more than likely made a big profit last month when Intel (INTC), the world's largest chipmaker, agreed to purchase Altria for $16.7 billion, paying a healthy premium of $54 per share. The deal appears to be a strong marriage of Intel's dominance and Altria's greater growth prospects and grasp on the mobile market. The deal also continued a run of consolidations in the semiconductor industry, as Avago Technologies (AVGO) recently agreed to buy Broadcom Corp. (BRCM) for $37 billion.
International Business Machines (IBM)
2015 performance: 0.7 percent
Dividend yield: 3.2 percent
Sure, IBM is having a bad week. The tech giant lost nearly 6 percent after reporting quarterly sales of $20.8 billion, which was below the $20.95 billion expected by Wall Street, marking the 13th consecutive quarter of revenue declines for IBM. And IBM lags behind the rest of the computing industry in terms of hot technologies, such as mobile applications and cloud computing. But IBM still has plenty going for it, such as a dirt-cheap, price-to-earnings ratio of less than 10 and a dividend yield of 3.2 percent. That's plenty of reason for Trump to continue to hold this stock.
ConocoPhillips (COP)
2015 performance: -19 percent
Dividend yield: 5.3 percent
Trump could very well be grinding his teeth over the performance of ConocoPhillips stock. Year to date, COP stock is down nearly 20 percent, wounded by continued weakness in crude oil prices that has made offshore drilling less profitable. ConocoPhillips recently announced that it would reduce its deepwater spending in the Gulf of Mexico as it tries to regain its footing. In the meantime, The Donald is left to settle for a nice price-to-earnings ratio of less than 14 and a great dividend yield of 5.3 percent.
JP Morgan Chase & Co. (JPM)
2015 performance: 12 percent
Dividend yield: 2.5 percent
JP Morgan Chase could correctly be called the anti-Trump stock. It's doing well in 2015 because it's done a fine job being a solid, vanilla company that's flying below the radar. Revenues have somewhat slipped, but JPM stock has managed to beat Wall Street estimates in the last two quarters. That kind of performance, coupled with the slow rebound of the banking industry and JP Morgan's success in cutting costs, has made JPM stock a quiet winner.
Caterpillar (CAT)
2015 performance: -12.9 percent
Dividend yield: 3.9 percent
Caterpillar stock was having a horrendous year even before this week, when filings showed that retail sales for the company fell 14 percent in June. The mining and equipment company has been suffering through the downturn in energy prices, but is still maintaining a strong dividend yield of nearly 4 percent, as well as a relatively good P/E ratio of less than 13. That may keep shareholders like Trump happy.
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