‘I’ll never put my money in a bank stock again’: Kevin O’Leary says the US government has ‘nationalised’ the US banking system. here’s what it’s like instead

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‘I’ll never put my money in a bank stock again’: Kevin O’Leary says the US government has ‘nationalised’ the US banking system. here’s what it’s like instead

The failures of Silicon Valley Bank and Signature Bank spooked depositors and investors. While regulators moved quickly to ensure deposits were safe, Shark Tank star Kevin O’Leary was not impressed.

“What effectively happened over the weekend is that he nationalized the American banking system,” he told CNN, referring to US President Joe Biden. “It is no longer a risk. It is no longer private in any sense. It is now supported by the government, ultimately the taxpayer.

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According to O’Leary, this should change the way investors view the sector.

“What’s really happening is when the president steps out in a matter of moments, he’s basically saying, ‘Look, I can’t take this risk anymore, I’m going to nationalize the whole thing’,” O’Brien said. Leary said, as banks become regulated as they become more concentrated, they will be “much less profitable.”

And that’s not good for shareholders.

“There’s no such thing as a free lunch, and it’s going to be very costly for shareholders of banks in the long run. I will never put my money in again.

So where does Mr. Wonderful put his money?

dividend stock

O’Leary believes in investing in dividend stocks.

“When I started doing some research I discovered an interesting fact that changed my investing philosophy forever,” he said in a Forbes interview. “Over the past 40 years, 71% of market returns have come from dividends, not capital appreciation.”

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“So one rule for me is I will never own stuff that doesn’t pay dividends. Ever.”

If you similar views, here’s a look at the top two holdings in O’Leary’s flagship ETF — the ALPS O’Shares US Quality Dividend ETF (OUSA).


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

The company announced a 10% increase in its quarterly dividend to 68 cents per in September 2022. Over the past five years, its quarterly payouts have grown 62%.

At the current price, Microsoft offers an annual dividend yield of just over 1%.

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The return may not sound like much, but Microsoft is currently the largest holding in O’Leary’s OUSA with a weighting of 5.08%.

2022 wasn’t a good one for tech stocks, and Microsoft was caught in the selloff as well. Shares have declined 8% over the last 12 months.

But the business is on the right track. In the December quarter, revenue rose 2% from a year earlier to $52.7 billion. On a constant currency basis, revenue growth was a impressive 7%.

Looking at the pullback in its price, Microsoft could give opposite investor something to think about.

home depot

Home Depot (HD) is the second largest holding in OUSA, accounting for 4.81% of the fund’s weight.

The home improvement retail giant has about 2,300 stores, each averaging about 105,000 square feet of indoor retail space, which dwarfs many competitors.

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

And the company continued its momentum as the economy reopened.

In Home Depot’s fiscal 2022, sales are expected to increase 4.1% year over year, while earnings per improved 7.5%.

Last month, the company raised its quarterly dividend by 10% to $2.09 per share. At the current price, it yields 2.9%.

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This article provides information only and should not be taken as advice. It is provided without warranty of any kind.