This week's Blue Harbinger Weekly is a continuation of our free report titled Ten Donald Trump Stocks Worth Considering. Specifically, we provide detailed reports for each of the top five stocks. We believe each stock offers a particularly attractive dividend yield and significant price appreciation potential. Without further ado, here are the top 5 Donald Trump stocks worth considering...
5. American Express (AXP)
Trump owns between $100,001 and $250,000 of American Express in his Deutsche Asset & Wealth Management account. American Express common stock has underperformed the market over the last year, and (as contrarians) that’s part of the reason we like the stock and own shares within our Blue Harbinger Disciplined Growth strategy. Specifically, AXP is down because it lost an exclusivity deal with Costco last year, it lost an anti-trust case related to usage fees (discount fees) on its cards, and the company spent a lot of money on marketing efforts that were not as fruitful as hoped. HOWEVER, we believe American Express is a powerful brand name, with significant growth potential in its GNMS segment (which utilizes a business model more similar to Visa and MasterCard), and it has opportunities to benefit from significant secular growth in the years ahead. You can read more of our views on American Express here.
4. Johnson & Johnson (JNJ)
Trump owns between $100,001 and $250,000 of Johnson & Johnson in his Deutsche Asset & Wealth Management account. We own JNJ in both our Blue Harbinger Income Equity and Disciplined Growth strategies. We believe the company's diverse healthcare segments help protect it from market volatility, it gives us important exposure to the healthcare sector, and it offers an attractive 2.84% dividend yield. You can read more of our views on Johnson and Johnson here.
3. Procter & Gamble (PG)
Trump owns between $15,001 and $50,000 of Procter & Gamble in his Deutsche Asset & Wealth Management account. We own it in our Blue Harbinger Disciplined Growth and Income Equity strategies because of its low volatility, strong dividend yield (+3.3%), and continued price appreciation potential. The company has been focusing its portfolio of brands on only the most profitable, it has been managing costs assertively, and it has continued growth opportunities particularly in emerging markets. You can read more of our views on Procter & Gamble here.
2. Phillips 66 (PSX)
Trump owns between $50,001 and $100,000 of Phillips 66 in his JP Morgan account. We own Phillips 66 in our Income Equity strategy. We like PSX because we believe it is undervalued by the market. Specifically, we believe the market is not giving Phillips 66 enough credit for its expanding midstream and chemicals businesses which warrant higher valuations. We also believe Phillips 66 will benefit from a recover in oil prices. You can read more of our views on Phillips 66 here.
1. Caterpillar (CAT)
Caterpillar is one of Trump’s largest single stock holdings as he owns it in his Oppenheimer account ($500,001 - $1,000,000), in his Deutsche Asset & Wealth Management account ($500,001 - $1,000,000), and in his JP Morgan account ($250,001 - $500,000). We also own Caterpillar in our Income Equity strategy. It’s not surprising Trump owns so much Caterpillar because it fits into a narrative he likes to tell about middle class jobs and hard-working Americans (you can read more about this here). We like Caterpillar because it’s cheap and we believe it’s going to appreciate in value tremendously in the coming years as the market cycle turns. Plus it pays a big 4.3% dividend yield. You can read more about our views on Caterpillar here.
*Note: Donald Trump's holdings can be viewed here.