Ten Donald Trump Stocks Worth Considering

Donald Trump again bragged on Twitter recently about his financial disclosures, so we decided to take a closer look at the stocks he owns.

He has a very diversified portfolio of mostly blue chip stocks that pay dividends. And we believe some of his holdings, in particular, are very attractive because of their big dividends and significant long-term price appreciation potential. Without further ado, here is the list of ten Donald Trump stocks that we believe are worth considering. 

10. Wells Fargo (WFC)
As of the report filing date, Trump reported to own somewhere between $100,001 and $250,000 of Wells Fargo in his “Deutsche Asset & Wealth Management A/C 1” brokerage account. We believe this is a good stock to own for a variety of reasons. Specifically, we like Wells Fargo because it has a big dividend yield (over 3%), a diversified business model, and the potential for significant price appreciation. You can read our full write-up on Wells Fargo here.

9. Gilead (GILD)
Trump is reported to own $250,001 - $500,000 of Gilead in his Oppenheimer brokerage account, and another $100,001 - $250,000 in his Deutsche Asset & Wealth Management brokerage account. We believe this is a smart position within his diversified portfolio because the narrative has become overly negative following Gilead’s first quarter earnings miss, especially considering the company’s ability to defend its big profit margins, its strong cash flows, and its discounted price. You can read our full write-up on Gilead here.

8. Bank of America (BAC)
Trump owns lots of Bank of America stock.  He has between $100,001 - $250,000 in his Deutsche Asset & Wealth Management account one, and another $500,001 - $1,000,000 in his Deutsche Asset & Wealth Management account two. We think Bank of America is a fine company, however we much prefer the preferred stock over the common. Specifically, we like the Preferred Series EE (BAC-A) which was issued last month and offers an attractive yield of nearly 6%. We believe the shares are less likely to get called at the earliest call date in April of 2021 because the company’s weighted average cost of capital (5.85%) is already almost as high as the 6% coupon on the preferred shares. This means if you like low risk and higher yield, you’ll likely continue to receive these dividend payments many years into the future. Again, we much prefer the preferred stock over the common shares, and you can read our full Bank of America write-up here.

7. Verizon (VZ)
Trump owns between $500,001 and $1,000,000 of Verizon stock in his Oppenheimer account, and between $1,001 - $15,000 in his Barclay’s brokerage account. Verizon is a classic, big dividend, blue chip stock which is consistent with many of Trump’s other holdings. This one is lower on the risk (volatility) scale, and higher on the dividend yield side (it pays a 4.5% dividend yield). Overall, we believe Verizon is a decent company, but we recommend caution and awareness before investing considering it’s already beating the market by more than 5% this year, and it is looking to take on new and bigger risks in order to keep feeding its big dividend payments. You can read more about how we view Verizon in this report.

6. International Business Machines (IBM)
The filing shows Trump owns between $500,001 and $1,000,000 of IBM in his Oppenheimer account and $100,001 and $250,000 in his Deutsche Asset & Wealth Management account. IBM is a classic, old-school, big dividend (3.7%), blue chip company (it’s nickname is even “Big Blue”), and its valuation remains very attractive even after its +10% rally so far this year. The stock has severely lagged the market over the last few years as investors were unhappy with its cloud strategy and its legacy businesses. However, IBM is a cash generation machine, and we like the stock. Our most recent free IBM report is from late last year, but the basic thesis continues to hold true today, and you can read the report here.

The Top 5 Donald Trump stocks worth considering are reserved for Blue Harbinger members only. You can access our detailed reports for each of these stocks in this week's Blue Harbinger Weekly. If you are not currently a member, consider a subscription.

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