Updated on August 17th, 2026 by Nikolaos Sismanis
Kevin O’Leary can be seen on CNBC as well as the television show Shark Tank.
Investors who have seen him on TV have likely heard him discuss his investment philosophy.
Mr. Wonderful looks for stocks that exhibit three main characteristics:
- First, they must be quality companies with strong financial performance and solid balance sheets.
- Second, he believes a portfolio should be diversified across different market sectors.
- Third, and perhaps most important, he demands income; he insists the stocks he invests in pay dividends to shareholders.
O’Leary’s O’Shares Investment Advisors puts these characteristics into practice with their O’Shares U.S. Quality Dividend ETF (OUSA).
You can download the complete list of all of O’Shares U.S. Quality Dividend ETF stock holdings by clicking the link below:
OUSA owns stocks that display a mix of all three qualities. They are market leaders with strong profits, diversified business models, and they pay dividends to shareholders.
The list of OUSA portfolio holdings is an interesting source of quality dividend growth stocks.
This article analyzes the fund’s largest holdings in detail.
Table of Contents
The top 10 holdings from the O’Shares U.S. Quality Dividend ETF are listed below based on their portfolio weights as of August 14th, 2026, from the smallest weight to the largest.
- No. 10: McDonald’s Corporation (MCD)
- No. 9: Merck & Company (MRK)
- No. 8: Home Depot (HD)
- No. 7: Cisco Systems (CSCO)
- No. 6: Mastercard Inc. (MA)
- No. 5: Microsoft Corporation (MSFT)
- No. 4: Visa Inc. (V)
- No. 3: Apple Inc. (AAPL)
- No. 2: Alphabet Inc. (GOOGL)
- No. 1: Johnson & Johnson (JNJ)
- Final Thoughts
No. 10: McDonald’s Corporation (MCD)
Percentage of OUSA Portfolio: 3.19%
Dividend Yield: 2.7%
McDonald’s Corporation is the world’s largest restaurant chain, with more than 45,000 locations across roughly 119 countries.
About 95% of its restaurants are franchised or licensed, giving the company an asset-light royalty and rent stream while local operators supply most of the capital needed to expand the system.
That model produced more than $139 billion of systemwide sales last year.
McDonald’s reported second-quarter results on August 4th, 2026.
Global comparable sales increased 1.3%, with positive growth in all three geographic segments, while systemwide sales rose 5% to $37 billion.
Consolidated revenue increased 4%, and adjusted earnings-per-share rose 6% to $3.38.
Loyalty remains an important growth engine, as sales to loyalty members exceeded $40 billion over the trailing 12 months, while 90-day active users increased 13% to nearly 220 million.
Management also appointed veteran executive Skye Anderson as President of McDonald’s USA, signaling a sharper focus on execution in its largest market.
The broader Accelerating the Arches plan continues to emphasize restaurant development, digital ordering, loyalty, delivery, and compelling value.
McDonald’s has raised its dividend for 49 consecutive years, leaving it just one annual increase away from Dividend King status.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on MCD.
No. 9: Merck & Company (MRK)
Percentage of OUSA Portfolio: 3.23%
Dividend Yield: 2.5%
Merck & Company is one of the world’s largest healthcare businesses.
It sells prescription medicines, vaccines, biologic therapies, and animal-health products, with Keytruda remaining its most important product.
The central investment issue is Merck’s effort to build additional growth drivers before Keytruda’s core U.S. patent protection begins to expire later this decade.
Merck reported second-quarter results on August 4th, 2026.
Worldwide sales rose 5% to $16.6 billion.
The company recorded a non-GAAP loss of $0.13 per share, largely because of a $5.7 billion research-and-development charge tied to the acquisition of Terns Pharmaceuticals.
Keytruda and its injectable QLEX formulation generated $8.4 billion of sales, up 5%, including $463 million from QLEX. Winrevair sales surged 75% to $588 million, while Animal Health revenue increased 8% to $1.8 billion.
The Terns purchase added the investigational leukemia therapy TERN-701, while the earlier Cidara transaction expanded Merck’s respiratory pipeline.
These deals, together with the rapid uptake of QLEX and Winrevair, are intended to make the portfolio less dependent on conventional Keytruda.
Merck raised its quarterly dividend 4.9% to $0.85 in late 2025 and has now increased the payout for 15 consecutive years.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on MRK.
No. 8: Home Depot (HD)
Percentage of OUSA Portfolio: 3.77%
Dividend Yield: 2.8%
Home Depot is the world’s largest home-improvement retailer, operating more than 2,300 stores in the United States, Canada, and Mexico.
The company generates about $165 billion in annual revenue and benefits from its scale, trusted brand, broad product assortment, and relationships with both do-it-yourself customers and professional contractors.
Home Depot reported first-quarter results on May 19th, 2026.
Sales increased 4.8% to $41.8 billion, while comparable sales rose 0.6%.
Adjusted earnings-per-share declined 3.7% to $3.43 as a still-soft housing market and higher costs offset revenue growth.
The average ticket increased 2.3%, but customer transactions declined 0.9%.
Management reaffirmed its 2026 outlook for total sales growth of 2.5% to 4.5% and diluted earnings-per-share growth of 0% to 4%.
Home Depot is also expanding further into the professional market.
Its SRS Distribution platform absorbed GMS, creating a network of more than 1,200 locations, and subsequently acquired HVAC distributor Mingledorff’s.
Management estimates these moves have expanded the company’s addressable market to approximately $1.2 trillion.
Home Depot raised its quarterly dividend 1.3% to $2.33 in February 2026, extending its dividend-growth streak to 17 years despite the uneven housing backdrop.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on HD.
No. 7: Cisco Systems (CSCO)
Percentage of OUSA Portfolio: 3.95%
Dividend Yield: 1.5%
Cisco Systems is a global leader in networking equipment and also sells security, observability, collaboration, and data-center products.
Its installed base and deeply embedded customer relationships support a growing stream of recurring software and services revenue, while demand for the networking infrastructure behind artificial intelligence has become a major new growth driver.
Cisco reported fiscal fourth-quarter results on August 12th, 2026.
Revenue increased 18% to $17.25 billion, and adjusted earnings-per-share rose to $1.22.
Product revenue grew 24%, led by a 28% increase in Networking.
Cisco received $4.0 billion of AI-infrastructure orders from hyperscale customers during the quarter, bringing the fiscal-year total to $9.3 billion. Full-year revenue increased 12% to $63.3 billion.
For fiscal 2027, management expects revenue of $72.2 billion to $73.4 billion and adjusted earnings-per-share of $5.05 to $5.11.
This outlook reflects strong AI and campus-networking demand, though a more hardware-heavy mix and component costs are pressuring gross margins.
Cisco raised its quarterly dividend 2.4% to $0.42 in February 2026, marking 16 consecutive years of dividend growth.
The payout adds a steady cash-return component to a business increasingly tied to AI infrastructure spending.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on CSCO.
No. 6: Mastercard Inc. (MA)
Percentage of OUSA Portfolio: 4.56%
Dividend Yield: 0.6%
Mastercard operates one of the world’s largest electronic-payment networks, connecting consumers, merchants, and roughly 22,000 financial institutions across more than 200 countries and territories.
More than 3.7 billion Mastercard-branded credit and debit cards are in use.
The network model requires relatively little capital and allows revenue to grow with payment volume and the continuing shift away from cash.
Mastercard reported second-quarter results on July 30th, 2026.
Revenue increased 14.8% to $9.3 billion, while adjusted earnings-per-share rose 21% to $5.04.
On a local-currency basis, gross dollar volume increased 8% to $2.88 trillion, cross-border volume grew 12%, and switched transactions rose 9% to 47.4 billion.
The adjusted operating margin expanded 120 basis points to 61.1%, and management lifted its 2026 earnings estimate.
The company is also extending its network into newer payment rails.
Its pending acquisition of BVNK is designed to connect stablecoin infrastructure with traditional fiat payments, complementing Mastercard’s growing virtual-card and embedded-payment capabilities.
Mastercard increased its quarterly dividend 14.5% to $0.87 in December 2025, extending its dividend-growth streak to 15 years.
Although the current yield is modest, rapid earnings growth, a low payout ratio, and regular buybacks have supported strong per-share compounding.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on MA.
No. 5: Microsoft Corporation (MSFT)
Percentage of OUSA Portfolio: 4.66%
Dividend Yield: 0.7%
Microsoft Corporation is one of the world’s largest technology companies.
Its businesses span Microsoft 365, Azure, Windows, security, LinkedIn, gaming, and enterprise software.
Recurring subscriptions and cloud services now generate a large share of revenue, while Microsoft’s scale and customer relationships have positioned it as a major platform for enterprise artificial intelligence.
Microsoft reported fiscal fourth-quarter results on July 29th, 2026.
Revenue increased 18% to $90.0 billion, while diluted earnings-per-share rose 32% to $4.81.
Microsoft Cloud revenue grew 27% to $59.3 billion, and Azure and other cloud-services revenue increased 43%.
Azure surpassed $100 billion in annual revenue for the first time, while Microsoft 365 Copilot exceeded 30 million paid seats.
For the full fiscal year, revenue rose 18% to $331.8 billion.
Commercial remaining performance obligations increased 84% to $678 billion, providing unusually strong visibility into future contracted revenue.
The company is investing heavily in data centers and AI capacity to meet this demand, which raises capital requirements but also reinforces the reach of its cloud ecosystem.
Microsoft returned $10.2 billion through dividends and repurchases during the quarter.
It has increased its dividend for 24 consecutive years, and the low payout ratio leaves ample room for continued growth alongside AI investment.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on MSFT.
No. 4: Visa Inc. (V)
Percentage of OUSA Portfolio: 4.94%
Dividend Yield: 0.7%
Visa operates the world’s largest electronic-payment network, facilitating transactions among consumers, merchants, financial institutions, and governments across more than 200 countries and territories.
Visa does not generally lend directly to cardholders, so its economics are driven mainly by payment volumes, processed transactions, cross-border activity, and an expanding portfolio of value-added services.
Visa reported fiscal third-quarter results on July 28th, 2026.
Revenue increased 14% to $11.6 billion, while adjusted net income rose 8% to $6.3 billion and adjusted earnings-per-share increased 11% to $3.32.
Payments volume grew 10%, cross-border volume increased 13%, and processed transactions rose 10% to 71.7 billion.
Management now expects net revenue growth at the low end of the low-teens range and earnings-per-share growth at the low end of the mid-teens range for fiscal 2026.
Beyond the core network, Visa is building value-added services around fraud prevention, tokenization, stablecoin settlement, and agentic commerce.
Its new AI Financial Assistant is intended to help banks deliver personalized financial insights inside their own apps.
Visa raised its annualized dividend 13.6% to $2.68 in late 2025, extending its dividend-growth streak to 16 years.
The yield remains low, but the payout has grown rapidly alongside earnings and substantial share repurchases.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on V.
No. 3: Apple Inc. (AAPL)
Percentage of OUSA Portfolio: 5.15%
Dividend Yield: 0.4%
Apple designs and sells the iPhone, Mac, iPad, Apple Watch, and other devices, supported by a tightly integrated software and services ecosystem.
The installed base creates high customer retention and recurring revenue from the App Store, iCloud, Apple Music, payments, warranties, and subscriptions. Services also carry higher margins than most hardware products.
Apple reported fiscal third-quarter results on July 30th, 2026. Revenue increased 16% to $109.4 billion, helped by continued strength in the iPhone and Services businesses across every geographic region.
Earnings-per-share rose 29% to $2.02 and exceeded the analyst consensus by $0.13.
The company set third-quarter records for earnings-per-share and operating cash flow, continuing a long run of results that have generally exceeded expectations.
Apple continues to roll out Apple Intelligence and broad software updates across its product platforms.
The key strategic question is whether these features can deepen customer engagement and support future device upgrades while Services keeps expanding the recurring portion of the business.
Apple raised its quarterly dividend 4% to $0.27 in April 2026 and authorized another $100 billion of share repurchases.
The company has increased its dividend for 14 consecutive years.
Its yield is small, but the modest payout ratio and enormous cash generation provide considerable coverage.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on AAPL.
No. 2: Alphabet Inc. (GOOGL)
Percentage of OUSA Portfolio: 5.19%
Dividend Yield: 0.3%
Alphabet is the parent of Google Search, YouTube, Android, Chrome, Gmail, Maps, Google Cloud, and several earlier-stage businesses.
Advertising remains the largest source of profit, but Cloud has become a much more important growth engine.
The company’s enormous reach, data, engineering talent, and balance sheet give it multiple ways to invest in artificial intelligence.
Alphabet reported second-quarter results on July 22nd, 2026.
Revenue increased 24.2% to $119.8 billion, while earnings-per-share rose to $9.11, although investment gains accounted for a meaningful portion of the increase.
Google Search revenue grew 16.8% to $63.3 billion, YouTube advertising increased 12.9% to $11.1 billion, and Google Cloud revenue surged nearly 82% to $24.8 billion.
The operating margin expanded 200 basis points to 34%.
The completed Wiz acquisition also broadens Google Cloud’s security platform across multicloud and AI environments.
Management raised expected 2026 capital spending to $195 billion to $205 billion as it accelerates investment in computing capacity and AI infrastructure.
This spending weighed on quarterly free cash flow, making the returns on those projects an important point to monitor.
Alphabet began paying a dividend only recently, but its April 2026 increase of 4.8% to $0.22 per quarter marked a third consecutive year of growth.
The current yield is low, yet the payout consumes only a small portion of earnings.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on GOOGL.
No. 1: Johnson & Johnson (JNJ)
Percentage of OUSA Portfolio: 5.58%
Dividend Yield: 2.1%
Johnson & Johnson is a diversified healthcare company focused on Innovative Medicine and MedTech.
Founded in 1886, it has leading positions in oncology, immunology, cardiovascular care, surgery, and orthopaedics.
These businesses provide multiple growth sources, although patent competition and product cycles can create uneven results within individual franchises.
Johnson & Johnson reported second-quarter results on July 15th, 2026.
Revenue increased 6.6% to $25.3 billion, while adjusted earnings-per-share rose 4.7% to $2.90.
Innovative Medicine sales grew 7.8% as reported, led by 17.3% growth in Oncology.
MedTech revenue increased 4.5%, with strength in cardiovascular products and a return to growth in Orthopaedics.
Management raised its 2026 reported-revenue midpoint to $101.1 billion and adjusted earnings-per-share guidance to $11.60 to $11.75.
The planned separation of the orthopaedics business into an independent DePuy Synthes company should leave Johnson & Johnson more focused while giving the slower-growing unit greater strategic flexibility.
For dividend investors, the company’s record is difficult to match. On April 16th, 2026, it raised the quarterly payout by 3.1% to $1.34, marking its 64th consecutive year of dividend increases.
That history fits well with OUSA’s emphasis on quality and dividend growth.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on JNJ.
Final Thoughts
Kevin O’Leary’s public persona may be built around direct opinions and strict financial discipline, but OUSA shows how those ideas translate into a portfolio.
The fund emphasizes quality, low volatility, and dividend growth, and its largest positions are profitable market leaders with durable franchises and substantial cash generation.
The ranking is based on OUSA’s portfolio weights, not our expected-return estimates, so view it as a snapshot of the fund’s conviction rather than a stand-alone buy list.
Some holdings, such as Johnson & Johnson and McDonald’s, offer exceptional dividend histories, while the technology and payment companies contribute faster earnings and dividend growth from lower starting yields.
That blend aligns well with O’Leary’s preference for businesses that can compound capital while still returning cash to shareholders. However, valuation still matters. You can use the Sure Analysis Research Database to compare these high-quality businesses on expected total return before considering them individually.