TTE - Morgan Stanley shakes up its global dividend portfolio
2023-06-29 05:08:31 ET
Morgan Stanley is making some moves in its model for income-focused investors.
It is adding two new positions with Rio Tinto ( NYSE: RIO ) and Smith & Nephew ( SNN ), swapping out Amgen ( AMGN ) and the iShares MSCI Hong Kong ETF ( EWH ).
"We are adding a position in Rio Tinto for three reasons: 1) China’s high likelihood of announcing a stimulus should support commodity demand; 2) RIO has a best-in-class balance sheet and underappreciated earnings power; and 3) RIO trades at an attractive valuation, offering a current spot free-cash-flow yield of 9%," strategist Kevin Demers wrote in a note.
"We are adding a position in Smith & Nephew for three reasons: 1) self-help potential; 2) elective procedure volume recovery; and 3) attractive valuation," Demers said.
"EWH has high exposure to Chinese financials; we are replacing it with a materials & mining company with high exposure to China, which could benefit from any easing conducted by the Chinese government to help stimulate China’s economy, and ultimately from a rebound in global economic growth," he added.
Amgen is being removed as Morgan Stanley is no longer able to provide a rating on that particular stock (it did not say exactly why).
In addition to those moves, Morgan Stanley is increasing weights in TotalEnergies ( TTE ) and the WisdomTree Emerging Markets High Dividend ETF ( DEM ) and cutting the weight in Novartis ( NVS ).
The entire portfolio stands at:
Communication Services
- Verizon ( VZ )
Consumer Staples
- Diageo ( DEO )
- Coca-Cola ( KO )
- PepsiCo ( PEP )
- Procter & Gamble ( PG )
- Philip Morris ( PM )
- Unilever ( UL )
Energy
- TotalEnergies ( TTE )
Financials
Healthcare
- AbbVie ( ABBV )
- CVS Health ( CVS )
- J&J ( JNJ )
- Medtronic ( MDT )
- Merck ( MRK )
- Novartis ( NVS )
- Pfizer ( PFE )
- Smith & Nephew ( SNN )
Industrials
Info Tech
Materials
Real Estate
Utilities
Funds
For further details see:
Morgan Stanley shakes up its global dividend portfolio