Invesco's Top 7 Stock Holdings

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Includes: AAPL, CMCSA, GOOG, INTC, MSFT, ORCL, RAI
by: Mike Young

Invesco Ltd. is an independent investment management company headquartered in Atlanta, Georgia. The firm has branch offices in 20 countries and operates numerous brands, including Invesco, Trimark, Invesco Perpetual, Atlantic Trust, WL Ross and Powershares. It is one of the leading investment firms with over $653B in total assets under management (as of June 2011).

Below are the top seven holdings for Invesco Ltd. as of September 30, 2011:

Apple Inc. (OTC:APPL): Not surprisingly, Apple is Invesco’s top holding with almost 13M shares. The company is one of the most talked about stocks on Wall Street, considering the success of its breakthrough products (iPhone 4S, iPad 2,etc.) the passing of its founder and former CEO, Steve Jobs, and the enormous cash pile it holds on its balance sheet ($25.95B). The company has a P/E of 14.22, and a forward P/E of 10.12, based on analysts’ estimates. One analyst even argues that Apple is the most undervalued large-cap company in America. Invesco LTD owns 1.4% of the total outstanding shares.

Microsoft Corporation (NASDAQ:MSFT): Microsoft develops, licenses, and supports a range of software products and services for various computing devices worldwide. It is Invesco’s second largest holding at 2.2%. Microsoft is also one of Goodhaven Capital’s top five holdings, and is held by several prominent hedge fund managers and value investors. The company generates $71.12B in revenue and has a P/E of 9.34. It also holds $55.94B in cash on its balance sheet, or $6.65/share. It sports a 2.7% dividend yield with a payout ratio of 23%.

Reynolds American Inc. (NYSE:RAI): Reynolds American, through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. Invesco LTD owns over 65M shares, or 11.22% of the total outstanding shares, making Reynolds the third largest holding in Invesco’s portfolio. Reynolds American has a market cap of 23.63B and a P/E of 17.86. It has over $2B in cash on its balance sheet, and offers a dividend yield of 5.3% with a payout ratio of 91%.

Google Inc. (NASDAQ:GOOG): Google maintains an index of websites and other online content for users, advertisers, and Google network members and other content providers. In addition to search, the company is involved in a variety of high-growth and emerging areas of business, which makes it difficult for analysts to forecast its future cash flows for DCF valuations. However, Google’s dominance in search and internet advertising gives Google a defensible competitive advantage. It has a $203.21B market cap and a P/E of 21.39. Invesco LTD owns over 3.8M shares of Google, making Google its fourth largest holding.

Oracle Corporation (NASDAQ:ORCL): Oracle, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. Invesco LTD still owns 59.9M shares of Oracle after selling a significant amount (~5M shares) during the last filing period, making it Invesco’s fifth largest holding. Oracle has a market cap of $159.86B and a P/E ratio of 18.03. The company carries $31.66B in cash vs. $14.79B in total debt on its balance sheet. It also provides investors with a 0.80% dividend yield, with a low payout ratio of 12%.

Intel Corporation (NASDAQ:INTC): Intel engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Invesco LTD owns over 72M shares of Intel, making it the sixth largest holding in Invesco’s portfolio. Intel has a market cap of $127.35B and a P/E of 10.83. It holds over $15.2B in cash on its balance sheet compared to $7.27B in total debt. The company provides a 3.2% dividend yield with a 32% payout ratio.

Comcast Corporation (NASDAQ:CMCSA): Comcast provides entertainment, information, and communications products and services in the United States and internationally. Invesco LTD owns over 78M shares, or 3.73% of the total outstanding shares, making Comcast the seventh largest holding in Invesco’s portfolio. Comcast generates $50.52B in revenues, which has grown over 50% from the same quarter last year. It has a $61.80B market cap and a P/E of 16.32. The company also provides a 1.9% dividend yield with a payout out ratio of 30%. Comcast has $1.81B in cash on its balance sheet and a total debt/equity ratio of 65.2.

Disclosure: I am long AAPL.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.