It’s not only AI stocks that drew the Peach State representative’s interest in July.
After purchasing a variety of stocks in June, Rep. Marjorie Taylor Greene, a Republican from Georgia, was back at it again in July. The Peach State representative, who sits on the Oversight and Reform Committee and the Homeland Security Committee, added six more stocks to her portfolio, according to a recently submitted regulatory filing.
In addition to tech stocks Applied Materials (AMAT 6.74%), Corning (GLW 2.01%), and Dell (DELL 4.06%), Greene picked up shares of utility stock Duke Energy (DUK -0.95%), banking powerhouse JPMorgan Chase (JPM 1.83%), and logistics leader United Parcel Service (UPS 2.34%). Although the exact value of each transaction wasn’t reported, all six trades were valued between $1,001 and $15,000.
Consistent with her purchases in the first half of the year, Greene demonstrated a keen interest in stocks that had exposure to artificial intelligence (AI). On July 23, she increased her AI exposure by picking up shares of Applied Materials, Corning, and Dell. Applied Materials, for example, develops and manufactures systems that companies require to produce semiconductors, including those that are specifically designed for AI applications. This business represents the lion’s share of the company’s sales — about 74% of overall revenue in the second quarter 2024.
Like Applied Materials, Corning is a specialty materials company benefiting from the AI boom. Management credited the company’s unexpected strong second-quarter 2024 results to “the strong adoption of our new optical connectivity products for generative AI, which drove record sales in the Enterprise portion of our Optical Communications business.” From storage solutions to servers to laptops, Dell has a variety of products incorporating AI. Regarding its Q1 2025 performance, Jeff Clarke, Dell’s chief operating officer, stated, “Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”
We may not be certain why Greene chose electric and natural gas utility Duke Energy for her portfolio, but the likely answer is the company’s generous dividend, which currently represents an attractive forward dividend yield of 3.7%. Investors often choose utility stocks for their consistent — and secure — dividends, and Duke Energy is no different. The company has a long-standing commitment to rewarding investors, paying a quarterly dividend for the past 98 years. Over the past 10 years, the company has hiked its payout at a 2.8% compound annual growth rate (CAGR). Management has targeted a payout ratio of 60% to 70% of adjusted earnings per share.
Gaining exposure to a leading financials stock, Greene clicked the buy button on JPMorgan Chase. The largest commercial bank in the United States, JPMorgan Chase is a popular choice among leading institutional investors. Another stock to boost her passive income stream, JPMorgan Chase has a 2.3% forward dividend yield, and it has averaged a conservative payout ratio of 31% over the past 10 years — a period during which the company has achieved impressive growth writ large. From 2005 to 2023, JPMorgan Chase has increased its tangible book value at a 10% CAGR.
Lastly, Greene delivered UPS stock to her portfolio. The logistics stalwart has underperformed the market significantly over the past year, so it’s possible that Greene sensed the opportunity to grab a more secure, high-yield dividend stock on the cheap. Providing an enticing forward yield of 5.1%, UPS isn’t jeopardizing its financial health, as the company has averaged a low payout ratio of 66% over the past five years. It further illustrates its commitment to rewarding shareholders that management is targeting 2024 share repurchases of about $500 million.
Smart investors may recognize that monitoring politicians’ stock picks is a savvy strategy. But they’ll also tell you that hurrying to mimic them is far from wise. Instead — as always — perform your own due diligence.
With regards to Greene’s recent purchases, however, those with their eyes out for AI stocks would be smart to put Applied Materials, Corning, and Dell on their radars. But they’re not the same as semiconductor manufacturers (the typical stocks that dominate AI conversations) so further scrutiny is naturally warranted.
As to the other stocks that Greene selected — Duke Energy, JPMorgan Chase, and UPS — they’re all valid considerations as they’re all industry leaders that offer excellent opportunities to fortify your passive income.
