Here I chose three companies with high-quality fundamentals and a consistent history of returning value to shareholders. All three companies trade at least 14% off their 52-week highs and meet a variety of appealing criteria:
Positive free cash flow (FCF) per share and operating income per share.
Dividend coverage ratios of 170% or higher.
No negative one-, three- of five-year dividend growth.
Let’s take a one-by-one look at the three names I chose.
One king of private equity off its highs
KKR & Co. L.P. (NYSE:KKR), mostly known as KKR & Co. L.P. (NYSE:KKR), is now 15.5% down from its 52-week high. The company represents a good long idea if you are interested into having an asset manager in your portfolio. Having much more capital than any of its peers ($7.1 billion), the company can take advantage of various profitable opportunities that are restricted for most asset managers. Besides, the company is growing its non-private-equity arm at an incredibly fast pace (assets under management in this arm went from $16 to $32 billion in just two years). Most importantly, the company is ready to keep distributing cash to its shareholders. With a high 5.77% cash dividend yield (up by 97% year over year), a dividend coverage ratio of 193% and trading at 8.8 times P/E, I think KKR & Co. L.P. (NYSE:KKR)is the best stock in the asset-management space.
Price does not reflect the huge opportunities ahead
Inter Parfums, Inc. (NASDAQ:IPAR), which is 14% off its 52-week highs, looks cheap taking into account the company’s opportunities ahead. Inter Parfums, Inc. (NASDAQ:IPAR) is a multi-brand perfume maker and marketer (Mont Blanc, Lanvin, Dupont, among others) with healthy top-line growth and a rock-solid balance sheet.
The company is growing sales both organically and through additional licensing opportunities. Besides, it has great potential for margin expansion. As I mentioned before, Inter Parfums, Inc. (NASDAQ:IPAR) offers strong balance sheet and earnings growing at full speed (first-quarter EPS doubled from last year). With net sales increasing by 29% year over year (yoy) to $214 million and trading at 23 times P/E, I think Inter Parfums, Inc. (NASDAQ:IPAR) is one stock to hold in your watch-list. On top of growth, the company has not forgotten about its shareholders. Inter Parfums, Inc. (NASDAQ:IPAR) is growing its 1.65% cash dividend yield at a 12.5% annual pace.
Driving FCF and dividend growth.
Marathon Petroleum Corp (NYSE:MPC), the oil refiner and marketer which was spun off from Marathon Oil Corporation (NYSE:MRO) in 2011, is 27% off its 52-week high.
The company mixes growth in free cash flow (FCF) with growing shareholder return.The company has a processing capacity of more than 1.5 million barrels per day (mmbd), supplies product to more than 5,000 independent retail outlets, almost 1,500 company-operated Speedway-branded stores and also operates more than 9,500 miles of pipelines.
With its low net debt value (the company has a $1.3 billion net cash position) and its strong FCF outlook (13% FCF yield), I think Marathon Petroleum Corp (NYSE:MPC) can continue to repurchase shares beyond the recent authorization ($2.5 billion). Paying a 2% cash dividend yield, growing its dividend at a 47% yoy pace and trading at 2013 7.3 times P/E, I think Marathon Petroleum Corp (NYSE:MPC) is a good proposition within its space.
Bottom line
For long term investors, a sell-off constitutes good news. During the sell-off is when you can find great value for a good price. I do not know whether the recent market sell-off is over or not (nobody does), but what I can say is that these are the best times to look for value. All the companies named above hold great value. Most importantly, they also transform the value being created into cash flow for shareholders (dividends and buybacks). It’s time to start looking.
Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Federico is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
It’s the revolution reshaping every industry on the planet.
From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.
Here’s why this is the prime moment to jump on the AI bandwagon:
Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.
Imagine every sector, from healthcare to finance, infused with superhuman intelligence.
We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.
This isn’t a maybe – it’s an inevitability.
Early investors will be the ones positioned to ride the wave of this technological tsunami.
Ground Floor Opportunity: Remember the early days of the internet?
Those who saw the potential of tech giants back then are sitting pretty today.
AI is at a similar inflection point.
We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)
The AI revolution is upon us, and savvy investors stand to make a fortune.
But with so many choices, how do you find the hidden gem – the company poised for explosive growth?
That’s where our expertise comes in.
We’ve got the answer, but there’s a twist…
Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.
That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!
Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.
This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.
It’s like having a race car on a go-kart track.
They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.
Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.
We want to make sure none of our valued readers miss out on this groundbreaking opportunity!
That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.
For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.
