Appleseed's Top Picks Revealed
"She destroyed a lot of capital by under-investing in the business. And we are hoping that the new CEO, whoever that may be, will be able to galvanize the business. That said, the valuation is very inexpensive and while we wait there's still a 5% dividend," says Strauss.
The no-load $194 million fund focuses on companies with prudent and sustainable business models. It a full garners five stars from Morningstar (MORN) and is up 4% over the past 12 months, putting it in the top 20% of Morningstar's mid-cap value category. Over the past 5 years, the fund has returned an average of nearly 6.5% annually, outpacing 99% of its Morningstar rivals.Strauss is also a fan of food packaging company Sealed Air (SEE), which is trading at a discount in his view in the wake of the company's Diversey acquisition last fall. "It's trading with a double-digit cash flow yield and a nice dividend yield, and, most importantly, we think there's a lot of upside to business," says Strauss. Strauss also sees a housing comeback on the horizon and is playing it through Weyerhaeuser (WY), which is now a REIT yielding 3%. "For a long time we were very bearish on housing, but we think there is a fair amount of pent-up demand building. It converted to a REIT a few years ago, so there's a nice dividend and as this business grows, it should treat its shareholders very well," says Strauss. Finally, Strauss is bullish on insurance broker Willis Group (WSH), which he says will benefit from increasing insurance premiums. "Right now insurance companies aren't making much money because their investment portfolios have very low yields. They need to raise prices in order to keep their ROEs in the high single, low double digit range and Willis will be a beneficiary of that trend," says Strauss.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV