Also in this playlist...
This transcript is automatically generated
-- -- Good stocks have been surging.
-- this year some -- the -- as much as 30% -- our next -- -- -- don't put your little portfolio on at night.
And consider stocks it's -- qualities but much lower valuations.
Decked out -- senior editors here with us right now who actually looks like he's been on -- died -- separate but that sit here and there.
Let's talk about these food stocks could look I don't even pull out McDonald's and to pull even catalogs they and then on eight hair.
Yet the General Mills the hormel amendment added the packaged food stocks from the supermarket there -- quantity and in some cases 30% just this year.
So investors want -- things from these companies they want stable earnings.
And they want dividends.
The problem is the higher the price goes below the dividend yield goes and what we find is that the dividend yield advantage for food stocks has -- there the average yield for food stocks is -- the same as the average dividend yield for those S&P 500 companies that paid dividends so you're saying.
-- just expense 10 PM when you look at earnings stability I mean I -- a nerd out with a big -- look at there's statistical measure of earnings stability and you find that you have food stocks.
How stable earnings.
But companies out there like IBM like Google like Exxon have how bad earnings over the past six years have been statistically just as stable as the earnings of those -- compass up.
You can really get.
A better deal right now if you look for your dividends and stability.
Elsewhere -- -- whatever it takes what's it didn't Justin Bieber -- in your article.
Well it's permanent analysts are called these stocks -- -- the affection for them being harassed right now I don't know if you're busy and clients including credit I wish I had not enough.
I Justin -- lovers in my house so I sort of I try to throw reference and to every story and I didn't get it into this OK okay because he.
We try not to talk about -- in my house panel that kind of -- -- -- -- -- -- I'm glad we can believe in my mansion -- you're just saying that he it's slick Hollywood -- these stocks are nineteen times earnings in the broad market is fourteen times earnings that's a gigantic premium and it hurts your forward returns up leaving these foodstuffs let's get right to your picks and.
-- -- a lot of problems that works I think you're being -- best.
Had a lot of it's out of a lot of bad publicity on national problems are little battery thing can give a -- that is business as usual when you bring out a new planes are always malfunctions are always complications these planes sell for two decades or Morse the sales cycle here is much much longer than the new cycle on the east from his problems.
-- recast closer to double over the next couple years a stock exchange.
-- travelers is you're next on.
-- the insurance industry is actually the portfolio earnings for these companies are down so they're doing -- -- -- thing are actually getting pretty strict I'm turning a profit.
-- -- -- -- That their behavior not enough economically rational way and margins are moving higher for the group.
Travelers a strong company with a good friend pretty conservative impressive.
Insurance to L-3 communications this didn't tell me look at the sequestration.
-- -- you know this company earns more than eight bucks a share -- -- they've -- -- what the impact a bit about 65 cents a share in earnings.
This is a company that -- free cash flow yield of more than 13% -- gives -- -- -- room to pay big -- -- -- -- -- the buy -- -- -- -- the one analyst described as a as a as a takeover in slow motion because -- -- -- really pretty too Black & Decker is on a plan homes right I'm gonna go -- some -- gathered that the biggest correlation with the stock is with hiring in the construction sector and I can't -- their -- Islamic -- right now but it has been one of the biggest contributors of the job growth we've had.
So bodes well for tools sales jolly doubters out there I do have a tool box -- nobody -- I'm not a doubt.
-- -- -- yeah even thicker on its pink -- at the petroleum before we go out.
Yeah I -- occidental I think accidental.
-- this is this is company that's under levered relative to the group and it's -- -- if they're pretty stable business of buying up these older wells and using technology to get more productivity out of themselves.
It's a cheap stock with a good dividend them.
You know you can get better earnings stability I believe mess up without paying this price -- -- I love it they're skinny -- that half as Smart funny thank you and we -- about just -- welcome back.
As far as -- -- I'm speech next.
Filter by section