4-Star Stocks Poised to Pop: Federated Investors

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, asset manager Federated Investors (NYS: FII) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Federated's business and see what CAPS investors are saying about the stock right now.

Federated facts

Headquarters (Founded)

Pittsburgh (1955)

Market Cap

$1.8 billion

Industry

Asset management

Trailing-12-Month Revenue

$895.1 million

Management

CEO John Donahue
CFO Thomas Donahue

Return on Equity (Average, Past 3 Years)

36.5%

Cash/Debt

$322.3 million / $318.8 million

Dividend Yield

5.4%

Competitors

BlackRock
Dreyfus Corp.
Pacific Investment Management

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 312 members who have rated Federated believe the stock will outperform the S&P 500 going forward.

Late last month, one of those bulls, blesto, tapped Federated as a particularly timely income opportunity:

The outcome of near future regulation changes affecting money markets may or may not put a damper on their business. Until that is fully resolved I'll just collect the better than 5% [dividend yield]. Even with all the twists and turns of the market, this company has steadily increased the dividend since their inception.

Of course, despite its four-star rating, Federated may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter serviceshave recommended buying shares of Federated Investors and BlackRock. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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