Why Compass Diversified Is Poised to Keep Poppin'

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, public investment firm Compass Diversified Holdings has earned a coveted five-star ranking.

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

Compass facts

Headquarters (Founded)

Westport, Conn. (2005)

Market Cap

$840.9 million

Industry

Asset management

Trailing-12-Month Revenue

$931.0 million

Management

CEO Alan Offenberg (since 2011)
CFO James Bottiglieri (since 2005)

(4.5%)

Cash / Debt

$16.5 million / $276.3 million

Dividend Yield

8.2%


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

On CAPS, 98% of the 319 members who have rated Compass believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star arisktaker, succinctly summed up the Compass bull case for our community:

Holding company. Controlling interest in a number a mostly private small to mid-size companies with strong positions in their market segments. Should do very well as the economy improved with little downside risk. Strong insider buying in the last year with no insider sales. As of 5/28/2013 it is paying a 8.27% dividend. It pays 36 cents quarterly. [C]urrently only 48.3 million shares outstanding and short interest is less than 1%.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Compass may not be your top choice. If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

The article Why Compass Diversified Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 Motley Fool has a disclosure policy.

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Originally published