International Business Machines Corp. (NYSE:IBM), General Electric Company (NYSE:GE) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) continue to offer high-quality yield plays according to legendary investor Brian Rogers in an interview on CNBC with Kayla Tausche. These Three companies are currently offering dividend yield at the 3% range making them highly attractive for investment according to Mr. Rogers.
The investor also pointed out laggard turnarounds in the market such as Newmont Mining Corp (NYSE:NEM) which have not performed well in the market, but with underlying great value going forward. Mr. Rogers said the best way to play safe in the equity market is combining high quality yield plays with laggard turnarounds for quality returns.
“I look for high-quality yield plays and turnarounds as two places to look in the equity markets,” said Mr. Rogers.
Mr. Rogers remains bullish on International Business Machines Corp. (NYSE:IBM) on the fact that its stock is extremely cheap while also offering high-dividend yields with a great buyback history. The legendary investor also pointed out that International Business Machines Corp. (NYSE:IBM)’s CEO is doing great work in turning around the fortunes of the company. Wells Fargo is another stock that the legendary investor remains highly optimistic on, especially on its ability to control levels of expenses in the financial sector.
“The one thing I don’t worry about Wells Fargo in the long term is in the category of expense control because they will control expenses over the long term, and they are great in that regard so I don’t worry about that,” said Mr. Rogers.
Many of the players in the financial sector continue to show low levels of growth in the loan sector of which Wells Fargo is also struggling. The financials are currently growing at the rate of the economy something that is of a concern to many investors.
Big financial companies led by the likes JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C) and Wells Fargo & Co (NYSE:WFC) have in the recent been under immense pressure to pay fines with regards to allegations of malpractices carried out during the economic Crisis. Mr. Rogers said the fines should have been directed to shareholders as a way of increasing value for their investments.