Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Inter Parfums, Inc. (IPAR), KKR & Co. L.P. (KKR): High-Quality Companies Coming off Their 52-Week Highs

Here I chose three companies with high-quality fundamentals and a consistent history of returning value to shareholders. All three companies trade at least 14% off their 52-week highs and meet a variety of appealing criteria:
  1. Positive free cash flow (FCF) per share and operating income per share.
  2. Dividend coverage ratios of 170% or higher.
  3. No negative one-, three- of five-year dividend growth.
Let’s take a one-by-one look at the three names I chose.
KKR & Co. L.P. (NYSE:KKR)

One king of private equity off its highs

KKR & Co. L.P. (NYSE:KKR), mostly known as KKR & Co. L.P. (NYSE:KKR), is now 15.5% down from its 52-week high. The company represents a good long idea if you are interested into having an asset manager in your portfolio. Having much more capital than any of its peers ($7.1 billion), the company can take advantage of various profitable opportunities that are restricted for most asset managers. Besides, the company is growing its non-private-equity arm at an incredibly fast pace (assets under management in this arm went from $16 to $32 billion in just two years). Most importantly, the company is ready to keep distributing cash to its shareholders. With a high 5.77% cash dividend yield (up by 97% year over year), a dividend coverage ratio of 193% and trading at 8.8 times P/E, I think KKR & Co. L.P. (NYSE:KKR) is the best stock in the asset-management space.

Price does not reflect the huge opportunities ahead

Inter Parfums, Inc. (NASDAQ:IPAR), which is 14% off its 52-week highs, looks cheap taking into account the company’s opportunities ahead. Inter Parfums, Inc. (NASDAQ:IPAR) is a multi-brand perfume maker and marketer (Mont Blanc, Lanvin, Dupont, among others) with healthy top-line growth and a rock-solid balance sheet.
The company is growing sales both organically and through additional licensing opportunities. Besides, it has great potential for margin expansion. As I mentioned before, Inter Parfums, Inc. (NASDAQ:IPAR) offers strong balance sheet and earnings growing at full speed (first-quarter EPS doubled from last year). With net sales increasing by 29% year over year (yoy) to $214 million and trading at 23 times P/E, I think Inter Parfums, Inc. (NASDAQ:IPAR) is one stock to hold in your watch-list. On top of growth, the company has not forgotten about its shareholders. Inter Parfums, Inc. (NASDAQ:IPAR) is growing its 1.65% cash dividend yield at a 12.5% annual pace.

Driving FCF and dividend growth.

Marathon Petroleum Corp (NYSE:MPC), the oil refiner and marketer which was spun off from Marathon Oil Corporation (NYSE:MRO) in 2011, is 27% off its 52-week high.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.