4 Jefferies Large Cap Franchise Picks That Also Pay Solid Dividends

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This company has ticked higher since the deal with Baker Hughes fell through due to regulators’ concerns, but it is still down almost 45% from highs printed two years ago. Jefferies recently added the company to the Franchise Picks portfolio. Halliburton Co. (NYSE: HAL) is one of the world’s largest providers of products and services to the energy industry.

The company serves the upstream oil and gas industry throughout the life cycle of the reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

The oil field giant announced last year a $1 billion investment to develop huge potential oil fields in Ecuador and has entered into a long-time deal with Petroamazonas, an Ecuador-based company involved in the exploration and development of the country’s oil reserves. With oil looking to stabilize in the $40 to $50 range, this top oil service company is a great stock to buy on sale, as the oil recovery has shown some legs.

Top Wall Street analysts see the end of the Baker Hughes deal as removing uncertainty on the company and also think that the company still has acquisition possibilities that could help expand the business footprint.

Halliburton investors receive a 1.56% dividend. The $56 Jefferies price target is higher than the consensus target of $51.44 and Monday’s closing share price of $41.28.


This is one of the many top companies that restructured and is now based in Ireland. Ingersoll-Rand PLC (NYSE: IR) is another top industrial stock to buy and, with the housing market continuing to grow, the company’s wide range of portfolio products should continue to sell well. Many on Wall Street also see the stock as a good play on the replacement, upgrade and, ultimately, growth in the commercial and residential air conditioning markets. Trends in these markets have been highly correlated with overall commercial construction and are thus earlier in the cycle.

Ingersoll Rand has an outstanding portfolio of global brands and holds leading market share in all major product lines. The geographic and industrial diversity coupled with a large installed product base provides solid growth opportunities for the company within service, spare parts and replacement revenue streams.

Ingersoll-Rand investors are paid a 2% dividend. The Jefferies price objective is set at $75. The consensus target price is $74.56. Shares closed on Monday at $64.02 apiece.

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Four companies in four very different sectors that all offer liquidity, a degree of safety and solid dividends that should continue to rise. All are trading well below 52-week highs and look like good additions to long-term growth portfolios.