Dow (DOW), a commodities chemical manufacturer divested from owDuPont, is also a cyclical stock that can be bought when the market conditions are poor. Lieberman believes that Dow ’s 8.5% dividend yield is guaranteed because this well-managed company can generate $ 2.6 billion in free cash flow each year.
What is certain is that after the S & P 500 index soared 33% from its March low, the stocks favored by the three above-mentioned value investors may be as vulnerable to pullbacks as other stocks. But even in the face of the current uncertainties, these three stock pickers are still confident about the prospects they see on the other side of this recession.