5-Star Dividend Stocks Poised to Pop: Tronox

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, titanium ore and titanium dioxide producer Tronox (NYSE: TROX  ) has earned a coveted five-star ranking.

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

Tronox facts

Headquarters (founded)

Stamford, Conn. (2005)

Market Cap

$2.5 billion

Industry

Commodity chemicals

Trailing-12-Month Revenue

$1.7 billion

Management

Chairman/CEO Thomas Casey

CFO Daniel Greenwell

Trailing-12-Month Return on Capital

9.3%

Cash/Debt

$185.9 million / $744.8 million

Dividend Yield

4.8%

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

On CAPS, 94% of the 17 members who have rated Tronox believe the stock will outperform the S&P 500 going forward.

Just this morning, one of those Fools, All-Star TMFDeej, tapped Tronox as a particularly special bargain opportunity:

I've been watching this one since the company emerged from bankruptcy in 2011. Emergence from bankruptcy is a type of special situation that can often result in absolutely amazing returns for investors. ... I strongly believe that the housing market in the United States is improving and will continue to do so. Since 40% of the demand for [Tronox's] pigments comes from North America, and a great deal of that from white paint, this will definitely help the company. Heck even the recent horrible and tragic (my heart goes out to all of those affected by them) storm in the Northeastern U.S. should lead to an uptick in demand for white paint. These things should help to offset some of the recent weakness in the Titanium Dioxide market. One scary aspect of investing in [Tronox] is that a global economic slowdown will definitely hurt the company. ... However it seems as though much of that is priced into the stock at this point.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Tronox may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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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