A Barron's interview with Buzz Zaino recently offered an intriguingly contrary perspective on the stock market. Zaino runs the Royce Opportunity Fund (RYPNX), which has racked up average annual gains of 18.2% over the past 10 years, and 15.6% over the past five years. It's a small-cap fund with no load; its recent top holdings included Scholastic
Unusually, Zaino's spoke positively about industries widely viewed as moribund, such as movie theater chains. To me, that's like hearing that I should consider investing in typewriter companies.
It sure seems like the movie theater business isn't poised for great growth, given the rising success of Netflix
Zaino singled out three cinema chains he felt deserved a closer look: Cinemark
What to do
Go ahead and consider these seemingly unappetizing industries. They may not be growing briskly, but as long as they're generating a lot of cash, they may still have some worthwhile value to offer shareholders, especially in the form of dividends. Plain ol' boring industries can perform well, too, as railroads' strong recent performance demonstrates.
Meanwhile, if you're interested in finding other payers of hefty dividends, including some in more promising industries, take a free trial to our Motley Fool Income Investor newsletter. Its recommendations are beating the market by nearly seven percentage points on average, and a free 30-day trial will give you full access to all past issues, so that you can read about every recommendation in detail.
Longtime Fool contributor Selena Maranjian owns shares of Netflix. Netflix is a Stock Advisor recommendation. Try any of our investing services free for 30 days. The Motley Fool is Fools writing for Fools .