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Growth + Quality = 4-Star Stock Picks

Robert Millen, co-portfolio manager of the 4-star Jensen Portfolio Fund, puts the words "quality" and "growth" together and comes up with some potential profits for your portfolio.

His fund is up an average of 7.81 percent per year over the last five years.

"We really try to buy the business as opposed to the stock," he told CNBC. "We're looking for businesses that are very well run, strong financially, have high returns that are generated through durable competitive advantages, and have the consistency of earnings and dividend growth typically well into the future."

Like many other fund managers, Millen also likes companies with significant international exposure.

Recommendations:

Millen's first pick is Emerson Electric.

"Emerson has about half their sales overseas," he said. "This is a company that's increased their dividend for over 50 years in a row."

He also likes Procter & Gamble.

"[It's] well known to everybody, especially the brands that they sell," he said. "Over 60 percent of their sales overseas, focused on those economies where rising standard of living will bode very well for the purchase of their products."

A third choice is Praxair.

"They make industrial gases, both atmospheric and processed gases," he said. "Again, 50 percent of their sales overseas, and they basically help businesses manage their industrial production."

Millen also likes the company's strong recurring revenue stream.

Disclosure:

Disclosure information for Millen was not immediately available.

Disclaimer

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