Looking for a stock that will grow its dividend in the future and pay you handsomely now? The yield is not the only thing you need to focus on. You will also need to check the stock's Free Cash Flow Payout. This tells you how much cash the stock has left over after paying the normal operating expenses. This is the cash used to pay for acquisitions, debt obligations, and dividends!
This week, I am screening my database for stocks with a free cash flow payout below 35% and a dividend yield over 3%. The formula for Free Cash Flow Payout is simply Annual Dividend Per Share divided by free cash flow per share. Free cash flow is operating cash flow less normal capital expenditures (normally the first line in the investing section). Obviously, this is not a buy list, but a potential idea list that will require additional due diligence.
Below are eight stocks with debt that have a low free cash flow payout and a dividend yield over 3%...
Read full article...
This week, I am screening my database for stocks with a free cash flow payout below 35% and a dividend yield over 3%. The formula for Free Cash Flow Payout is simply Annual Dividend Per Share divided by free cash flow per share. Free cash flow is operating cash flow less normal capital expenditures (normally the first line in the investing section). Obviously, this is not a buy list, but a potential idea list that will require additional due diligence.
Below are eight stocks with debt that have a low free cash flow payout and a dividend yield over 3%...
Read full article...
No comments:
Post a Comment