Dividends4Life: 3 Cash-Is-King Dividend Stocks

3 Cash-Is-King Dividend Stocks

Posted by D4L | Friday, June 13, 2014 | | 1 comments »

Levered free cash flow (LFCF) is too often overlooked as a measure of health in dividend stocks, but it’s arguably the most important factor in determining whether a company will keep up its payouts. After all, levered free cash flow is what’s left after a company pays interest on debts, dividend, capital expenditures, you name it.

Here are three great dividend stocks where cash is king, as they have big piles of cash leftover after paying interest and everything else you can think of: Mack-Cali Realty (CLI) Dividend Yield: 5.5%, AT&T (T) Dividend Yield: 5.2% and R.R. Donnelley (RRD) Dividend Yield: 6.7%. Revenue can ebb and flow, earnings can come and go, but as long as dividend stocks are buttressed by a gusher of levered free cash flow, there’s little reason to worry that the dividend spigot will be turned off.

Source: InvestorPlace

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  1. A Frugal Family's Journey // June 13, 2014 at 9:45 AM

    Our family owns shares in AT&T. I fact, our internet and cell phone is through AT&T. Why not pay into a company you already own, right! :) But I really don't know much about CLI or RRD. Since I do like companies with a lot of cash reserves so I may have to look into these and possibly add them to my watch list. Thanks for sharing. Best Wishes! AFFJ

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