Income investors are always on the hunt for dividend stocks that have a nice, sustainable yield. That’s not often easy to find, though. Many dividend stocks may not have a large enough moat to defend their position, and what may appear to be a sustainable payout could suddenly come under fire if the company rests on its laurels. That’s why I like dividend stocks that have tons of cash on hand. Even if they have some debt offsetting it, if that cash hoard is so big that the dividend stock can withstand an assault from the Avengers, then I’m not going to worry over the long-term.
The other benefit of having a dividend stock with a lot of cash and little or no debt? It provides you with an effective discount to the stock price. If a dividend stock trades at $50 per share but has $10 per share in cash, you are getting the business for $40 per share. That’s a hidden value that may make the stock less expensive than it may appear. Let’s look at some great dividend stocks that are flush with cash: Microsoft Corporation (MSFT), Garmin Ltd. (GRMN) and Intel Corporation (INTC).
Source: InvestorPlace
Related Articles:
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell Intel?
- 4 Dividend Stocks For A Confident And Secure Future
3 Dividend Stocks That Are Flush With Cash
Posted by D4L | Saturday, June 06, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.