Cash truly is king. That’s especially true when looking at dividend stocks. Perhaps nothing matters more to dividend stocks than cash flows and balance sheet health. These two factors are probably the two biggest determinants of whether a firm can significantly grow their payout down the line. Or more importantly, keep a high-yield going. After all, you can “fake” earnings-per-share with accounting tricks, but you can’t fake how much money a firm has in the bank. So, it stands to reason, that investors looking for big-time dividends, should focus not on just initial yield, but on a firm’s cash/cash flows. But what dividend stocks are truly “cash rich” and have plenty of Franklin’s in cash flows and hoarded away on their balance sheets? Here are five that fit the bill perfectly.
The biotech sector isn’t normally someplace investors go to find dividend stocks. However, when you’re one of the first biotech’s to have major blockbusters under your belt, you can’t help but generate billions in cash flows. And that’s just the case with Amgen, Inc. (NASDAQ:AMGN). Satya Nadella could end up being the most important person in Microsoft Corporation’s (NASDAQ:MSFT) history besides Bill Gates. Nadella was responsible for sparking the recent renaissance at Mr. Softy and took the software company to the cloud. When it comes to dividend stocks, it’s good to be the king. And downstream player Valero Energy Corporation (NYSE:VLO) just happens to wear the crown. I know what you’re thinking. A 0.70% dividend? I came here for dividend stocks, not a token payout. But that small yield at Visa Inc (NYSE:V) is truly masking one of the market’s best dividend growth stories around. When looking for dividend stocks with big cash flows and balances, the best plays often have little to no overhead or capital spending. With that idea in mind, there’s a reason why Warren Buffett owns shares of Moody’s Corporation (NYSE:MCO).
Source: InvestorPlace
Related Articles:
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- Are Defense Stocks Good Defensive Stocks?
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1895
- Who is David Dodd and Why Should We Listen to Him
- International Securities For A Diversified Income Portfolio
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Over the years, few companies have served income investors better than the S&P 500 Dividend Aristocrats. To become a “Dividend Aristocra...
-
There is a company that’s doing exactly what you want to do: lending to venture growth stage businesses in the tech sector. Better yet, that...
-
Cheap valued stocks with high yields will never go out of style. I could go on about the powers of compound interest, but I think we're ...
-
First, and perhaps the most obvious, is that being able to enter biotech stocks at a cheaper price — assuming the companies are not fundamen...
-
This has got to be the most interesting high-yield opportunity to watch this earnings season. The company was already one of the most genero...
-
The steady stream of payments from dividend stocks can act as some ballast in the rough seas. After all, if you’re already getting a 3 to 4%...
-
I am adding to my existing long position in this REIT. The commercial property REIT has very convincing portfolio and dividend coverage stat...
-
In this day and age, quarterly earnings are arguably the most watched events in the stock market. And when a company reports its quarterly f...
-
Owning dividend stocks can be a great way to not only grow your portfolio but also get a tax-effective cash return on your investment. Wheth...
-
Owning high-quality, high-yield dividend stocks is the most effective way for investors to achieve outsize returns over the long run. But wh...
0 comments
Post a Comment
Post a Comment