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
-
Stocks that offer big dividend yields are often backed by businesses that are going through rough patches and experiencing significant downt...
-
With the calendar turning over to 2019, many of the trends causing the rise in volatility aren’t stopping. To that end, making a calculated ...
-
Many dividend stocks tumbled over the past year, since conservative investors often shift from high-yielding stocks to bonds when interest r...
-
Because we're expected to live longer than those just a generation or two removed from us, we'll need income during our retirement f...
-
This company has become an income machine for investors over the past three decades, thanks in large part to the 132 consecutive dividends i...
-
For the most part, stock market investors love the technology sector. While tech stocks were hit particularly hard during the latest market ...
-
If you want to find good deals this holiday season, forget the department stores. Instead, go to the stock market. Due to the lackluster per...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Even though GDP is growing nicely, consumer spending is red hot and unemployment is low, the stocks that are outperforming are all ones we’d...
-
The yield is 9.07%, with 1.14X coverage in Q3 '18. EVA has a $7.4B backlog that's contracted through 2025. Management expects EBITDA...
0 comments
Post a Comment
Post a Comment