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
-
Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself. And unfortunately, even r...
-
Today, we’ll look at three high-yield dividend stocks that have earned a ‘perfect 10’ from the Smart Score. For investors seeking a clear fo...
-
How do you assess risk? Different investors have different approaches, and when a Black Swan event topples the market, risk assessment becom...
-
Master limited partnerships (MLPs) have fallen out of favor with investors in recent years, thanks to a combination of continued turbulence ...
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
With the price of oil rebounding, I wanted to find five cheap energy stocks that have solid dividend yields. In other words, the dividends a...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right ...
-
This article deals with a sensitive subject - prisons, more precisely, US prisons. Regardless of which side of the argument one takes, sadly...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.