4 Good-Yielding Stocks With A Low Price To Free Cash Flow And A Low Debt
Many investors prefer using free cash flow instead of net income to measure a company's financial performance because free cash flow is more difficult to manipulate. Free cash flow is the operating cash flow minus capital expenditure. I have searched for profitable companies that pay rich dividends and that have a very low price to free cash flow. Those stocks would have to show a very low debt and robust earnings growth prospects. I have elaborated a screening method, which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research. All the data for this article were taken from Yahoo Finance and finviz.com. The screen's formula requires all stocks to comply with all following demands:
The forward dividend yield is greater than 3.0%.
The payout ratio is less than 75%.
The price to free cash flow is less than 14.
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