7 Cash-Rich, High Dividend Stocks Seeing Short Covering

When choosing a high dividend stock, it is important to look at the free cash flows that would be financing the dividend to assess whether it appears sustainable. One appropriate measure is levered free cash flow, which is the free cash flow available after paying interest and re-paying necessary principal to bondholders. Levered free cash flow is the cash flow from which dividends are paid or earnings are retained (under the Board’s discretion). Using levered free cash flow, we wanted to find attractive, high-dividend stocks, so we screened for those with significant amounts of levered free cash flow as a percentage of market cap.Then we went one step further. Among this list of high cash, high dividend stocks, we found those with recent bullish sentiment, as indicated by significant drops in shares shorted month-over-month as a percentage of share float. The final list of 7 is below.Do you... Read more