10 Dividend Champions With Significant Free Cash Flow

If you are looking for sources of dividend income, be sure to check a company's free cash flow to gauge whether they can continue to fund their dividend payment. Below we present a list of 10 dividend champions (i.e. companies that have consistently raised their dividend over the past 25 years). These companies also appear to be undervalued, and have high levered free cash flow relative to market cap (Levered free cash flow is the free cash flow from operations after paying back interest on debt and making necessary principal repayments for the year)We last wrote about this screen on April 14, 2011. On that day, the screen produced a list of 8 companies. Since then, 5 out of 8 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 62.5%). The screen averaged a return of 4.1% vs. an index return of 2.6%.... Read more