High-Yield Dividend Stocks With Bullish Options Sentiment, Undervalued to Free Cash Flow

The most common and sustainable source for companies to pay dividends is through free cash flow. Although companies could use cash reserves from prior periods or even borrow money to continue paying their dividend, free cash flows are the “long-lasting” source. With this idea in mind, we screened high-yield stocks (with dividend yields above 3%) for those that have high free cash flow per share relative to their stock price (with P/FCF under 10). This not only indicates that the company has a healthy amount of free cash flow to pay dividends, but also may indicate an undervalued opportunity. On top of this screen, we searched for stocks that have also seen significantly bullish changes in put/call ratio over the last ten trading days. Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from... Read more