4 Undervalued Dividend Stocks With High Cash-Flow Growth

One consideration to keep in mind when choosing sources of dividend income is whether a company is generating enough cash flow to cover dividends – after all, companies usually pay their dividends from their cash flows. We ran a screen on dividend stocks paying yields above 2% and sustainable payout ratios below 35%. We searched this universe for those seeing at least 20% growth in free operating cash flow/revenue, comparing the trailing-12-month ratio to the five-year average. On top of this, we found those undervalued to earnings growth (with PEG < 1).Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.Your browser does not support iframes. We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over... Read more