«This solid labor base with its strong rental demand supports the high
cash flow yields that our investors are seeking as an alternative to the bond and equity markets.»
Some of these investments can result in
cash flow yields in excess of 8 %, which is extremely high for real estate returns, especially in today's market where property prices have risen, driving down overall profitability.
I believe this is a great passive income idea as you are able to generate strong monthly
cash flow yields for a predetermined amount of time.
There are some different tactics... many like free
cash flow yields, quality businesses, but in the end, the one thing they have in common is they want to buy really undervalued situations.
With high
cash flow yields and a strong balance sheet with $ 65m in net cash, Seahawk is extremely attractive on an absolute basis.
At the depths of bear markets, both free
cash flow yields and funding yields rise considerably, but the FCF yields more so.
The companies that actually do buybacks, as opposed to merely announcing them, do very well, and that is intensified for those that buy back stock at high free
cash flow yields.
With stocks, if you focus on companies with around 10 % free
cash flow yields and highly predictable, sustainable franchises, you protect your downside and set yourself up for nice capital appreciation.
The structural issue at work encouraging the deal - making is that
cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.
Asset allocation begins by measuring likely
cash flow yields on asset classes, together with the likelihood of obtaining those estimates.
On pages 74 - 75 he gives a strained view of margin of safety, comparing free
cash flow yields to the 10 - year Treasury yield.
That may be true over the long term, but valuations have reached a level (numerous 10 % + free
cash flow yields) where there could be some attractive investment opportunities.
27 of 94 Monthly Paying (MoPay) U.S. dividend stocks were tagged «safer» by showing positive annual returns, and free
cash flow yields greater than...
You know, I don't think — I look at free
cash flow yields.
Free
cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share.
Finally, we screen for return on invested capital (ROIC), one of the most widely - used factors, and free
cash flow yield.
Better yet, Traveler's earns a 13 % free
cash flow yield.
It's somewhat stunning that FB and GOOG trade around a 5 % free
cash flow yield, which is roughly in line with the broader market averages.
Just like the other stocks on this list, American Express has generated over $ 14.9 billion in free cash flow over the past five years and currently earns a 6 % free
cash flow yield.
With fundamental results coming in largely as expected during the year, we believe the stock price decline was primarily due to industry and market pressures on its peer group, and we believe the current high free
cash flow yield makes the stock an attractive investment.
Over the past decade, First Solar has earned a superior free
cash flow yield in every year but one.
Figure 2 compares First Solar and SunPower on the basis of free
cash flow yield over the past decade.
Or, the stock has a free
cash flow yield of 10 % and is growing 3 %, or 5 %, or 8 % - or really anything but 0 % or negative percent.
Let's say a no - growth stock has a price - to - free - cash - flow of 15 (that's a 6 % to 7 % free
cash flow yield).
We have confidence it will be profitable in the next recession, yet it trades at 9.5 x next year's earnings with a 13 % free
cash flow yield.
Qualcomm trades at a roughly 10 % free
cash flow yield or 10 times earnings once one adjusts for the roughly $ 30 billion in cash they are hoarding.
And here is the second try: Gross margins as a ratio of Assets over 13 %, free
cash flow yield over 5 %, Long - term debt as a ratio of free cash flow greater than five, less than 20 % above the 52 - week low.
We use three different valuation metrics (earnings yield, free
cash flow yield, and EBITDA to EV).
Instead of looking at whether the prices have gone up or down, and getting excited or scared, they need to begin to think in terms of what is the future
cash flow yield of the investment that I am pursuing?
Excluding net cash (Amdocs has over $ 9 a share in cash), Amdocs trades at a roughly 10 % trailing free
cash flow yield and a little over 10 times forward earnings estimates.
There are other yield measures that exist such as the yield to first call, yield to worst, yield to first par call, yield to put,
cash flow yield and yield to maturity.
A couple of my favorite things to look for in determining quality is growth of book value over time (this tells me the company might have some sort of competitive advantage) and free
cash flow yield (free cash flow divided by price - I like stock with 10 % FCF yield).
Review Amazon's cash flow situation, including its free
cash flow yield, operating cash flow from organic growth and cash flow from debt financing.
The offer values OEG at a trailing 5.4 times EV / EBITDA ratio, a P / E of 9.6 times and a 10 % + free
cash flow yield.
Supposing a 4 % free
cash flow yield and a 5 % growth rate in earnings, the company offers long - term rewards of 9 % per year to shareholders.
For large companies the best factor was free
cash flow yield, leading to compound growth of 10.81 %, with earnings yield a close second with a compound return of 10.64 %.
This cycle will turn when
the cash flow yield of assets reaches levels people can make money on in the worst environments; where equity funds new projects with no debt, and the profit is obvious.
The free
cash flow yield and the P / E and the book value of a movie studio — especially a young studio like DreamWorks Animation — is irrelevant.
I'm not really sure as to why it outperforms and it has also surprised me because while the Buffett investors are looking for a very solid
cash flow yield where they expect it to be stable over a period of time, we are looking for fat returns in a very short term and the only way you can get that is through these «ugly» businesses!
While we view it as highly unlikely that $ 35m - $ 50m in cash from operations is the new norm, current prices still represent a reasonable investment with a 13 % -19 %
cash flow yield and a 6 - 11 % FCF yield (not to mention half of BV).
However, a return to our estimates of normal cash flows represents a roughly 65 % annual
cash flow yield and a 46 - 50 % FCF yield.
In the paper, we incorporated free
cash flow yield into a dividend strategy.
As displayed in Exhibit 2, the portfolio's 3.57 % average dividend yield was supported by a 9.5 % average free
cash flow yield, compared with the benchmark's 1.99 % average dividend yield funded by 4.87 % average free
cash flow yield over the sampled history.
Since the amount of dividends paid is shown on a company's cash flow statement, another accepted measure is to use cash flow related fundamentals, such as free
cash flow yield, to provide additional insight on company's financial condition.
Our analysis of a combined dividend and free
cash flow yield portfolio [3] showed that a stable dividend income can be achievable when funded by sufficient free cash flow.
The integrated value is the product of dividend yield score and free
cash flow yield score, each of which is computed as transforming the standardized fundamental data to cumulative normal distribution, in the range of 0 to 1.
We also introduce cash - flow - based measurements, such as free
cash flow yield, that can be combined with traditional dividend measurements to provide additional insight into the quality of dividends.
In our recently published research paper (Incorporating Free
Cash Flow Yield in Dividend Analysis), we divided the S&P 500 member stocks into quintiles based on free
cash flow yield.
When you see the Total Return in the examples in the article, I am referring to an aggregation of
the cash flow yield plus the average annual capital appreciation of an investment asset.