Over the past decade, First Solar has earned a superior
free cash flow yield in every year but one.
Not exact matches
The company is a
cash cow — it has about $ 200 million
in free cash flow and pays a 3.4 %
yield — thanks to recurring revenues.
Metro gets a percentage of sales from every location, so it generates a lot of
free cash flow, which it then returns to shareholders
in the form of 1.53 %
yield and share buybacks.
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.
The methodology provides a well - screened group of stocks that also delivers
yields greater than the market (S&P 500
yields ~ 2 % while the stocks
in our portfolio have an average
yield of 6.5 %), safety
in the sustainability of the
yield because of strong
free cash flow, and the potential for capital gains as each stock is currently undervalued.
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.
When diving into the valuation ratios based on trailing earnings and
free cash flow, the energy sector offered a choice was between E&P and Integrated oil companies that had sustained large drops
in their earnings, and Refiners who had an earnings
yield close to 12 %, and had seen an uptick
in earnings.
GM's high dividend
yield and steady
free cash flow earn
in a spot
in our Safest Dividend
Yields Model Portfolio.
Fortunately for investors, GM has generated a cumulative $ 16 billion
in free cash flow over the past four years, more than enough to cover its 4 % dividend
yield, as shown
in Figure 4.
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.
All equities qualified
in our portfolio must consistently generate above - average
free cash flow and often provide good dividend
yield.
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.
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).
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.
During 2009, the company will likely
yield 13 - 19 % of its market capitalization
in cash flow and 6 - 11 %
in free cash flow (FCF).
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.
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.
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 yiel
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 yi
Free Cash Flow Yield in Dividend Analysis), we divided the S&P 500 member stocks into quintiles based on free cash flow yi
Cash Flow Yield in Dividend Analysis), we divided the S&P 500 member stocks into quintiles based on free cash flow y
Yield in Dividend Analysis), we divided the S&P 500 member stocks into quintiles based on free cash flow yiel
in Dividend Analysis), we divided the S&P 500 member stocks into quintiles based on
free cash flow yi
free cash flow yi
cash flow yieldyield.
The Cambria Shareholder
Yield ETF is an actively managed fund that employs the manager's quantitative algorithm to select U.S. listed companies that show strong characteristics
in returning
free cash flow to their shareholders.
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.
It's cheap (taking the midpoint of its guidance it's on less than 5.5 x earnings), it has got a strong balance sheet (net debt / EBITDA was 0.8 x at end - 2010), it has a stable business model (it is the biggest distributor of fruit and vegetables
in Europe, with a reach that enables it to supply multiples across different countries), it has a decent dividend
yield (circa 4.5 %) and it is spitting out
cash (
free cash flow for the twelve months ended 30 June 2011 amounted to $ 29.0 m — that's nearly a quarter of the group's market cap).
You can retire comfortably
in 10 years with 10 +
free - and - clear rental homes when you approach this business with a sensible plan of buying houses at 10 % below fair market value with 10 % down payment and 10 % +
yield on your investment (the author's 10/10/10 plan), and wisely reinvesting
cash flow, equity gains, and selling the loser houses to pay off the debt of the winners.