«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.»
With
high cash flow yields and a strong balance sheet with $ 65m in net cash, Seahawk is extremely attractive on an absolute basis.
Not exact matches
AT&T: «Look, AT&T is, actually, I think, putting in a bottom because people are buying stocks [of] domestic companies that have
high yields where the
cash flow's good and I think that's ATT.»
They offer
high - quality current dividend
yields and strong free
cash flow to support past and future consistent dividend growth.
Companies with strong free
cash flow provide
higher quality dividend
yields because we know they have the
cash flow to support the dividend.
Based on current
cash flow you can expect this
high yield stock to continue paying these generous dividends.
The consumer discretionary sector has changed its stripes over the years and is now largely composed of mature companies with strong free -
cash -
flow yield and
higher margins.
Companies with strong free
cash flow provide
higher quality dividend
yields because we know the firm has the
cash to support its dividend.
The
High Yield Bond Fund is a concentrated portfolio made up of liquid securities, focused on high quality non-investment grade bonds with strong cash fl
High Yield Bond Fund is a concentrated portfolio made up of liquid securities, focused on
high quality non-investment grade bonds with strong cash fl
high quality non-investment grade bonds with strong
cash flows.
Equity correlation risk The perception that
high yield issuers may have trouble generating sufficient
cash flow to make interest payments could make them behave like equities.
But then the fund begins to reinvest
cash flows at the new
higher yields, which would steadily boost income.
Next post: How to research
cash flow, balance sheet health, and management focus before buying
high -
yield shares
Whereas the
cash flow statement and balance sheet are still very important considerations in the
High Yield Dividend Newsletter, we put put a greater focus on credit assessments and qualitative, subjective considerations given the riskier nature of such
higher -
yielding ideas, both with respect to income sustainability and subsequent valuation (share price risk).
The
High Yield Dividend Newsletter portfolio seeks to find some of the
highest -
yielding stocks supported by strong credit profiles and solid business models, but not always robust traditional free
cash flow.
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.
Unfortunately, the correlation between dividends and
cash flow is not always present, which places those
high yields at risk.
These companies, with strong free
cash flow and economic earnings, provide
higher quality and safer dividend
yields because we know they have the
cash to support their dividend.
Price - to -
cash flow is also
high from a historic point of view, and the
yield on the market is no longer as attractive as it used to be.
Price - to earnings and price - to -
cash flow multiples are on the
high side relative to history, while dividend
yields are no longer as attractive as they were.
Most value stocks have low price - to - earnings (P / E) ratios,
high dividend
yields, low price - to -
cash -
flow ratios, and stocks with a market value (generally, the stock price) that is lower than the book value (how much the company's net assets are worth).
GM's
high dividend
yield and steady free
cash flow earn in a spot in our Safest Dividend
Yields Model Portfolio.
This is because the very long - term leases that underpin their steady and predictable
cash flows (new leases are generally for 15 to 20 years) also create a
higher beta to
yield (i.e. their stock prices react more severely to movements in interest rates).
Compared with other market sectors, technology also has the
highest free -
cash -
flow yield, a key gauge of financial health and strength.
It has a much
higher dividend
yield of 4.2 %, and, like UGI, it has delivered positive free
cash flow for three consecutive years.
In other words, REITs are
high -
yield pass - through stocks, designed to distribute the majority of
cash flow to shareholders.
The dividend cuts taught me to focus more on earrings and
cash flow than simply chasing stocks with the
highest yield, and my strategy has changed to focus on dividends that are sustainable.
Buy solid companies currently out of favor, as measured by their low price - to - earnings, price - to -
cash flow or price - to - book value ratios, or by their
high yields.
The other positive is that Tom and Mary recognize that using capital gains and return of capital to cover
cash flow needs is usually much more tax beneficial than trying to boost income by having
higher investment
yields.
That's why we recommend that you look beyond dividend
yield when making investments in
high growth dividend stocks, and look for dividend stocks that have also established a business and have at least some history of building revenue and
cash flow.
And, do you recommend a
high -
yield investment portfolio to create the necessary
cash flow during retirement?
It is invested primarily in the credit market, not so much in government bonds because government bond
yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get
higher cash flows, which will support
higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.
Investors who require a minimum stream of
cash flow from their investment portfolio can secure this
cash flow by investing in stocks paying relatively
high, stable dividend
yields.
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.
Since MLPs do not pay any income taxes and pay out almost all of their
cash flow in the form of
cash distributions (their equivalent of corporate dividends), MLPs» dividend
yields are often
higher than corporate dividend payers.
For those investors most interested in dividend income, price to
cash flow might be more relevant for
higher -
yielding dividend paying stocks.
Growth is defined based on fast growth (
high growth rates for earnings, sales, book value, and
cash flow) and
high valuations (
high price - earnings ratios and low dividend
yields).
The return increase from an overall decline in 20 - year US bond
yields, from a
high of 14.1 % in September 1981 to 3.0 % in December 2015, may have been largely offset by lower income on reinvested
cash flows.
Unlike owning an individual bond, the ladder has maturing bonds each year, which gives the portfolio a stream of
cash flow to reinvest in new, cheaper
higher -
yielding bonds.
If it is because the company is having a
cash flow issue, that
high yield may quickly turn to 0 %, as the Board of Directors can't pay a dividend.
Income,
Yield and Duration: Investment grade municipal bonds on average have a
higher coupon
cash flow to bondholders than corporate bonds and that
cash flow is exempt from federal taxation.
This should make intuitive sense because the longer the period of time before a
cash flow is received, the more chance there is that the required discount rate (or
yield) will move
higher.
If market participants believe that there is
higher inflation on the horizon, interest rates and bond
yields will rise (and prices will decrease) to compensate for the loss of the purchasing power of future
cash flows.
With
high -
yield securities, better - than - expected economic growth boosts
cash flow expectations while lower - than - expected inflation helps to preserve
yields in real terms (i.e.,
higher inflation eats into returns).
A review of
high -
yield debt investments should cover: (1) analysis of the industry, including growth rates, special risks and leading companies; (2) analysis of the bond issuer, including the company's position in its industry; new products; management stability; the outlook for growth in revenues and
cash flow as captured in Earnings Before Interest, Taxes, Depreciation and Amortization, also called EBITDA; value of corporate assets and the debt maturity schedule; and (3) analysis of the issue, including special provisions in the «bond indenture,» covenants protecting the bondholder, use of the money raised in bond offerings, debt seniority, secondary market liquidity and call provisions.
But then the fund begins to reinvest
cash flows at the new
higher yields, which would steadily boost income.
Buying
high yields is not enough, those
yields be realizable from companies that can produce
cash flows to support the price of the bonds.
It looked dumb on current performance, but if you look at investing as a business asking what level of surplus
cash flows the underlying investments will throw off, it was an easy choice, because bonds were offering a much
higher future
yield than stocks.
As interest rates rise, investors who reinvest the funds may be able to increase their
cash flow by capturing
higher yields on new issues, which could help offset any paper losses on existing holdings.
The regulator is concerned that investors may be pitched
higher -
yield products that lack a full disclosure of their risks, liquidity (ability to easily buy or sell an investment), and
cash flow characteristics (when payments are made and what the source of those payments is).
To have it make sense as an option, you have to ensure you've got strong
cash flow and the numbers make sense: e.g. credit card rates are
high while your investment
yields are subpar.