7 Stocks That Look Too Cheap Given Their High Cash Flow and Dividends

 

These dividend stocks have ample yields that are fully covered by their firms' cash flow and look cheap

 

 

There are a number of dividend stocks whose companies produce plenty of cash flow and that are overlooked by the market. In many cases, these companies have high dividend yields. But their key characteristic is their cash flow more than covers the dividends being paid to shareholders.

 

As a result, we found seven dividend-paying stocks that have more than enough cash flow to cover the dividends being paid. These stocks are cheap from a number of value measures, including their price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) ratios.

 

Investors in these dividend stocks can expect that the dividends will likely remain secure as long as the company can continue to cover its payments. As a bonus, some of these seven stocks also are buying back shares.

 

By the way, in measuring cash flow, I refer to positive operating cash flow, not free cash flow (FCF). In addition, it’s possible the company may issue some debt to supplement its finances for their dividends.

 

 

Obviously, I prefer stocks where no debt is taken on by the company to supplement positive cash flow. However, all of these stocks are on the NYSE, so their financials are solid enough to raise any debt.

 

Here is the list of the seven dividend stocks whose cash flow is available to cover their dividends: Continue reading …