Cash really is king. This is especially true when looking at dividend stocks. Perhaps nothing is of greater importance for stock dividends than cash flows and balance health. These two factors are perhaps the two biggest factors, whether the firm can significantly increase your winnings on the line. Or, more importantly, to maintain a high yield going. In the end, you can “fake” earnings per share with the accounting above, but you can not fake how much money the firm to the Bank.
So, it is clear that investors looking for big dividends, should focus not only on the original return, but on hard cash/cash flow.
But what dividend stocks are really “cash” and a lot of Franklin’s cash flows and hoarded on their balance sheets? Here are five that are perfect.
Cash-Rich Dividend Stocks: Amgen Inc. (AMGN)
Source: Shutterstock From
Dividend Yield: 3.11%
The biotechnology industry is not typically where investors go to find inventory dividends. However, when you’re one of the first biotech to be major blockbusters under your belt, You can’t help but generate billions in cash flow. And that’s only in the case of Amgen Inc. (NASDAQ:AMGN).
After the construction of the Foundation for its portfolio of innovative drug treatments for red and white blood cell deficiencies in the 90s, AMGN has continued to build an impressive portfolio of drugs. Enbrel and Neulasta are two of the most widely prescribed drugs in its category, while Repatha, Prolia and blood-cancer drug Kyprolis continues to see sales growth.
This has created a number of crazy cash flow. AMGN reported last year by more than $10.7 billion of free cash flow and a cash balance of nearly $ 42 billion. This leaves a large space for growth of its 3.11% dividend, are a number of serious mergers and acquisitions, as well as beef-up their production. Amgen has recently raised the payout by 15% at the beginning of the year. But, obviously, there’s more room to increase.
For investors who are looking for rich dividends on the shares of Amgen can be.
Rich dividend stocks: Microsoft Corporation (msft)by volume
Source: Shutterstock From
Dividend Yield: 1.85%
Nadella may be the most important person in Microsoft Corporation (USA:Tuesday) story, except bill gates. Nadella was responsible for sparking the recent revival in Mr. softy and took software in the cloud.
And this movement seems to be correct. Microsoft continues to snag large corporate clients on the full range of its products. In the last quarter, said Tuesday the 90% year-on-year growth from Microsoft Azure. Azure is an infrastructure-as-a-service (iaas) and platform as a service (paas) product, while the Dynamics of 365 — its a customer relationship Management software-as-a-service (SaaS) products saw a year-on-year growth of 69%. Adding to the continued growth of Office 365 for consumers and business, and you have a recipe for the Russian market.
This transformation has another purpose as well. Namely, producing a lot of cash flows.
The program already has a high margin and those margins are even higher when you make customers pay for it via subscription. In the result, the Russian market managed to produce more than 30 billion dollars of free cash flows in the last year, and she grew up accumulated funds to a staggering $ 135 billion.
With cash like that no wonder why the Russian market has managed to grow its dividend by nearly 225% in just eight years. When it comes to stock dividends, Microsoft could not be beaten.
Cash-rich dividend stocks: Valero energy (front)
Source: Mike Mozart via Flickr
Dividend Yield: 3.33%
When it comes to stock dividends, it’s good to be king. And downstream player Valero energy Corporation (NYSE Ticker symbol:!) just happens to wear the crown. With 15 objects, the front is the largest independent recycler. And this position continues to provide the investors with greater profits and dividends for many years.
With my big system, the front capable of removing every margin of profit from the crack spread, and each barrel of oil that passes through its facilities. This is important because recycling is a game of inches. Every Nickel and dime counts. And Valero has been very successful, picking up those nickels and dimes. Over the past year, the update was free cash flow of $4.09 billion.
This helped the firm to create it for money more than $5.2 billion.
So, with the crack spreads moving in favour of the goal she must continue to draw more money from its operations. Even better that he was able to shove a lot of their assets in a tax favourable position of MLP- Valero energy partners (Ticker NYSE:VIP hall), to help increase their cash flows in the future.
Add all this together, investors get a 3.33% dividend yield that continues to grow. Front just recently raised the payout by 14%.
Cash-Rich Dividend Stock: Visa (V)
Source: Shutterstock From
Dividend Yield: 0.70%
I know what you’re thinking. 0.70% dividend? I came here for the stock dividend, not a payment token. But it’s a small return on Visa Inc (indexin) is really masking one of the best dividend growth stories around.
We all know, a visa. But many of us don’t really know what he’s doing. In non-credit and not direct lending. Firm, what is called the payment system — that is, he simply moves the money from one account to another over a secure payment network. It’s toll roads and fees for merchants, banks and other institutions, Commission every time someone uses a credit or debit card. This position of the Commission is incredibly high-margin and profitable for the visa.
Last year, more than 44.579 billion transactions worldwide have gone through the visa network. The firm collected a fee each time. What continues to strengthen the cash flows from VISA and hefty balance. The firm ended the year 2017 with more than $ 14 billion in cash.
Visa continued use that cash to reward shareholders with rising dividends. In the decades since V started to pay dividends, its growth of payments amounted to almost 700%. That bests the majority of shares dividend per mile. For investors who want to see a big increase in their income, Visa is one of the best options.
Rich reserves dividends: the Moody Corporation (MCO)
Dividend Yield: 1.08%
When looking for dividend stocks with great cash flow and bills, the best plays are often overhead or capital costs. With this idea in mind, there’s a reason why Warren Buffett owns shares of Moody’s Corporation (Ticker NYSE:MCO).
Moody’s — along with rival standard & poor’s — provides credit ratings, research and risk analysis. And as one of the three main rating agencies, investors, banks and other clients rely on MCOs to make their investment decisions. In fact, the company can’t issue bonds without a rating Agency giving him this blessing. That sends a lot of customers your way.
The best part is that only the real Moody overhead is wages. That translates to lots of cash generation and mega-sized margins on their products. Last year, Moody’s has managed to create more than $ 1.6 billion. free cash flows on sales of $ 4.2 billion. Now the cash balance is approximately $ 3.4 billion.
This strong generation of cash allowed the stock of MSO to pay a lot of dividends for the year. She grew up profit from a measly 9 cents, when the IPO, in 2001 for 1.52 per share of$.
For investors looking at dividend stocks, MCO product to maintain payments. This is a low cost, a wide ditch has a lot to be desired looking for income.
At the time of this writing, Aaron Levitt was long AMGN.