6 Stocks Seeing Rapid Growth in Dividends and Free Cash Flows By Kapitall. Cash flow analysis is very important when considering a stock for its dividends. Because free cash flow is the first and most sustainable source for dividend payments, healthy cash flows indicate that a company’s dividend is more sustainable.
We ran a screen with this idea in mind, searching for dividend stocks that have seen fast growth in free operating cash flows over the last five years (measured with compound annual growth rate). We then screened for stocks seeing high growth in their dividend, comparing the current year dividend per share estimate to the trailing-twelve-month dividend per share.
Here are the results:
1. CNOOC Ltd. (CEO)
Dividend yield at 2.11%
2. International Paper Co. (IP)
Dividend yield at 2.43%
3. KKR Financial Holdings LLC (KFN)
Dividend yield at 6.85%
4. MKS Instruments Inc. (MKSI)
Dividend yield at 2.22%
5. El Paso Electric Co. (EE)
Dividend yield at 2.67%
6. First Commonwealth Financial Corp. (FCF)
Dividend yield at 2.26%
Related Stock Ticker:
CEO, IP, KFN, MKSI, EE, FCF
Source: Seeking Alpha