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15 Large Cap Cash Machines With Big And Safe Dividends

To identify companies with hefty yields that are “safe”—that is, the dividends are unlikely to be trimmed—We screened the S&P for stocks yielding at least 3%.

We excluded energy and mining companies and other outfits tied to commodity prices, as the recent bear market in commodities makes further dividend cuts likely, even though oil has begun to rebound.

We also screened for companies whose free-cash-flow yield—free cash flow divided by stock price—exceeds their dividend yield. 

Free cash, which is what’s left after a company makes all of the necessary investments to run its business, is an important measure of stability and potential growth, as well as the source of dividend payments. 

The more of it, the better—and the more likely a company is to maintain and, better yet, grow its payout.

These results apeared on the screen:



15 Large Cap Cash Machines With Big And Safe Dividends (click to enlarge),
Source: Factset, Barrons.com

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