That doesn’t mean investors should shun stocks. It means investors need to be more discriminating in what they add to their portfolio.
If you want to follow in the footsteps of legendary investors like Warren Buffett, Peter Lynch, and John Neff, then keep your eye out for high dividend-yielding stocks with lots of free cash flow, and strong fundamentals.
Free cash flow is the amount of “free cash,” or money left over after it pays for operations and necessary capital expenditures.
The more money a company has in the bank, the greater the chances are it can sustain or increase its high dividend yield, buy back shares, expand its business, or pay down debt. And ultimately, increase shareholder value.
One of the most common ways to calculate the free cash flow yield is to take the amount of free cash flow the company generates per share and divide it by the share price. Another popular way (and the equation I am using) is to divide the company’s free cash flow by the market cap. The higher the ratio, the more attractive the investment.
Below are 5 top stocks with high dividends and a big free cash flow that gives potential to pay high dividends in crisis times and hike them too.
These are the results....
AT&T -- Yield: 5.82%
AT&T (NYSE:T) employs 250,730 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $198.86 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).
Financials: The total debt represents 28.03% of AT&T assets and the total debt in relation to the equity amounts to 95.02%. Due to the financial situation, a return on equity of 7.02% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $1.02. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.78, the P/S ratio is 1.50 and the P/B ratio is finally 1.94. The dividend yield amounts to 5.82%.
Stock Charts:
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| Long-Term Stock Price Chart of AT&T (T) |
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| Long-Term Dividend Payment History of AT&T (T) |
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| Long-Term Dividend Yield History of AT&T (T) |
Ford Motor Company -- Yield: 4.43%
Ford Motor Company (NYSE:F) employs 187,000 people, generates revenue of $144,077.00 million and has a net income of $3,186.00 million. The current market capitalization stands at $53.68 billion.Ford Motor Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,803.00 million. The EBITDA margin is 8.89% (the operating margin is 2.30% and the net profit margin 2.21%).
Financials: The total debt represents 57.15% of Ford Motor Company assets and the total debt in relation to the equity amounts to 480.43%. Due to the financial situation, a return on equity of 12.52% was realized by Ford Motor Company.
Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, Ford Motor Company paid $0.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.60, the P/S ratio is 0.37 and the P/B ratio is finally 2.19. The dividend yield amounts to 4.43%.
Stock Charts:
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| Long-Term Stock Price Chart of Ford Motor Company (F) |
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| Long-Term Dividend Payment History of Ford Motor Company (F) |
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| Long-Term Dividend Yield History of Ford Motor Company (F) |
Emerson Electric -- Yield: 4.29%
Emerson Electric (NYSE:EMR) employs 115,100 people, generates revenue of $24,537.00 million and has a net income of $2,184.00 million. The current market capitalization stands at $28.77 billion.Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,936.00 million. The EBITDA margin is 20.12% (the operating margin is 14.44% and the net profit margin 8.90%).
Financials: The total debt represents 24.92% of Emerson Electric assets and the total debt in relation to the equity amounts to 59.53%. Due to the financial situation, a return on equity of 20.74% was realized by Emerson Electric.
Twelve trailing months earnings per share reached a value of $3.61. Last fiscal year, Emerson Electric paid $1.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.14, the P/S ratio is 1.17 and the P/B ratio is finally 3.01. The dividend yield amounts to 4.29%.
Stock Charts:
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| Long-Term Stock Price Chart of Emerson Electric (EMR) |
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| Long-Term Dividend Payment History of Emerson Electric (EMR) |
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| Long-Term Dividend Yield History of Emerson Electric (EMR) |
Exxon Mobil -- Yield: 3.99%
Exxon Mobil (NYSE:XOM) employs 75,300 people, generates revenue of $394,105.00 million and has a net income of $33,615.00 million. The current market capitalization stands at $305.33 billion.Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51,379.00 million. The EBITDA margin is 13.04% (the operating margin is 8.65% and the net profit margin 8.53%).
Financials: The total debt represents 8.33% of Exxon Mobil assets and the total debt in relation to the equity amounts to 16.70%. Due to the financial situation, a return on equity of 18.67% was realized by Exxon Mobil.
Twelve trailing months earnings per share reached a value of $5.61. Last fiscal year, Exxon Mobil paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.05, the P/S ratio is 0.77 and the P/B ratio is finally 1.76. The dividend yield amounts to 3.99%.
Stock Charts:
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| Long-Term Stock Price Chart of Exxon Mobil (XOM) |
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| Long-Term Dividend Payment History of Exxon Mobil (XOM) |
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| Long-Term Dividend Yield History of Exxon Mobil (XOM) |
Procter & Gamble -- Yield: 3.65%
Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $76,279.00 million and has a net income of $8,930.00 million. The current market capitalization stands at $197.16 billion.Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,979.00 million. The EBITDA margin is 20.95% (the operating margin is 15.46% and the net profit margin 11.71%).
Financials: The total debt represents 23.44% of Procter & Gamble assets and the total debt in relation to the equity amounts to 48.62%. Due to the financial situation, a return on equity of 13.23% was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Procter & Gamble paid $2.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.93, the P/S ratio is 2.58 and the P/B ratio is finally 3.22. The dividend yield amounts to 3.65%.
Stock Charts:
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| Long-Term Stock Price Chart of Procter & Gamble (PG) |
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| Long-Term Dividend Payment History of Procter & Gamble (PG) |
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| Long-Term Dividend Yield History of Procter & Gamble (PG) |
Coca-Cola -- Yield: 3.33%
Coca-Cola (NYSE:KO) employs 129,200 people, generates revenue of $45,998.00 million and has a net income of $7,124.00 million. The current market capitalization stands at $172.35 billion.Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,474.00 million. The EBITDA margin is 27.12% (the operating margin is 21.04% and the net profit margin 15.49%).
Financials: The total debt represents 45.36% of Coca-Cola assets and the total debt in relation to the equity amounts to 137.68%. Due to the financial situation, a return on equity of 22.36% was realized by Coca-Cola.
Twelve trailing months earnings per share reached a value of $1.71. Last fiscal year, Coca-Cola paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.23, the P/S ratio is 3.75 and the P/B ratio is finally 5.71. The dividend yield amounts to 3.33%.
Stock Charts:
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| Long-Term Stock Price Chart of Coca-Cola (KO) |
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| Long-Term Dividend Payment History of Coca-Cola (KO) |
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| Long-Term Dividend Yield History of Coca-Cola (KO) |
Kimberly Clark -- Yield: 3.24%
Kimberly Clark (NYSE:KMB) employs 43,000 people, generates revenue of $19,724.00 million and has a net income of $1,399.00 million. The current market capitalization stands at $39.60 billion.Kimberly Clark’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,383.00 million. The EBITDA margin is 17.15% (the operating margin is 12.78% and the net profit margin 7.09%).
Financials: The total debt represents 45.27% of Kimberly Clark assets and the total debt in relation to the equity amounts to 964.06%. Due to the financial situation, a return on equity of 52.86% was realized by Kimberly Clark.
Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, Kimberly Clark paid $3.36 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 69.22, the P/S ratio is 2.01 and the P/B ratio is finally 54.47. The dividend yield amounts to 3.24%.
Stock Charts:
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| Long-Term Stock Price Chart of Kimberly Clark (KMB) |
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| Long-Term Dividend Payment History of Kimberly Clark (KMB) |
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| Long-Term Dividend Yield History of Kimberly Clark (KMB) |
Anheuser Busch Inbev -- Yield: 3.18%
Anheuser Busch Inbev (NYSE:BUD) employs 155,000 people, generates revenue of $47,063.00 million and has a net income of $11,302.00 million. The current market capitalization stands at $175.57 billion.Anheuser Busch Inbev’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,656.00 million. The EBITDA margin is 39.64% (the operating margin is 33.19% and the net profit margin 24.01%).
Financials: The total debt represents 35.86% of Anheuser Busch Inbev assets and the total debt in relation to the equity amounts to 102.30%. Due to the financial situation, a return on equity of 18.37% was realized by Anheuser Busch Inbev.
Twelve trailing months earnings per share reached a value of $5.79. Last fiscal year, Anheuser Busch Inbev paid $3.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.93, the P/S ratio is 3.73 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.18%.
Stock Charts:
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| Long-Term Stock Price Chart of Anheuser Busch Inbev (BUD) |
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| Long-Term Dividend Payment History of Anheuser Busch Inbev (BUD) |
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| Long-Term Dividend Yield History of Anheuser Busch Inbev (BUD) |
PepsiCo -- Yield: 3.01%
PepsiCo (NYSE:PEP) employs 271,000 people, generates revenue of $66,683.00 million and has a net income of $6,558.00 million. The current market capitalization stands at $137.31 billion.PepsiCo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,901.00 million. The EBITDA margin is 19.35% (the operating margin is 14.37% and the net profit margin 9.83%).
Financials: The total debt represents 40.98% of PepsiCo assets and the total debt in relation to the equity amounts to 165.71%. Due to the financial situation, a return on equity of 30.98% was realized by PepsiCo.
Twelve trailing months earnings per share reached a value of $4.33. Last fiscal year, PepsiCo paid $2.53 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.61, the P/S ratio is 2.06 and the P/B ratio is finally 7.91. The dividend yield amounts to 3.01%.
Stock Charts:
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| Long-Term Stock Price Chart of PepsiCo (PEP) |
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| Long-Term Dividend Payment History of PepsiCo (PEP) |
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| Long-Term Dividend Yield History of PepsiCo (PEP) |