But often we see earnings that are no earnings. The cash flow is often higher or lower and the need for capital expenditures makes it more complicated to evaluate the true earnings for return orientated investors.
A High free cash flow can be used for so many interesting things like
organic growth, merger and acquisitions or even buybacks and special dividends.
Attached I've compiled a few stocks that offer a free cash flow yield
over 5 percent. That’s a good initial yield in my view.
AT&T -- Yield: 4.96%
AT&T (NYSE:T) employs 281,450 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $231.63 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49,599.00 million. The EBITDA margin is 33.79% (the operating margin is 16.88% and the net profit margin 9.32%).
Financials: The total debt represents 31.33% of AT&T assets and the total debt in relation to the equity amounts to 102.84%. Due to the financial situation, a return on equity of 12.57% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, AT&T paid $1.89 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.73, the P/S ratio is 1.62 and the P/B ratio is finally 1.94. The dividend yield amounts to 4.96%.
Stock Charts:
 |
| Long-Term Stock Price Chart of AT&T (T) |
 |
| Long-Term Dividend Payment History of AT&T (T) |
 |
| Long-Term Dividend Yield History of AT&T (T) |
GameStop -- Yield: 4.50%
GameStop (NYSE:GME) employs 20,000 people, generates revenue of $9,363.80 million and has a net income of $402.80 million. The current market capitalization stands at $3.40 billion.GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $812.60 million. The EBITDA margin is 8.68% (the operating margin is 6.92% and the net profit margin 4.30%).
Financials: The total debt represents 8.08% of GameStop assets and the total debt in relation to the equity amounts to 16.84%. Due to the financial situation, a return on equity of 19.42% was realized by GameStop.
Twelve trailing months earnings per share reached a value of $3.80. Last fiscal year, GameStop paid $1.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.50, the P/S ratio is 0.36 and the P/B ratio is finally 1.63. The dividend yield amounts to 4.50%.
Stock Charts:
 |
| Long-Term Stock Price Chart of GameStop (GME) |
 |
| Long-Term Dividend Payment History of GameStop (GME) |
 |
| Long-Term Dividend Yield History of GameStop (GME) |
Ford Motor -- Yield: 4.40%
Ford Motor (NYSE:F) employs 199,000 people, generates revenue of $149,558.00 million and has a net income of $7,371.00 million. The current market capitalization stands at $55.16 billion.Ford Motor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,188.00 million. The EBITDA margin is 10.82% (the operating margin is 5.11% and the net profit margin 4.93%).
Financials: The total debt represents 59.07% of Ford Motor assets and the total debt in relation to the equity amounts to 463.84%. Due to the financial situation, a return on equity of 27.78% was realized by Ford Motor.
Twelve trailing months earnings per share reached a value of $1.84. Last fiscal year, Ford Motor paid $0.60 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.41, the P/S ratio is 0.36 and the P/B ratio is finally 1.92. The dividend yield amounts to 4.40%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Ford Motor (F) |
 |
| Long-Term Dividend Payment History of Ford Motor (F) |
 |
| Long-Term Dividend Yield History of Ford Motor (F) |
Kohl's Corporation -- Yield: 4.34%
Kohl's Corporation (NYSE:KSS) employs 32,000 people, generates revenue of $19,204.00 million and has a net income of $673.00 million. The current market capitalization stands at $8.65 billion.Kohl's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,487.00 million. The EBITDA margin is 12.95% (the operating margin is 7.21% and the net profit margin 3.50%).
Financials: The total debt represents 34.60% of Kohl's Corporation assets and the total debt in relation to the equity amounts to 85.74%. Due to the financial situation, a return on equity of 11.72% was realized by Kohl's Corporation.
Twelve trailing months earnings per share reached a value of $3.48. Last fiscal year, Kohl's Corporation paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.06, the P/S ratio is 0.44 and the P/B ratio is finally 1.56. The dividend yield amounts to 4.34%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Kohl's Corporation (KSS) |
 |
| Long-Term Dividend Payment History of Kohl's Corporation (KSS) |
 |
| Long-Term Dividend Yield History of Kohl's Corporation (KSS) |
Gap -- Yield: 3.82%
Gap (NYSE:GPS) employs 141,000 people, generates revenue of $15,797.00 million and has a net income of $920.00 million. The current market capitalization stands at $9.53 billion.Gap’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,154.00 million. The EBITDA margin is 13.64% (the operating margin is 9.65% and the net profit margin 5.82%).
Financials: The total debt represents 23.16% of Gap assets and the total debt in relation to the equity amounts to 68.02%. Due to the financial situation, a return on equity of 33.29% was realized by Gap.
Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, Gap paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.71, the P/S ratio is 0.61 and the P/B ratio is finally 3.75. The dividend yield amounts to 3.82%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Gap (GPS) |
 |
| Long-Term Dividend Payment History of Gap (GPS) |
 |
| Long-Term Dividend Yield History of Gap (GPS) |
AbbVie -- Yield: 3.77%
AbbVie (NYSE:ABBV) employs 28,000 people, generates revenue of $22,859.00 million and has a net income of $5,144.00 million. The current market capitalization stands at $99.81 billion.AbbVie’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,523.00 million. The EBITDA margin is 37.29% (the operating margin is 32.97% and the net profit margin 22.50%).
Financials: The total debt represents 59.70% of AbbVie assets and the total debt in relation to the equity amounts to 802.81%. Due to the financial situation, a return on equity of 180.90% was realized by AbbVie.
Twelve trailing months earnings per share reached a value of $3.14. Last fiscal year, AbbVie paid $2.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.55, the P/S ratio is 4.28 and the P/B ratio is finally 24.68. The dividend yield amounts to 3.77%.
Stock Charts:
 |
| Long-Term Stock Price Chart of AbbVie (ABBV) |
 |
| Long-Term Dividend Payment History of AbbVie (ABBV) |
 |
| Long-Term Dividend Yield History of AbbVie (ABBV) |
Cisco Systems -- Yield: 3.66%
Cisco Systems (NASDAQ:CSCO) employs 71,833 people, generates revenue of $49,161.00 million and has a net income of $8,981.00 million. The current market capitalization stands at $142.66 billion.Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,696.00 million. The EBITDA margin is 27.86% (the operating margin is 21.91% and the net profit margin 18.27%).
Financials: The total debt represents 22.34% of Cisco Systems assets and the total debt in relation to the equity amounts to 42.47%. Due to the financial situation, a return on equity of 15.44% was realized by Cisco Systems.
Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, Cisco Systems paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.99, the P/S ratio is 2.91 and the P/B ratio is finally 2.42. The dividend yield amounts to 3.66%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Cisco Systems (CSCO) |
 |
| Long-Term Dividend Payment History of Cisco Systems (CSCO) |
 |
| Long-Term Dividend Yield History of Cisco Systems (CSCO) |
Pfizer -- Yield: 3.61%
Pfizer (NYSE:PFE) employs 97,900 people, generates revenue of $48,851.00 million and has a net income of $6,974.00 million. The current market capitalization stands at $207.88 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,788.00 million. The EBITDA margin is 38.46% (the operating margin is 21.14% and the net profit margin 14.28%).
Financials: The total debt represents 23.28% of Pfizer assets and the total debt in relation to the equity amounts to 60.23%. Due to the financial situation, a return on equity of 10.22% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.11. Last fiscal year, Pfizer paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.89, the P/S ratio is 4.21 and the P/B ratio is finally 3.17. The dividend yield amounts to 3.61%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Pfizer (PFE) |
 |
| Long-Term Dividend Payment History of Pfizer (PFE) |
 |
| Long-Term Dividend Yield History of Pfizer (PFE) |
 |
| 20 Stocks With A Free Cashflow Inital Yield Over 5% (click to enlarge) |
