Investing
is great. You can spend money on stocks and if your bet goes wild you will make
a lot of money. That's a great dream for all of us and I can tell you that it's
possible to become an investment Pro.
I'm a guy
who looks steadily at stocks and try to find attractive investment stories and
cheap stocks in order to make a good return.
I'm not
short term focused; plan to hold most of my stocks over years and decades. Due
to my long investment horizon, I need good companies that grow over time their
business, pay me good dividends, and grow dividends as well.
But the
most important question is that the corporate can grow without taking new
investors on board. Those actions will grow outstanding shares in general and
bring pressure on earnings per share growth.
I look
for companies have generated high free cash flows, companies with a business
model that don't need much money to keep their operational business alive.
I've tried
to find some new ideas with an old screener who has a quick option; it’s called
the reinvestment rate. I don't know how they calculate this ratio but when I
sort the list of large with high margins by this ratio, companies with low
investment spending on their operational cash flow come first.
I talk
about companies with a high scalable business, stocks with the lowest need of
capital expenditures. First you might think about Facebook or all the great
tobacco companies. For sure those shares generate big free cash flows.
But there
are much more companies, I talk about technology stocks and money platforms.
The key is here the platform business. Each new customer doesn't cause new
costs and bring free cash into the corporate. That's a great idea of making
money.
The only
item to care about is market entry barriers. Can competitors easily enter and
push down margins? If yes, keep your fingers away of buy only at low multiples.
Below are seven
detailed stocks. I will follow up with 8 additional stocks. That's only a selection; there are much more companies available. Some of them pay no dividends other a low one but dividend is not the key.
Look at Part II here: These 8 Dividend Stocks Bubbling Cash Like Lava Gold Mines (Part II)
Most of the presented results come from the tech and financial space.
7 Dividend Stocks with strong free cashflows are...
Look at Part II here: These 8 Dividend Stocks Bubbling Cash Like Lava Gold Mines (Part II)
Most of the presented results come from the tech and financial space.
7 Dividend Stocks with strong free cashflows are...