I hate it when one of my
stock holdings cut its dividends. Tesco did it recently and I will lose now 75 percent
of my income from the stake.
For sure, it’s not much because the stock has only a portfolio share of around one percent but I've bought this share in hopes to get a stable output or a rising long-term dividend with low taxation.
For sure, it’s not much because the stock has only a portfolio share of around one percent but I've bought this share in hopes to get a stable output or a rising long-term dividend with low taxation.
Recently I wrote
about stocks that have lower debt amounts on their balance sheets. I made this with thoughts in my mind to avoid a future dividend
cut.
Today I
will strengthen my criteria and tighten the focus on stocks with no debt and
high cash amounts. That's the highest level of safeness every investor could
reach.
I found the
graphic on US Today with some interesting stocks in terms of cash and debt (look at the end of this article).
The list shows 26 U.S. stocks with no debt! There are more available on the market but those are some of the biggest and you might know them.
The list shows 26 U.S. stocks with no debt! There are more available on the market but those are some of the biggest and you might know them.
Cash is king and
large capitalization too. I love big capitalized stocks because of their good business diversification. Those stocks have often a well diversified product portfolio
and great sales teams all over the world.
Big companies also have more money for research and development and offer more money and social benefits to the best talented people in the world.
Big companies also have more money for research and development and offer more money and social benefits to the best talented people in the world.
If one country or
currency suffers, a different one can eliminate the problems with sales growth.
No every problem can be solved so easy but investors have a better chance to make a good return.
No debt could also mean more money for shareholders (Dividends or Share Buybacks) or a higher growth.
The company can invest into the future by acquisitions or product investments.
In the end, everything
is a question of the ability of the management team; a good team can boost the
company while a bad head can bring them down.
Below are five of my favorite stocks with no debt and high cash mountains.
Below are five of my favorite stocks with no debt and high cash mountains.