Should Companies Tie Dividends to Cash Flow?

In a recent Barron’s interview, Goldman Sachs global co-head of single-stock research Jim Covello makes the case for variable  dividends that are contingent on business’s available cash flow. According to Covello, 121 of the 700 dividend-paying companies in the Russell 1000 Index have suspended or eliminated payouts this year, especially in such sectors as energy, consumer discretionary and industrials. Here are key takeaways from Covello’s comments: “This is a concept that I’ve actually been talking… Read More

Show Me the Money: Six Cash-Rich Stocks

A company’s free cash flow, defined as the amount of money generated from operations less capital expenditures, offers investors a clue as to how well a company can sustain its operations and, subsequently, build wealth for shareholders,” writes Validea CEO John Reese in a recent article for TheStreet. Reese outlines some of the cash flow-related metrics included in his guru-inspired investment strategies and offers the following high-scoring picks: Maiden Holdings (MHLD) provides reinsurance services to… Read More