High free cash flow yield stocks represent companies that generate substantial cash relative to their market value, creating several compelling advantages for investors. These companies typically demonstrate strong operational efficiency and have proven their ability to convert revenue into actual cash flow after accounting for capital expenditures and working capital needs. This financial strength often provides companies with greater flexibility to fund growth initiatives, pay down debt, or return value to shareholders through dividends and share buybacks—all without relying on external financing.
Moreover, high free cash flow yield stocks tend to exhibit defensive characteristics during market downturns, as their robust cash generation provides a buffer against economic uncertainties. These companies are often better positioned to maintain their operations and financial commitments even when business conditions deteriorate. Additionally, they frequently trade at more attractive valuations compared to their growth-focused counterparts, potentially offering better downside protection and the opportunity for multiple expansion if market sentiment shifts. This combination of financial resilience and value characteristics makes them particularly attractive to value investors and those seeking more stable, income-generating investments in their portfolios.
Here are the top 10 most fundamentally sound high free cash flow yield stocks using our guru models as of January 2025.
| Ticker | Company Name | Free Cash Flow Yield | Price | Market Cap ($mil) | P/E Ratio | Price/Sales | Relative Strength | Price/Book | Price/Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|---|
| FSUN | FirstSun Capital Bancorp | 19.9% | $39.70 | $1,098 | 13.0 | 2.9 | 71 | 1.1 | 11.7 | 3.5% |
| UBS | UBS Group AG | 19.7% | $30.69 | $106,162 | 35.7 | 2.1 | 52 | 1.1 | 16.6 | 2.8% |
| SBS | Basic Sanitation Company of the State of São Paulo (ADR) | 19.7% | $14.41 | $9,739 | 6.6 | 1.7 | 48 | 1.6 | 4.9 | 4.2% |
| SPNT | SiriusPoint Ltd | 19.4% | $14.22 | $2,302 | 8.8 | 0.8 | 74 | 0.9 | 7.3 | 0.0% |
| QFIN | Qifu Technology Inc – ADR | 19.2% | $38.18 | $5,928 | 7.9 | 2.5 | 94 | 1.9 | 35.9 | 0.0% |
| ATKR | Atkore Inc | 19.0% | $83.37 | $2,895 | 6.5 | 0.9 | 23 | 1.9 | 4.9 | 0.0% |
| STT | State Street Corp | 18.9% | $98.58 | $28,899 | 15.6 | 2.3 | 77 | 1.3 | 10.4 | 2.4% |
| SIGI | Selective Insurance Group Inc | 18.9% | $93.82 | $5,704 | 25.3 | 1.2 | 48 | 1.9 | 21.9 | 1.3% |
| ACT | Enact Holdings Inc | 18.7% | $32.36 | $4,970 | 7.5 | 4.2 | 67 | 1.0 | 13.4 | 1.8% |
| ACGL | Arch Capital Group Ltd. | 18.4% | $92.34 | $34,742 | 6.2 | 2.1 | 79 | 1.6 | 6.2 |
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