If a company has enough free cash flow left over to pay huge dividends to shareholders, it makes the stock very attractive. In other words, an FCF-heavy company does not have to borrow money or sell assets to pay dividends. I wanted to find five stocks with dividend yields greater than 7% but whose dividends are financed solely from the company’s own free cash flow. These stocks do not have to rely on other sources of cash to pay those high yields.
Advanced Emissions Solutions (NASDAQ:ADES) is a small-cap stock ($201 million market cap) that has a very high dividend yield (9.28%) and an even higher FCF yield (16.5%). Meredith Corporation (NYSE:MDP) is the number-one magazine operator in the U.S. It publishes People, In-Style, Better Homes and Gardens and Martha Stewart Living. It also owns 17 TV stations. Ladder Capital (NASDAQ:LADR) is a mortgage REIT headquartered in New York City. It originates first-mortgage commercial real estate loans and invests in U.S. Agency securities. CVR Energy (NYSE:CVI) refines oil and makes gasoline, diesel, and nitrogen/ammonia fertilizer through several Midwest refineries that it owns. Newtek Business Services (NASDAQ:NEWT) is a business development company with a high dividend yield. But it acts as a sort of investment bank in that it trades and securitizes the loans it originates.
Source: InvestorPlace
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Posted by D4L | Tuesday, February 04, 2020 | ArticleLinks | 0 comments »________________________________________________________________
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