Stockdi$$ector
Social Media
  • Home
  • Articles
  • Tips
  • About
  • Archives
    • 24/7 Wall Street
    • Amigobulls
    • GuruFocus
    • Motley Fool
    • Seeking Alpha
    • Talk Markets
    • Thoughts of the Day
  • Philosophy

Make Sure a Dividend is Solid

7/6/2016

 
When a company’s stock pays an enticing dividend yield, always make sure that it’s supported by free cash flow. Dividends not supported by free cash flow would need to come from external financing such as a stock sale or debt financing. This could prove detrimental to your publicly traded businesses over the long-term. I prefer to see companies pay out less than 50% of their free cash flow and retain the rest for other purposes.

Comments are closed.

    Author

    William Bias has been researching stocks since 1992 and has been a freelance writer since 2012. He employs a strategic business oriented approach to stock market investing.

    Archives

    September 2016
    August 2016
    July 2016
    June 2016
    May 2016

    Categories

    All

    RSS Feed


Any commentary is the opinion of the author. You should always do your own research. I AM NOT A FINANCIAL ADVISOR.

Articles
Tips
About
24/7 Wall Street Article Archive
Amigobulls Article Archive
Guru Focus Article Archive
Motley Fool Article Archive
Seeking Alpha Article Archive
TalkMarkets Article Archive
Thought of the Day Archive
Proudly powered by Weebly