5 Cash-Cow Stocks to Buy for a Turbulent Market
In times of rising economic uncertainty, cash is king. Therefore, today’s article focuses on cash-cow stocks and exchange-traded funds (ETFs) that invest in such shares. Businesses require cash to meet their obligations in good times and bad. Thus, free cash flow (FCF) offers a good gauge to measure a company’s ability to navigate headwinds, such as geopolitical tensions, trade wars and recessions. Analysts pay significant attention to companies with a high FCF, or cash-cow stocks. Those firms generate steady cash flows to grow their operations, which in turn may translate into reliable returns for shareholders. Such companies can increase their dividend payments or repurchase their own shares as well. In addition, they can decide to pay off debt. Research by FTSE Russell highlights , “The top 100 highest yielding free cash flow companies in the US large-cap Russell 1000 Index outperformed the broad index by nearly 13% in periods of rising rates and by nearly 3% in periods of falling rates between Dec. 31, 1991, and Sept. 28, 2018.” 7 of the Hottest ETFs to Buy Right Now Therefore, potential investors may want to pay close attention to companies that generate significant levels of cash.
5 Cash-Cow Stocks to Buy for a Turbulent Market
In times of rising economic uncertainty, cash is king. Therefore, today’s article focuses on cash-cow stocks and exchange-traded funds (ETFs) that invest in such shares. Businesses require cash to meet their obligations in good times and bad. Thus, free cash flow (FCF) offers a good gauge to measure a company’s ability to navigate headwinds, such as geopolitical tensions, trade wars and recessions. Analysts pay significant attention to companies with a high FCF, or cash-cow stocks. Those firms generate steady cash flows to grow their operations, which in turn may translate into reliable returns for shareholders. Such companies can increase their dividend payments or repurchase their own shares as well. In addition, they can decide to pay off debt. Research by FTSE Russell highlights , “The top 100 highest yielding free cash flow companies in the US large-cap Russell 1000 Index outperformed the broad index by nearly 13% in periods of rising rates and by nearly 3% in periods of falling rates between Dec. 31, 1991, and Sept. 28, 2018.” 7 of the Hottest ETFs to Buy Right Now Therefore, potential investors may want to pay close attention to companies that generate significant levels of cash.