The market looks more overvalued each week, a trend in place for quite some time. Fundamentals do not seem to matter, and stocks continue to rise no matter what happens. But, stocks can’t go up and defy cash flows forever. Eventually, fundamentals matter, and overvalued stocks crash back to realistic valuations.
So, how can you make sound investments in this volatile market? One way to find your safe haven is to find companies that pay high dividends consistently and generate the free cash flow (FCF) needed to make those dividend payments.