When investors look for dividend stocks, they must assess the sustainability, or “safety” of the yield they’re seeking. We know from our Safest Dividend Yields Model Portfolio that companies with strong free cash flow provide higher quality and safer yields because the firm generates enough cash to support the dividend. A high dividend can disappear in an instant if the company paying it doesn’t generate enough cash flow.Not a Member Yet? You need a Gold Membership or higher to view the content on this page.
Start Your Gold Membership Today | New Constructs Member Login