Dividend-News
Daily dividend news for investors in dividend stocks
7 Large-Cap Dividend Stocks Undervalued By Levered Free Cash Flows
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Published Wed, 08 Feb 2012 02:53:45 -0500 on Seeking Alpha
Interested in stocks that pay dividend income? For ideas on how to start your search, we ran a screen you may find interesting. We screened large-cap companies (with market caps above $10 billion) that pay dividend yields above 2% and sustainable payout ratios below 50% for those that appear undervalued relative to levered free cash flow. Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm's value from all ownership sources: market cap, outstanding debt, and preferred shares. Companies with high ratios of levered free cash flow/enterprise value may be undervalued by the market. ‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬ We also created a price-weighted index of... Read more


