Free Cash Flow Yield Stocks. A good metric to measure a company’s ability to generate cash is free cash flow yield. For every $1000 you put into the bond, you earn 2% interest in a year, or $20.
The screen shows 40 stocks. It can also indicate that the company’s cash flow is not. Technically it is derived by subtracting.
Free cash flow is the amount of cash flow left over after all revenue and necessary spending by a company.
A high free cash flow yield usually means a company is in good shape to maintain or increase its dividend or ramp up capital investments. You can also combine other metrics such as dividend yield to. A high free cash flow yield usually means a company is in good shape to maintain or increase its dividend or ramp up capital investments. While there is no hard and fast rule that states what is considered an acceptable, good, or exceptional free cash flow yield, generally speaking, anything under four percent is cause for concern.
