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Dividends First Cut Stocks

Stocks With Consistent Dividend Increases and Positive Free Cash Flow

This First Cut seeks out domestic, exchange-listed stocks that have consistently raised their annual dividend payment while maintaining positive free cash flow.

by John Bajkowski | September 2024

Investors seek out dividend-paying stocks as a steady source of portfolio income with the added benefit of downside protection during market downturns. This First Cut seeks out domestic, exchange-listed stocks that have consistently raised their annual dividend payment over the last seven years while maintaining positive free cash flow over each of the last seven years.

Free cash flow is calculated by examining cash flow from operations (measure of a firm’s ability to generate cash from day-to-day operations) and then subtracting capital expenditures (capex) and dividend payments. Companies passing this screen must also be currently paying a lower percentage of earnings as dividends (dividend payout ratio) than their seven-year average.

The 14 nonfinancial and 14 financial stocks with the highest dividend yields (annual dividend payment divided by price) and with a current dividend yield above their seven-year average yield made the First Cut. Financials are segmented from stocks in other sectors because their financial statements are not comparable with firms in other industries.

Stocks With Consistent Dividend Increases and Positive Free Cash Flow (Ranked by Dividend Yield)

Stock Investor Pro Screening Criteria

  Field: Operator: Factor: Compare to:
  Exchange Not Equal   Over the counter
And ADR/ADS Stock Is False    
And Country Contains   United States
And Free cash flow/share 12m >   0
And Free cash flow/share Y1 >   0
And Free cash flow/share Y2 >   0
And Free cash flow/share Y3 >   0
And Free cash flow/share Y4 >   0
And Free cash flow/share Y5 >   0
And Free cash flow/share Y6 >   0
And Free cash flow/share Y7 >   0
And Dividend, indicated >=   Dividend Y1
And Dividend 12m >=   Dividend Y1
And Dividend Y1 >   Dividend Y2
And Dividend Y2 >   Dividend Y3
And Dividend Y3 >   Dividend Y4
And Dividend Y4 >   Dividend Y5
And Dividend Y5 >   Dividend Y6
And Dividend Y6 >   Dividend Y7
And Payout Ratio 12m <   Payout - 7 year avg.
And Yield >   Yield-Average 7 years

Discussion

Robert B from VA posted almost 2 years ago:

Typo in third para: "with a current dividend yield below their seven-year average yield made the First Cut" should state current yield above their seven-year average.


ROBERT A from NC posted almost 2 years ago:

Interesting screen. Could be quite useful.


JEAN H from IL posted almost 2 years ago:

Robert B, the typo has been fixed. Thanks for letting us know.


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