1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (981) 

5 Debt-Free Dividend Stocks With High Cash On Hand

I hate it when one of my stock holdings cut its dividends. Tesco did it recently, and I will lose now 75% of my income from the stake. For sure, it’s not much because the stock has only a portfolio share of around one percent, but I've bought this share in hopes of getting a stable output or a rising long-term dividend with low taxation.

Recently I wrote about stocks that have lower debt amounts on their balance sheets in an effort to avoid a future dividend cut. Today I will strengthen my criteria and tighten the focus on stocks with no debt and high cash amounts. That's the highest level of safety investors can reach.

I discovered a list of 26 U.S. stocks with no debt but high therefore cash mountains on their balance sheets. There are more available on the market, but these are some of the biggest and you might know them.

Cash is king and large capitalization, too. I love large-cap stocks because of their good business diversification. Those stocks have often a well-diversified product portfolio and great sales teams all over the world. Big companies also have more money for research and development and offer more money and social benefits to the best talented people in the world. If one country or currency suffers, a different one can eliminate the problems with sales growth. No every problem can be solved so easily, but investors have a better chance to make a good return.

No debt could also mean more money for shareholders (dividends or share buybacks) or a higher growth. The company can invest in the future by acquisitions or product investments. In the end, everything is a question of the ability of the management team; a good team can boost the company while a bad one can bring them down.

Below are five of my favorite stocks with no debt and lots of cash.

#1 Garmin (NASDAQ:GRMN) has a market capitalization of $10.46 billion. The company employs 10,086 people, generates revenue of $2.631 billion and has a net income of $612.41 million. Garmin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $652.84 million. The EBITDA margin is 24.81 percent (the operating margin is 21.81 percent and the net profit margin 23.27 percent).

Financials: The total debt represents 0.00 percent of Garmin’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 17.03 percent was realized by Garmin. Twelve trailing months earnings per share reached a value of $3.33. Last fiscal year, Garmin paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: the P/E ratio is 16.31, the P/S ratio is 3.98 and the P/B ratio is 2.90. The dividend yield amounts to 3.53 percent and the beta ratio has a value of 1.07.

Check out #2-#5 here: 5 Top Dividend Stocks With No Debt But High Cash On Balace Sheet

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by Dividend

User Generated Screeners

pascal.van.garsseHigh FCF-M2
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat