This Dividend Stock Is Rolling in Cash. But Is It a Buy?
One of the primary metrics that many investors consider when evaluating a company and its stock is its cash position. How much cash does it have on hand, and how much free cash flow does it generate?
Generally speaking, the more cash a company has coming in, the more it will have available to pay down debt, invest in its growth, and maintain and increase its dividend payouts.
Consider, for example, Visa (NYSE: V). Visa has been one of the best and most consistent growth stocks on the market with an average annual return of about 26% over the past 10 years. It's also a growth stock that happens to pay out a dividend. While its dividend has a lower-than-average yield, Visa has raised its annual payout for 12 straight years and has plenty of cash to comfortably continue making raises.
Source Fool.com
