Picking Retirement Stocks: Dividends vs. Free Cash Flow
Though it’s tempting to focus on a stock’s dividend payments in a world of low returns, a company’s free cash flow (FCF) could be a better metric for evaluating which stocks to hold in your retirement portfolio. Increasing free cash flow is a good sign for a company’s future earnings and share value and indicates that it can pay dividends to shareholders, in the case of dividend stocks.
Fontinelle, Amy, "Picking Retirement Stocks: Dividends vs. Free Cash Flow" (2016). In the News. 1451.