Thursday, September 08, 2011

Perfect Stocks: High Cash No Debt High Yield Stocks

What would make a perfect stock? One feature that I look for is a stock that is debt free. It is difficult for a company to go out of business when it has no debt. Then I also prefer stocks that pay dividends. Dividends provide stability to the stocks and accelerate the return of capital. The other criteria I like to see is lots of cash. The more cash per share a company has compared to its stock price, the better. Cash is a great cushion during downturns. just updated its free list of High Cash No Debt High Yield Stocks, and includes more than 20 companies, showing the stock symbol, market cap, forward price-to-earnings ratio, cash per share, yield, and cash per share as a percentage of stock price.

An example is Cato Corp. (CATO), which is a North Carolina based specialty retailer of fashion apparel and accessories in the southeastern US. This debt free company has $9 in cash per share representing about 36% of the recent price per share. On top of that, the current yield is 3.8% after the company increased the dividend rate by 16.5%. Earnings for the latest quarter were up 13% on a slight increase in revenues.

Garmin Ltd. (GRMN) is a $5.85 billion market cap debt free company that makes global positioning systems, also known as GPS products. The stock sports a 5% yield after doubling its payout rate over last year. It trades at 15.4 times forward earnings. It has a decent cushion of $7.63 in cash per share.

Superior Industries International, Inc. (SUP), a manufacturer of aluminum road wheels, pays a yield of 4% and carries a forward price to earnings ratio of 10.8. The stock has a substantial $5.51 in cash per share and has no debt.

Weis Markets (WMK), a retail supermarket chain, which is another debt free company, has $5.17 in cash per share, a PE ratio of 15, and a yield of 3.1%.

To see the entire list of High Cash No Debt High Yield Stocks, which you can sort, change, and update, go to

Disclosure: Author does not own any of the above.


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