By Sol Palha:We are going to take a look at five stocks today, but before we go any further, we would like to go over some key ratios that we feel investors should get a handle on before jumping into stocks that pay dividends.
Enterprise value is a combination of the market cap, debt, minority interests, preferred shares less total cash and cash equivalents. This provides a better picture because it is a more accurate representation of a company's value contrary to simply looking at the Market cap.
Levered free cash flow is the amount of cash available to stockholders after interest payments on debt are made. A company with a small amount of debt will only have to spend a modest amount of money on interest payments, which in turn means that there is more money to send to shareholders in the form of dividends and vice versa.
The payout ratio
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