10 Stocks Undervalued Relative to Free Cash Flow Releasing Earnings Next Week

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Includes: ABT, INTC, JNJ, LLY, MXIM, NOK, NVS, PM, VZ, WSO
by: Kapitall

If you are an equity investor looking to boost your dividend income, the following list might provide you with an interesting starting point for your own analysis.

To compile this list, we focused on companies with the following characteristics:

  • Releasing earnings next week
  • Yielding over 3%
  • Levered Free Cash Flow to Current Market Cap above 5%

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Please Note: Levered free cash flow is the free cash flow available to the company after paying interest on outstanding debt. It is a measure of the cash flow that is truly available to the company.

List sorted by relative size of levered free cash-flow.

1. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $33.17B. Dividend yield at 6.25%. The company is scheduled to release earnings on Thursday, April 21. TTM levered free cash flow at 6.44B, which represents about 19.42% of the company's market cap. Offers a good dividend, and appears to have good liquidity to back it up - current ratio at 1.55, and quick ratio at 1.4. The stock has lost 40.61% over the last year.



2. Verizon Communications Inc. (NYSE:VZ): Telecom Services Industry. Market cap of $105.39B. Dividend yield at 5.18%. The company is scheduled to release earnings on Thursday, April 21. TTM levered free cash flow at 15.21B, which represents about 14.43% of the company's market cap. Relatively low correlation to the market (beta = 0.68), which may be appealing to risk averse investors. The stock has gained 33.71% over the last year.



3. Eli Lilly & Co. (NYSE:LLY): Drug Manufacturer. Market cap of $41.49B. Dividend yield at 5.47%. The company is scheduled to release earnings on Monday, April 18. TTM levered free cash flow at 4.54B, which represents about 10.94% of the company's market cap. Current ratio at 2.09, and quick ratio at 1.74. The stock has gained 3.46% over the last year.



4. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $106.41B. Dividend yield at 3.67%. The company is scheduled to release earnings on Tuesday, April 19. TTM levered free cash flow at 8.54B, which represents about 8.03% of the company's market cap. PEG ratio at 0.85. The stock has lost 13.37% over the last year.

5. Philip Morris International, Inc. (NYSE:PM):
Cigarettes Industry. Market cap of $118.24B. Dividend yield at 3.88%. The company is scheduled to release earnings on Thursday, April 21. TTM levered free cash flow at 7.97B, which represents about 6.74% of the company's market cap. The stock has gained 34.67% over the last year.

6. Johnson & Johnson (NYSE:JNJ): Drug Manufacturer. Market cap of $164.25B. Dividend yield at 3.6%. The company is scheduled to release earnings on Tuesday, April 19. TTM levered free cash flow at 11.07B, which represents about 6.74% of the company's market cap. Current ratio at 2.05, and quick ratio at 1.82. The stock has lost 5.11% over the last year.

7. Abbott Laboratories (NYSE:ABT): Drug Manufacturer. Market cap of $78.97B. Dividend yield at 3.76%. The company is scheduled to release earnings on Wednesday, April 20. TTM levered free cash flow at 5.15B, which represents about 6.52% of the company's market cap. The stock has gained 0.2% over the last year.

8. Novartis AG (NYSE:NVS):
Drug Manufacturer. Market cap of $126.52B. Dividend yield at 4.28%. The company is scheduled to release earnings on Tuesday, April 19. TTM levered free cash flow at 8.05B, which represents about 6.36% of the company's market cap. The stock has gained 7.51% over the last year.

9. Watsco Inc. (NYSE:WSO): Electronics Wholesale Industry. Market cap of $2.29B. Dividend yield at 3.24%. The company is scheduled to release earnings on Monday, April 18. TTM levered free cash flow at 131.51M, which represents about 5.74% of the company's market cap. The stock is a short squeeze candidate, with a short float at 9.8% (equivalent to 9.0 days of average volume). The stock has gained 19.9% over the last year.

10. Maxim Integrated Products Inc. (NASDAQ:MXIM):
Semiconductor Industry. Market cap of $7.31B. Dividend yield at 3.41%. The company is scheduled to release earnings on Thursday, April 21. TTM levered free cash flow at 414.40M, which represents about 5.67% of the company's market cap. The stock has gained 21.3% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.