The Globe and Mail attempts to identify Canadian companies that prioritize cash flow in its Tuesday, April 28, edition. The Globe's guest columnist Emily Halverson-Duncan writes in the Number Cruncher column that during periods of market turmoil, such as what we have been experiencing in 2020, investors are looking for companies that can withstand volatility without taking too big of a hit. Ms. Halverson-Duncan says one of the most important characteristics to consider is cash flow. She says companies that have excess cash on hand will naturally be in a better position to continue making payments on any outstanding debt, maintain dividends paid out to shareholders, or even use that cash to expand the business through new projects and acquisitions. Ms. Halverson-Duncan looked for Canadian stocks that have excess cash available as well as a good history of increasing operating cash flow. She sifted through 693 names. Her picks needed to have annual cash flow momentum, five-year cash-flow growth, and the latest four quarters of both operating and free cash flow to have positive values. She recommends Kirkland Lake Gold, North West Co., Torex Gold Resources, WSP Global and Constellation Software.
© 2020 Canjex Publishing Ltd. All rights reserved.