Investing Club mailbag: How to tell if a company will keep paying its dividend

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Fresh cash flow is a key metric for investors and analysts. Here's how to calculate it to use in your investing strategy.

How do we figure out free cash flow and how can we tell if a company can continue to pay its dividend. -David E. This is a great question and fortunately a pretty straightforward one to answer using some quick and simple math. Free cash flow is a popular metric for analysts and investors because it shows how much money a company can give back to shareholders.

Pampers Diapers, which are manufactured by Procter & Gamble, are displayed in an Associated Supermarket in New York.How do we figure out free cash flow and how can we tell if a company can continue to pay its dividend.

 

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