In a market where earnings can be volatile and accounting metrics sometimes paint an incomplete picture, free cash flow offers a more grounded view of a company’s financial strength. High free cash flow yield, in particular, signals that a company is generating substantial cash relative to its market value, which can indicate both undervaluation and strong operational efficiency.
Investors often look to free cash flow yield as a measure of how much cash a business is returning or could return to shareholders through dividends, buybacks or debt reduction. A high free cash flow yield can act as a margin of safety, especially during periods of economic uncertainty when steady cash generation becomes even more valuable.
The following stocks stand out for delivering high free cash flow yields today, making them worthy candidates for investors looking to build a durable and cash-rich portfolio for the year ahead.
| Company Name (Ticker) | P/E Ratio | Analyst Upside |
| Scorpio Tankers (STNG) | 7 | 41% |
| The Andersons (ANDE) | 13 | 31% |
| Teekay Tankers (TNK) | 7 | 20% |
| Freeport-McMoRan (FCX) | 19 | 19% |
| Valero Energy Corporation (VLO) | 14 | 14% |
| ConocoPhillips (COP) | 16 | 12% |
| Qualcomm (QCOM) | 13 | 12% |
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Scorpio Tankers (STNG)
Scorpio Tankers is a leading shipping company specializing in the transportation of refined petroleum products such as gasoline, diesel, and jet fuel. The company operates a large fleet of modern product tankers and benefits from demand driven by global fuel consumption.
However, the company has recently faced a cyclical downturn, with revenue decreasing by 38.4% in the most recent quarter due to lower charter rates. Despite this, Scorpio Tankers has maintained profitability, reporting a return on equity of approximately 15.4%.
The company offers a forward dividend yield of around 3.6% and has been executing significant share repurchases, including the recent completion of a large buyback program, reflecting confidence in its financial position. While the tanker industry is highly cyclical, the company’s young fleet and strong cash flows make it a compelling option for investors looking for exposure to energy logistics.
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The Andersons (ANDE)
The Andersons is a diversified agribusiness company involved in grain trading, plant nutrient production, and renewable fuel services. The company operates across several core segments including Trade, Nutrient & Industrial, and Rail.
While it has recently faced a revenue decline of -6.66% year-over-year on a trailing twelve-month basis, it has benefited from increased grain merchandising volumes and strong demand for ethanol and crop nutrients in some periods. The company’s trailing return on equity is around 8.11%, supported by consistent operating cash flow.
Andersons pays a dividend with a forward yield of about 2.16% and has a record of 27 consecutive years of dividend increases. The combination of diversified revenue streams, stable performance in agricultural markets, and disciplined financial management positions The Andersons as a stable investment in the agribusiness sector.
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Teekay Tankers (TNK)
Teekay Tankers is a major crude oil shipping company that owns and operates a fleet of mid-sized oil tankers. While the company has seen strong performance in recent years, it has experienced a revenue decline on a trailing twelve-month basis. Its return on equity is around 22.98%, reflecting strong profitability from its recent operations.
Contrary to a lack of payout, Teekay Tankers pays a regular quarterly dividend and has offered special dividends, with a current forward dividend yield of approximately 2.25%. While earnings can be volatile depending on oil demand and shipping cycles, the company’s strong financial performance and leading position in the crude tanker segment make it a compelling option for investors seeking exposure to cyclical upside in global energy transport.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
