Passive income investors should want to know whether a business has a sufficient inflow of capital to cover its expenditures and then pay dividends. A simple, helpful metric for this is free cash flow (FCF), which is calculated as a company’s operating cash flow minus its capital expenditures.
It’s a good thing when a business’s FCF compares favorably to its peers; it’s even better when that company takes its leftover capital and rewards the shareholders with attractive dividend payments. Three companies stand out in this regard, and now we can shine a spotlight on several FCF standouts that offer delectable dividends in 2025.
This post originally appeared at 24/7 Wall St.