{"id":1207,"date":"2023-11-02T17:12:57","date_gmt":"2023-11-02T17:12:57","guid":{"rendered":"https:\/\/kellyintel.com\/?p=1207"},"modified":"2024-01-26T15:52:12","modified_gmt":"2024-01-26T15:52:12","slug":"how-to-invest-in-free-cash-flow-yield","status":"publish","type":"post","link":"https:\/\/kellyintel.com\/how-to-invest-in-free-cash-flow-yield\/","title":{"rendered":"How to Invest in Free Cash Flow Yield"},"content":{"rendered":"
Free Cash Flow (\u201cFCF\u201d) Yield is one of the most important fundamental metrics indicating a firm\u2019s financial health. FCF Yield measures the amount of cash generated from the core operations of a company relative to its valuation.<\/p>\n
The Kelly US Cash Flow Dividend Leaders Index<\/a> (symbol: COWSETF Index<\/strong>) targets US companies with consistent dividend growth by screening for high free cash flow yields.<\/p>\n The COWSETF Index distinguishes itself by utilizing a Forward FCF Yield<\/em><\/strong> and<\/u> Trailing FCF Yield<\/em><\/strong> ranking system (rulebook<\/a>).<\/p>\n <\/p>\n High quality FCFY indexes need to incorporate both FCF Yields as they are inextricably linked.<\/p>\n The COWSETF Index system of incorporating forward FCF Yield can be a better measure of value and quality than other valuation metrics, including other high FCF Yield indexes. \u00a0COWSETF Index provides a more comprehensive and accurate snapshot of a company\u2019s potential profitability because of the forward look of a company\u2019s cash flow. Meanwhile, the trailing high FCF Yield reflects actual cash generated by a business and is less subject to accounting manipulation.<\/p>\n By coupling both trailing and forward, COWSETF Index\u2019s methodology demonstrates critical components on how to invest in free cash flow yield and dividends.<\/p>\n The three important aspects that should be adhered to before investing in a free cash flow strategy:<\/p>\n <\/p>\n <\/p>\n <\/p>\n Exposure to the COWSETF Index can be a differentiator within the core of an equity portfolio by capturing U.S.-domiciled companies with the highest \u2013 trailing and forward – free cash flow yields.<\/p>\n Tool for Diversification: <\/strong>COWSETF Index can be a complement to traditional equity core strategies.<\/p>\n Disclaimers:<\/strong><\/p>\n This document is for informational purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, any security. Additionally, the information herein is not intended to provide, and should not be relied upon for, legal advice or investment recommendations. You should make an independent investigation of the matters described herein, including consulting your own advisors on the matters discussed herein. In addition, certain information contained in this document has been obtained from published and non-published sources prepared by other parties, which in certain cases have not been updated through the date hereof.\u00a0 While such information is believed to be reliable for the purpose used in this document, such information has not been independently verified by Kelly Indexes LLC (\u201cKelly\u201d) and Kelly does not assume any responsibility for the accuracy or completeness of such information. Kelly Indexes LLC, its affiliates and their independent providers are not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. Charts, graphs, and graphics are provided for illustrative purposes only. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. All trademarks or registered trademarks are owned by their respective parties and Kelly makes no claims on them or their use.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" DOWNLOAD THIS REPORT HERE (PDF) Free Cash Flow (\u201cFCF\u201d) Yield is one of the most important fundamental metrics indicating a firm\u2019s financial health. FCF Yield measures the amount of cash generated from the core operations of a company relative to its valuation. The Kelly US Cash Flow Dividend Leaders Index (symbol: COWSETF Index) targets US […]<\/p>\n","protected":false},"author":4,"featured_media":1229,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,32],"tags":[],"yoast_head":"\nHow to Invest<\/strong><\/h3>\n
\n
\n
\n
How to Implement
\n<\/strong><\/h3>\n\n