First, in any well diversified portfolio, you likely will still have some dividend-paying stocks generating cash.
Some of those businesses, particularly the agricultural exporters, have benefited from devaluation, and are still generating cash.
The issue, it would seem, is that companies are generating cash far faster than they can spend it.
FORBES: Big Companies Are Throwing Off Cash Faster Than They Can Spend It
Beyond superior total return prospects, there are other benefits to making sure that your cash is generating cash in turn.
He also likes finished software products with at least one customer, so he can start generating cash in a hurry.
Expect the activity to continue as long as companies keep generating cash faster than they can effectively make use of it.
FORBES: Big Companies Are Throwing Off Cash Faster Than They Can Spend It
In some cases, they are not even generating cash at all.
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Maintaining and upgrading existing lines is costly especially as they are spread out through many rural areas, and without the wireless business generating cash flow it is far more difficult.
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Both men have a reputation for paring costs and for pouncing on under-valued companies, which they then turn into machines for generating cash with which to buy yet more under-performing assets.
What it will (generally) deliver, however, is a universe of companies that can reasonably be expected to continue generating cash flows and increasing the amount of cash they return to their shareholders.
It is on the back of its about 80 million strong subscriber base that RIM has been able to continue generating cash through steady high-margin carrier fees despite reporting net losses for three quarters straight.
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The company might be generating cash flow but many investors like to see management pay this cash to shareholders and many investors take the dividend policy into consideration before buying stocks, especially in consumer related sectors.
And then we have the third bucket that is the income-producing assets, which is designed to refill those buckets and replenish them over time, so that we are generating cash for those distributions from income, and not necessarily having to sell securities to generate that distribution cash.
Are profitable companies generating consistent cash flow, reducing expenses, and maintaining an orderly balance sheet?
The company was still generating decent cash flow, cutting costs and paying out a nearly 7% dividend yield.
"If we are not generating enough cash flows, then we are not going to invest in those areas, " he said.
But Solo hasn't been generating enough cash to cover its debt payments.
It is generating enormous cash flows, pays a 4.5% dividend (which it just raised), and will be debt-free in the not too distant future.
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Groupon is generating little cash and is up to its same old balance sheet tricks that it employed at the time of its IPO.
Chapter 11 also provides an expedited process for selling assets, generating additional cash for the company and giving it more flexibility to restructure its operations.
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After troubles generating enough cash from that business, the company later shut down its free service, laid off some staff, and moved to a paid model.
The French carmaker's pledge to focus on generating positive cash flow this year cheered investors on Thursday, even as it reported a 31.0% decline in first-quarter sales.
"Ergen is generating more cash flow than Hughes and has gained market share in every quarter for the last year and a half, " says SG Cowen analyst Tom Watts.
Despite tough market conditions, the carmaker said it still expects to meet its target of 55 million units sold in 2009 as it makes generating positive cash flow its priority.
While millions of American homes are under water because their value has fallen below the amount owed on them, most commercial buildings are generating enough cash to pay off their loans.
The market has written RIM off to some extent but the core business is still generating nice cash flow and the valuation has gotten to the point that you may want to give RIM another look.
While financial stocks have gotten all the attention this year as the place to be for value, Swaim says Advisory Research sees more opportunity in industrial assets in the U.S. He argues these companies are generating higher cash flow.
Back in January, General Motors Vice Chairman Bob Lutz told Forbes a 2010 IPO was a possibility, but only after a laundry list of criteria were checked off, including turning a profit, generating solid cash flow and having a compelling story to tell investors.
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