S&P 500 Companies That Can Afford to Pay Dividends--But Don't

For clients interested in generating income from their portfolios, these high-profile companies are not their best bet. The companies listed here are those from the S&P 500 that have the wherewithal to pay dividends – as measured by the companies with the most free cash flow this year – but have not paid any dividends to investors over the past year. Might that change? Watch this space.

Free cash flows are measured by a trailing-12 month figure as of Nov. 30, and all data is from Morningstar.

Bear in mind that there are other good uses for corporate mountains of cash that can benefit shareholders. Companies can expand, acquire or repurchase stock, among other moves. But if dividends are what your clients seek, based on recent precedent, they aren't likely to find them here. For those clients, we also recently highlighted the companies from the S&P 500 that paid the biggest dividend increases over the past three years

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