It can be exhilarating to chase the stock of the moment. However, a common mistake, some investors make when trading these stocks is ignoring the company’s cash situation.  

There are a lot of growth stocks that aren’t profitable. Some aren’t even generating any revenue. It’s hard enough for traders to profit from these stocks, but as an investor, these stocks frequently bring elevated volatility and risk to your portfolio. 

That means that the stock’s price movement is grounded in the greater fool theory. The idea that there will always be one more fool that’s willing to buy your shares at a higher price. 

Maybe that has been you in the past. It’s okay; most investors have paid that tax at one point or another. 

It also may mean you’re looking for ways to invest more profitably. And one way to do that is by investing in dividend stocks. To some investors, dividend stocks sound boring, but that’s only because you may be overlooking their free cash flow.  

Free cash flow is a measurement of the cash a company generates after accounting for capital expenditures to support its operations. And one way that companies can use part of that free cash flow is to reward investors with share buybacks and/or dividends.  

That’s why we’ve made free cash flow the focus of this special presentation. We’re highlighting seven companies that continue to increase their dividend while expanding the growth of the underlying business. Not surprisingly, these are some of the companies that have a history of generating strong free cash flow regardless of what’s happening in the economy.