In this article, we will take a look at the 12 Stocks From Companies Generating High Cash Flow.
Cash flow has long been an important metric for stock investors. Companies that generate strong cash flow are often in a better position to maintain and grow their operations while continuing to pay steady or increasing dividends.
A report from S&P Dow Jones Indices divided the S&P 500 universe into quintiles based on free cash flow yield. The findings showed that top-quintile stocks delivered an annualized return of 15.7% between December 1990 and June 2017. That was higher than all other quintiles and outperformed the broader market by an average of 3.6%.
The bottom two quintiles also posted respectable results, with average annualized returns of 11.0% and 8.6%, respectively. Even so, both trailed the overall equity market.
In the current market, the technology sector remains the leader in cash flow generation. CNBC reported that Bank of America analysts expect sales and free cash flow across the sector to improve in 2026, helping support ongoing spending. Tech CEOs continue to express confidence in their artificial intelligence investments. Signs of monetization, including rising cloud revenue, have started to appear in recent earnings reports. Still, many investors remain skeptical about the pace of spending.
The cost of the AI buildout has been substantial and continues to draw attention. Even so, analysts say they are seeing investments translate into revenue growth, while valuations and market capitalizations continue to climb.
Given this, we will take a look at some of the best stocks with cash flow generation.
Photo by nathan dumlao on Unsplash
Our Methodology:
For this list, we screened for companies with market caps above $10 billion and free cash flow yield above 5%. From there, we identified companies with free cash flow (ttm) of at least $1 billion. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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12. Target Corporation (NYSE:TGT)
Free Cash Flow Yield: 5.01%
Free Cash Flow (TTM): $3.14 Billion
On June 11, Gordon Haskett maintained its Buy rating on Target Corporation (NYSE:TGT) and kept its $160 price target. Following a meeting with senior leadership, the firm said Target’s turnaround efforts appear increasingly credible. Analysts pointed to the company’s renewed focus on its “Expect More” value proposition, operational changes already underway, and improving fundamentals supported by easier comparisons and planned assortment enhancements. Gordon Haskett also noted similarities between Target’s progress and other successful retail turnaround stories.
On June 12, Guggenheim raised its price recommendation on TGT to $145 from $140. It reiterated a Buy rating on the shares. The update followed a management meeting with CEO Michael Fiddelke and CFO Jim Lee, which focused on improving execution of a clear go-to-market strategy centered on “specialization at scale.” The analyst noted that Target’s 35% year-to-date rally “suggests the easy money has been made,” though continued operational progress could help attract longer-term investors.
Target Corporation is a general merchandise retailer that sells products through its stores and digital channels. The company offers its customers, referred to as guests, a range of differentiated merchandise and everyday essentials at discounted prices.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Free Cash Flow Yield: 5.54%
Free Cash Flow (TTM): $9.59 Billion
On June 15, Reuters reported that QUALCOMM Incorporated (NASDAQ:QCOM) is in talks to acquire AI chip startup Tenstorrent. The deal would be valued between $8 billion and $10 billion, according to a report by The Information that cited a person familiar with the matter. Qualcomm shares fell about 1% in extended trading following the report.
The discussions are ongoing, and the deal value could change. The report also noted that negotiations could still fall through. It remains unclear whether the proposed price includes performance-based milestone payments, a structure that has been used in previous acquisitions of chip startups.
Qualcomm and Tenstorrent did not immediately respond to Reuters’ requests for comment, and Reuters was unable to independently verify the report.
Founded in 2016, Tenstorrent is led by Jim Keller, a former Apple chip designer who also oversaw Tesla’s efforts to develop a chip for autonomous driving. The company develops accelerators used to train AI models and run AI applications.
QUALCOMM Incorporated develops and commercializes foundational technologies for the wireless industry. Its portfolio includes third-generation (3G), fourth-generation (4G), and fifth-generation (5G) wireless connectivity, as well as high-performance and low-power computing technologies, including on-device artificial intelligence.
10. American Express Company (NYSE:AXP)
Free Cash Flow Yield: 6.16%
Free Cash Flow (TTM): $14.3 Billion
On June 15, Reuters reported that American Express Company (NYSE:AXP) had agreed to acquire restaurant reservation platform TheFork from Tripadvisor. The all-cash transaction is valued at $700 million. The sale comes after activist investor Starboard Value urged Tripadvisor last October to divest TheFork.
Tripadvisor has faced challenges recovering from disruptions caused by the pandemic while also competing with major travel platforms such as Booking Holdings and Airbnb. According to the company, the transaction will support its ongoing transformation and allow it to place greater emphasis on its experience-focused strategy.
For American Express, the acquisition will significantly expand its dining footprint, increasing its network to around 75,000 bookable restaurants. The deal is also expected to strengthen the company’s international operations, which have been one of its fastest-growing business segments for years. It follows American Express’ earlier acquisitions of dining platforms Resy and Tock.”Dining is one of the most important ways people engage with our brand,” said Rafa Marquez, president of international card services at American Express.
Analysts at William Blair said the acquisition aligns with American Express’ strategy of offering premium experiences to cardholders while encouraging deeper customer engagement.
TheFork will continue operating under its current leadership team, and the transaction is expected to be completed before the end of 2026.
American Express Company is a global payments company that operates card-issuing, merchant-acquiring, and card network businesses.
9. General Dynamics Corporation (NYSE:GD)
Free Cash Flow Yield: 6.30%
Free Cash Flow (TTM): $5.29 Billion
On June 11, Jefferies analyst Sheila Kahyaoglu upgraded General Dynamics Corporation (NYSE:GD) to Buy from Hold and raised the price target to $400 from $380. In a research note, the analyst said the company’s marine segment, which accounts for 33% of sales, has posted double-digit growth in 11 of the past 13 quarters. Jefferies noted that the U.S. Navy’s shipbuilding plan includes $125 billion in submarine procurement from fiscal 2027 through 2031, along with $6.2 billion for the submarine industrial base and $7.2 billion for submarine productivity. The firm now expects continued strength in General Dynamics’ near-term results, with the marine business supporting margin expansion.
Earlier, on May 18, Citi lowered its price recommendation on GD to $364 from $380. It reiterated a Neutral rating on the shares. The firm updated its aerospace and defense sector models and said it does not expect an “immediate V-shaped rally” without a resolution to the Middle East conflict. Citi still sees buying opportunities following the recent selloff and expects aerospace stocks to recover first, with defense names following later.
General Dynamics Corporation is a global aerospace and defense company. It provides products and services across business aviation, ship construction and repair, land combat vehicles, weapons systems and munitions, and technology products and services.
8. AT&T Inc. (NYSE:T)
Free Cash Flow Yield: 10.78%
Free Cash Flow (TTM): $8.85 Billion
On June 12, Freedom Broker initiated coverage of AT&T Inc. with a Buy rating. It also set a $30 price target on the stock. The firm said the U.S. telecom and cable sector entered 2026 at a more advanced stage of the convergence cycle than the market had expected just a few quarters ago. It views T-Mobile (TMUS) as the strongest fundamental story in the sector, citing its spectrum position, EBITDA growth rate, free cash flow margin, and balance-sheet flexibility. Freedom Broker also described AT&T as “a clear convergence story.”
On June 16, Reuters reported that AT&T announced Pascal Desroches will retire as CFO at the end of 2026 and that Jennifer Biry will succeed him. According to a company filing, Biry, the former CFO of McAfee, is set to become AT&T’s CFO at the beginning of 2027. She was appointed deputy CFO on June 15. Biry has held senior leadership roles at AT&T since 1999 across finance, sales, and strategy.
AT&T Inc. is a holding company that provides telecommunications and technology services worldwide. The company operates through its Communications and Latin America segments.
7. Salesforce, Inc. (NYSE:CRM)
Free Cash Flow Yield: 11.07%
Free Cash Flow (TTM): $16.55 Billion
On June 15, Truist maintained its Buy rating on Salesforce, Inc. (NYSE:CRM). It also set a $280 price target on the stock. The firm noted that Salesforce announced a $3.6 billion acquisition of Fin, valuing the company at about nine times its annual recurring revenue. In a research note, Truist said the deal reflects confidence that Salesforce’s distribution scale and product ecosystem can significantly accelerate Fin’s long-term growth beyond what it could achieve as a standalone business.
Also on June 15, Jefferies reiterated its Buy rating on Salesforce. The firm believes the acquisition will help accelerate AI adoption across Salesforce’s installed customer base. Jefferies said that while Fin has seen its greatest success among small and medium-sized businesses, its shift toward AI, proprietary large language model, rapid deployment capabilities, outcome-based pricing, and early enterprise wins should strengthen the broader Salesforce portfolio.
Jefferies also pointed out that Salesforce has completed 15 M&A deals since May 2025 as it works to speed up innovation and reposition itself against concerns about AI-driven disruption. The firm added that the $3.6 billion cash purchase price appears reasonable and still leaves Salesforce with $6.7 billion in cash at the end of 2026.
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence-powered Agentforce 360 Platform provides solutions for sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) services.
6. HF Sinclair Corporation (NYSE:DINO)
Free Cash Flow Yield: 11.63%
Free Cash Flow (TTM): $1.38 Billion
On June 12, Morgan Stanley raised its price recommendation on HF Sinclair Corporation (NYSE:DINO) to $78 from $69. It reiterated an Overweight rating on the stock. The analyst noted that refining margins have eased from their mid-May peak but remain well above pre-conflict levels. Morgan Stanley updated its refiner price targets and earnings estimates to reflect the latest commodity price outlook through 2027. The firm added that even if the Strait of Hormuz reopens, refining cracks are likely to remain supported by tight product inventories and steady demand trends.
Earlier, on June 5, Freedom Broker initiated coverage of DINO with a Hold rating. It also set a $62 price target. The analyst described HF Sinclair as a five-segment downstream company whose earnings are still largely driven by refining margins. The rating reflects the company’s diversified portfolio and disciplined capital return program. At the same time, the analyst maintained a more cautious view on long-term demand for refined fuels.
HF Sinclair Corporation is an energy company that produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Free Cash Flow Yield: 12.78%
Free Cash Flow (TTM): $1.58 Billion
On June 15, UBS analyst Manav Gupta raised the firm’s price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $95 from $90. He reiterated a Buy rating on the shares.
During the company’s first-quarter 2026 earnings call, CFO and Executive Vice President Monish Patolawala said that the upper end of the company’s 2026 guidance range is supported by two factors. He said management expects the team to continue executing its business plan successfully through the rest of the year and believes the stronger margin environment in the crushing and ethanol businesses will continue.
Commenting on the timing-related impacts recorded in the first quarter, Patolawala said that most of the $275 million in net negative mark-to-market and timing effects reported during the period are expected to reverse in the second quarter.
Archer-Daniels-Midland Company is a global agricultural supply chain manager and processor. The company supports food security by connecting local needs with global capabilities and also provides human and animal nutrition products.
4. PDD Holdings Inc. (NASDAQ:PDD)
Free Cash Flow Yield: 13.60%
Free Cash Flow (TTM): $71.64 Billion
On June 16, BNP Paribas initiated coverage of PDD Holdings Inc. (NASDAQ:PDD) with an Underperform rating. It also set an $89 price target on the stock. The analyst said the company faces “truly profound” challenges both in its domestic market and internationally. In a research note, BNP stated that PDD is “caged by the global regulatory environment and itself.” The firm also noted that the company chose not to adopt a more aggressive shareholder return policy, a move that could have helped improve investor sentiment and support a re-rating of the shares.
A day earlier, on June 15, BofA lowered its price recommendation on PDD to $113 from $140. It reiterated a Neutral rating. The analyst said the firm reduced its 2026 and 2027 revenue forecasts by 6% and lowered its net profit estimates by 21% to 22%. The changes reflect higher ecosystem investments, including merchant traffic support, commission rebates, and platform-funded coupons that are recorded as contra revenue.
PDD Holdings Inc. is a multinational commerce company that owns and operates a portfolio of businesses. The company focuses on bringing businesses and consumers into the digital economy, helping local communities and small businesses improve productivity and access new opportunities.
3. Omnicom Group Inc. (NYSE:OMC)
Free Cash Flow Yield: 13.64%
Free Cash Flow (TTM): $5.07 Billion
On June 3, Goldman Sachs initiated coverage of Omnicom Group Inc. (NYSE:OMC) with a Buy rating and a $146 price target. The firm sees a recovery in growth across the advertising agency sector. The analyst noted in a research report that Omnicom is trading at an 18% free cash flow yield while its core business continues to generate organic growth. Goldman Sachs also said its EBIT and free cash flow estimates for the company are above consensus expectations.
Earlier, on May 28, Rothschild & Co Redburn analyst Bianca Dallal re-initiated coverage of Omnicom with a Neutral rating and an $89 price target. The firm believes the proposed acquisition of Interpublic carries significant execution risks. In a research note, the analyst said Omnicom is “bound by its need to integrate, restructure, and reorganize the enlarged business.”
Omnicom Group Inc. is a marketing and sales company. It operates through global networks, connected capabilities, and specialized agencies that bring together its portfolio of companies to provide marketing, sales, communications, and commerce services to clients around the world.
2. Bank of America Corporation (NYSE:BAC)
Free Cash Flow Yield: 14.04%
Free Cash Flow (TTM): $56.5 Billion
On June 9, Reuters reported that Bank of America Corporation (NYSE:BAC) could exceed its initial forecast of 15% growth in second-quarter markets revenue, driven by strength in its equities business, according to Co-President Jim DeMare.
Speaking at a Morgan Stanley US financial services conference, DeMare said, “While credit spreads and the like have remained firm, a lot more of the activity and revenues have been coming from the equity business.” He added, “That’s what we’ve been seeing, I think, in general for the industry, probably for the last 12 months.”
Last month, Bank of America CEO Brian Moynihan said the bank expects trading revenue to rise 15% in the second quarter compared with the same period last year, when markets were affected by volatility linked to higher US tariffs.
The bank’s global markets division, which DeMare led until his promotion late last year, has now recorded 16 consecutive quarters of revenue growth. Higher client activity has helped drive increased trading volumes across its desks. The business is currently on pace to deliver a seventeenth straight quarter of growth. DeMare also said that the IPO pipeline remains strong.
Bank of America Corporation is a bank holding company and financial holding company. Its operations are organized into Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
1. General Motors Company (NYSE:GM)
Free Cash Flow Yield: 19.84%
Free Cash Flow (TTM): $22.4 Billion
On June 15, The Wall Street Journal reported that General Motors Company (NYSE:GM) is in discussions with Lockheed Martin about producing parts for the defense contractor’s weapons systems, according to people familiar with the matter.
Under the proposed arrangement, GM would manufacture commonly used components that could help Lockheed Martin increase munitions production. The companies are still discussing which parts GM could potentially supply.
Demand for missiles and other critical weapons has increased as stockpiles have been depleted by the wars in Ukraine and Iran. To rebuild supplies, officials from the Trump administration and the Pentagon have urged defense contractors to speed up production while also seeking support from other manufacturers, including GM.
Executives from GM and Lockheed Martin appeared together at a conference in Detroit to announce a broad agreement to work together on expanding munitions production. They said it was too early to discuss specific details or GM’s potential role as a supplier. For GM, the discussions are part of a broader effort to expand its defense business and develop new sources of revenue.
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automotive parts. The company also provides software-enabled services and subscription offerings worldwide.
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