These stocks have high dividend growth + high free cash flow yield

Stocks with high dividend growth and high free cash flow yield can generate more returns than stocks seeing high dividend growth alone, according to a Wolfe Research note.

This defensive strategy has historically outperformed the S&P 500 (SP500) by 500 basis points annually, said Chris Senyek, chief investment strategist.

The following are companies with high dividend growth in a last-twelve-month basis, and a high unlevered free cash flow yield.

• Twenty-First Century Fox (FOXA) – 2024 FCF yield: 8.9%; Last 12-month dividend growth: 4%
• The Interpublic Group of Companies (IPG) – 2024 FCF yield: 8.6%; Last 12-month dividend growth: 7%
• Sirius XM Holdings (SIRI) – 2024 FCF yield: 8.9%; Last 12-month dividend growth: 12%
• Wynn Resorts (WYNN) – 2024 FCF yield: 6.6%; Last 12-month dividend growth: 300%
• Lennar Corp. (LEN) – 2024 FCF yield: 7%; Last 12-month dividend growth: 16%
• PulteGroup Inc. (PHM) – 2024 FCF yield: 6.4%; Last 12-month dividend growth: 23%
• Tapestry (TPR) – 2024 FCF yield: 8.8%; Last 12-month dividend growth: 17%
• Bath & Body Works (BBWI) – 2024 FCF yield: 8.2%; Last 12-month dividend growth: 33%
• Lear Corp. (LEA) – 2024 FCF yield: 7.1%; Last 12-month dividend growth: 33%
• KB Home (KBH) – 2024 FCF yield: 6.2%; Last 12-month dividend growth: 42%
• Archer-Daniels-Midland Co. (ADM) – 2024 FCF yield: 7.6%; Last 12-month dividend growth: 12%
• Lamb Weston (LW) – 2024 FCF yield: 8.1%; Last 12-month dividend growth: 21%
• Permian Resources (PR) – 2024 FCF yield: 10.3%; Last 12-month dividend growth: 185%
• Matador Resources Co. (MTDR) – 2024 FCF yield: 9.2%; Last 12-month dividend growth: 50%
• Merck & Co. (MRK) – 2024 FCF yield: 6.3%; Last 12-month dividend growth: 6%
• Amgen Inc. (AMGN) – 2024 FCF yield: 6.1%; Last 12-month dividend growth: 8%
• Cigna Group (CI) – 2024 FCF yield: 9.1%; Last 12-month dividend growth: 12%
• CVS Health (CVS) – 2024 FCF yield: 6.8%; Last 12-month dividend growth: 10%
• McKesson Corp. (MCK) – 2024 FCF yield: 8.2%; Last 12-month dividend growth: 15%
• Delta Air Lines (DAL) – 2024 FCF yield: 7.3%; Last 12-month dividend growth: 350%
• EMCOR Group Inc. (EME) – 2024 FCF yield: 4.7%; Last 12-month dividend growth: 30%
• SS&C Tech Holdings (SSNC) – 2024 FCF yield: 5.2%; Last 12-month dividend growth: 20%
• Snap-on Inc. (SNA) – 2024 FCF yield: 7.2%; Last 12-month dividend growth: 25%
• Owens Corning (OC) – 2024 FCF yield: 6.3%; Last 12-month dividend growth: 21%
• Woodward Inc. (WWD) – 2024 FCF yield: 4.6%; Last 12-month dividend growth: 15%
• WESCO International (WCC) – 2024 FCF yield: 8.6%; Last 12-month dividend growth: 108%
• AGCO Corp. (AGCO) – 2024 FCF yield: 5.7%; Last 12-month dividend growth: 15%
• Boise Cascade Co. (BCC) – 2024 FCF yield: 6.5%; Last 12-month dividend growth: 40%
• QUALCOMM Inc. (QCOM) – 2024 FCF yield: 5.1%; Last 12-month dividend growth: 41%
• Dell Technologies Inc. (DELL) – 2024 FCF yield: 4.9%; Last 12-month dividend growth: 17%
• NXP Semiconductors NV (NXPI) – 2024 FCF yield: 4.5%; Last 12-month dividend growth: 9%
• TE Connectivity Ltd. (TEL) – 2024 FCF yield: 6%; Last 12-month dividend growth: 7%
• HP (HPQ) – 2024 FCF yield: 8.1%; Last 12-month dividend growth: 7%
• Hewlett Packard Enterprise (HPE) – 2024 FCF yield: 6.2%; Last 12-month dividend growth: 6%
• Skyworks Solutions Inc. (SWKS) – 2024 FCF yield: 5.8%; Last 12-month dividend growth: 10%
• Amdocs Limited (DOX) – 2024 FCF yield: 5.4%; Last 12-month dividend growth: 10%
• SYNNEX Corp. (SNX) – 2024 FCF yield: 9.5%; Last 12-month dividend growth: 15%
• Amkor Tech (AMKR) – 2024 FCF yield: 6.1%; Last 12-month dividend growth: 10%
• CF Industries Holdings (CF) – 2024 FCF yield: 9%; Last 12-month dividend growth: 13%
• Reliance Steel & Aluminum Co. (RS) – 2024 FCF yield: 5.6%; Last 12-month dividend growth: 12%
• Berry Plastics Group Inc. (BERY) – 2024 FCF yield: 6%; Last 12-month dividend growth: 45%
• Vistra Energy Corp. (VST) – 2024 FCF yield: 4.2%; Last 12-month dividend growth: 12%
• Clearway Energy Inc. (CWEN) – 2024 FCF yield: 4.3%; Last 12-month dividend growth: 8%