3 Top Stocks That Are Cash Cows

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It is named cash cows due to the similarity of cows producing milk regularly. Companies that produce steady cash flow are more equipped to navigate rocky markets or economic conditions than companies with low cash flow. This is because they have excess money to use as they see fit. A great place to find cash cow stocks is to look at the A-rated Pacer U.S. Cash Cows 100 ETF (COWZ).

The ETF screens the Russell 1000 for the top 100 companies based on free cash flow yield. Plus, since the beginning of September, the ETF has outperformed the S&P 500. So I imported the ETF’s holdings into a screen to find the stocks with a Buy rating or higher in our POWR Ratings system. Some of the top stocks included LKQ Corporation (LKQ), Boyd Gaming Corporation (BYD), and United States Steel Corporation (X), which is why I am highlighting them below.

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