Stock Quotes in this Article: CATO, GRMN, SUP, WMK

 The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- What would make a perfect stock? One feature that I look for is a stock that is debt-free. It is difficult for a company to go out of business when it has no debt.

I also prefer stocks that pay dividends. Dividends provide stability to the stocks and accelerate the return of capital.


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    The other thing I like to see is lots of cash. The more cash per share a company has relative to its stock price, the better. Cash is a great cushion during downturns.

    At, we just updated our free list of High-Cash, No-Debt, High-Yield Stocks, which includes more than 20 companies and lists the stock symbol, market cap, forward price-to-earnings ratio, cash per share, yield and cash per share as a percentage of stock price.

    One stock on the list is Cato (CATO), a North Carolina-based specialty retailer of fashion apparel and accessories in the southeastern US. This debt-free company has $9 in cash per share, representing about 36% of the recent price per share. On top of that, the current yield is 3.8% after the company increased the dividend rate by 16.5%. Earnings for the latest quarter were up 13% on a slight increase in revenues.

    Garmin (GRMN) is a $5.85 billion market cap debt-free company that makes global positioning systems, also known as GPS products. The stock sports a 5% yield after doubling its payout rate over last year. It trades at 15.4 times forward earnings. It has a decent cushion of $7.63 in cash per share.

    Superior Industries International (SUP), a manufacturer of aluminum road wheels, pays a yield of 4% and carries a forward price-to-earnings ratio of 10.8. The stock has a substantial $5.51 in cash per share and has no debt.

    Weis Markets (WMK), a retail supermarket chain, is another debt-free company. It has $5.17 in cash per share, a P/E ratio of 15 and a yield of 3.1%.

    To see the entire list of High-Cash, No-Debt, High-Yield Stocks, visit

    At the time of writing, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books
    Investing in Brazil Stocks and The Green Light on Green Stocks.