ZACKS·2025-11-12 02:21Core Insights - Companies with strong cash flows demonstrate financial stability, enabling them to pay down debt, pursue growth opportunities, and distribute dividends [1] - Microsoft and Apple are highlighted as prime examples of cash-generating tech giants [1] Apple Overview - Apple shares have increased by 10% year-to-date, although this is below the S&P 500 performance [2] - The latest quarterly results set records in revenue, EPS, and iPhone revenue for the September period [2] - Apple has consistently generated cash, paying higher dividends for 13 consecutive years, with a current yield of 0.4% and a five-year annualized dividend growth of 5.0% [6] - The company generated $98.8 billion in free cash flow over the trailing twelve months [6] Microsoft Overview - Microsoft shares have risen by 21% in 2025, outperforming the S&P 500's 19% gain [7] - The latest earnings report showed EPS of $4.13 and sales of $77.7 billion, both exceeding expectations, with sales growing 18% year-over-year and EPS increasing by 25% [7] - Microsoft has a five-year annualized dividend growth rate of 10% and generated $78.0 billion in free cash flow over the trailing twelve months [9] Conclusion - Companies with robust cash-generating capabilities are attractive investment targets due to their ability to support growth, pay dividends, and manage debt effectively [10] - Microsoft and Apple are positioned as strong cash-generators in the tech sector [10]