Before investing in a company, check out how that company is spending its cash.
To bolster both growth and investor confidence, businesses holding cash often choose between three main strategies: boosting capital spending, making acquisitions, or returning cash to shareholders through dividends or share buybacks.
Or, management can pursue a combination of all three strategies, reports financial-planning.com, which recently compiled a list of the 10 companies on the S&P 500 that were holding the most cash as of the end of Q2. Those included businesses in the financial and utilities sectors.
To check of the list, click here.