5 Best Debt Free Stocks to Buy

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a big tech company with no net debt. While it isn’t clear how much Microsoft Corporation (NASDAQ:MSFT) has in overseas cash and hence how much the company might have to pay to repatriate its overseas cash, the company’s strong free cash flow generation would likely cover any net debt in a few years if management decided to do so. As far as capital returns, Microsoft Corporation (NASDAQ:MSFT) has raised its annual dividend for 20 consecutive years, indicating that the company has generated substantial excess capital in the past. With its cloud and enterprise growth, the company could have more excess capital in the future as well.

259 hedge funds in our database owned shares of Microsoft Corporation (NASDAQ:MSFT) at the end of Q4, ranking the stock #1 on our list of 11 Best Debt Free Stocks to Buy.

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