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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuInvestors looking for opportunities in a market still near record highs should turn to quality stocks, according to Bank of America. While volatility has reigned this year, equities remain highly valued. On Monday , the S & P 500 rose more than 1%, thanks to a jump in artificial intelligence-related stocks. However, it is names with high free cash flow that have been the best performing factor over the last 30 years, strategist Jared Woodard said in a Sept. 9 note. The firm has found that free cash flow yield was the best measure of quality because it is difficult to manipulate and is comparable across companies. “Firms that can generate steady cash have been rewarded by investors because they have the flexibility to invest for the future, pay down debts, and return capital to shareholders as needed,” he said. These days, the free-cash-flow yield on the S & P 500 is at record lows as tech companies spend billions and take on debt to maintain AI market share, Woodard said. Together, Amazon , Alphabet , Meta Platforms , Microsoft and Oracle are expected to post negative free cash flow of $141 billion over the next 12 months, he noted. “Buy what is scarce: with S & P 500 FCF yield at record lows, high-FCF stocks are +43% YTD, on pace for [a] record,” Woodard wrote. Bank of America identified several quality, non-AI companies that it rates a buy. The names also have high free cash flow. For those seeking income, the stocks below have a solid dividend, which can pay investors to wait for a struggling stock to turn around. Allstate has the highest free-cash-flow yield of the dividend payers at 18%. The stock yields about 1.8% and is up roughly 17% year to date. The insurance company handily beat expectations when it reported second-quarter results in August. Its adjusted earnings came in at $8.99 per share, versus the $6.06 a share expected from analysts polled by FactSet. While Bank of America maintains confidence in the stock with its buy rating, the average analyst rating is a hold, per FactSet. Consensus price targets suggest upside of more than 12% from current levels. Cigna also showed up on Bank of America’s list. Wall Street is keen on the health insurance name, as the average analyst rates it overweight, according to FactSet. Consensus price targets see 24% upside. In July, the company posted an earnings and revenue beat for its second quarter. It also raised its full-year adjusted earnings guidance to $30.45 per share, up slightly from its prior guidance of $30.35 a share. However, the new outlook was in-line with analysts’ expectations. The stock is down slightly for the year and yields 2.3%. Lastly, Hasbro has an average rating of buy and 25% upside to the average price target, according to FactSet. The toymaker in July reported adjusted earnings and revenue that beat expectations in the second quarter. Growth was led by its “Magic: The Gathering” trading card game, which saw quarterly revenue above $500 million for the first time in the product’s more than 30-year history, the company said. HAS YTD mountain Hasbro year to date The toy category in general is up, CEO Chris Cocks told CNBC’s ” Squawk on the Street ” after the earnings report. “People are going out, buying toys, buying games, playing and collecting across a broad swath,” he said . Hasbro pays a 3.2% yield and has gained around 7% so far in 2026.Read More