Cash cow

A company that pays out most of its earnings per share to stockholders as dividends. Or, a company or division of a company that generates a steady and significant amount of free cash flow.

Cash Cow

In growth share matrices, the quadrant representing companies, especially subsidies, that produce large profits with little need for cash injection because they have large market shares in slow-growing markets. A cash cow is not necessarily experiencing growth; if it is growing, it is almost always very slow. Corporations want to own cash cows, as they require little oversight compared to the profits they produce. See also: Marketing, Portfolio analysis.

cash cow

A business or a segment of a business that produces significantly more cash than it consumes. As an example, a firm may sell a product that requires minimal advertising and promotional expenditures but continues to generate revenues year after year. Firms sometimes use cash cows to provide cash for financing other segments of their business.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

cash cow

see BOSTON MATRIX.

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References in periodicals archive

Partnering with Huboo has meant customers can expect goods to be despatched within one day of payment - an area that Vintage Cash Cow was fast approaching being unable to fulfil.

A lesson in outsourcing expertise

Vintage Cash Cow, who are organising the auction, said it's expected to fetch in excess of [pounds sterling]100,000, with coin collectors attracted by its rarity and exceptionally good condition.

Vintage coin about to be binned valued at an incredible [pounds sterling]100,000 - and it'll help the owner's granddaughter buy her first home; A woman from Hull found the coin while clearing out her attic - little did she know it actually dates back to 1644

In this respect she was, I believe, [Mr James'] 'cash cow'." Mr Tyndall told Mr James: "As the most senior council officer...

Chief executive's complaints against councillor dismissed; 'CASH COW' CLAIM WAS 'ROBUST COMMENT' SAYS OMBUDSMAN

Olick also reported, “Carter is promising 20 percent cash return on most of his investments, and his "Texas Cash Cow Investments"is just the business model his clients want.”

Texas Cash Cow Investments Featured on CNBC Television Program

He said: "They've (Gwynedd) been making an alleged profit of pounds 700,000 a year from the mooring fees, but rather than ring-fencing that towards the harbour's upkeep, they've been using it as a cash cow to make money.

HARBOUR GRUDGE

This would be a far more sensible use of mobile cameras rather than as a cash cow on a motorway bridge where there haven't been any incidents at all.'

'Cash cow' speed camera campaign

It's a lousy business unless, of course, you have a cash cow metalcasting business that is so lucrative you'll invest in a marginal business to protect it.

Considering machining

Could affordable housing be the new real estate cash cow?

Will tax incentives be big enough to tempt developers?

Diana may have regarded him as her 'rock' but for him she has simply become a cash cow to be milked at every opportunity.

Burrell has to learn to keep quiet

FNX is one of the few rare exploration companies to have an operating mine as its cash cow.

1 Nowhere to grow but up for FNX

The rear wing is prime sponsor real estate (the teams charge lots of money to put a company's name there), and there is a lot of pressure to keep this cash cow in one piece.

F1 biplanes?