A business’ cash flow is a good metric to evaluate the financial health and earnings vis-à-vis stock price. Corporations that generate a positive cash flow indicate good long-term prospects and are better poised to generate shareholder value. Investors looking for dividend earning stock usually seek out companies with a strong cash flow. Established businesses that do not have a positive cash flow may be in an expansion stage. Conversely, cash-flow-negative companies may need to raise additional capital, which could dilute shareholder earnings and drive stock prices down.