StockStory, a stock research platform, named one cash-producing stock to buy and two to sell, arguing that cash generation alone does not make a good investment. Its buy pick is Texas Pacific Land (TPL), which owns about 868,000 acres in the Permian Basin. It has a trailing 12-month free cash flow margin of 58.7%, annual revenue growth of 31.1% over ten years, and a gross margin of 94.9%. The stock trades at $328.33, or 23.6x forward EV-to-EBITDA. The two sell picks are Home Depot (HD) and Bausch + Lomb (BLCO). Home Depot has a free cash flow margin of 8.9%, revenue growth of 3% a year over three years, and a 33.1% gross margin. Bausch + Lomb has a 4.7% margin, falling earnings per share over four years, and a 1.7% return on capital.

McDonald's and Home Depot stand out as dividend payers with strong free cash flow (FCF), the cash left after capital spending. McDonald's had FCF of $3.7 billion in the first half, against $2.6 billion in dividend payments. About 95% of its more than 46,000 restaurants are franchised, which keeps its costs low. It raised its December quarterly payout 3.8% to $1.93, a 50th straight annual increase, for a 3.2% yield. Home Depot's FCF was $9.7 billion in the first half, against $4.6 billion in dividends. Sales have been tepid, with second-quarter comparable sales up 1.7%, but adjusted diluted earnings per share rose 5.1% to $4.92. It has raised dividends every year since 2010 and yields 3%.

Amazon and Home Depot offer investors a choice between growth and stability, according to a comparison of the two consumer stocks for 2026. Amazon's revenue for fiscal 2025 reached nearly $716.9 billion, up 12.4%. Net income rose to about $77.7 billion from $59.2 billion, a net margin of roughly 10.8%. Home Depot's revenue rose 3.2% to nearly $164.7 billion, but net income fell to about $14.2 billion from $14.8 billion. Its debt-to-equity ratio is about 5.1x, against 0.4x for Amazon. Amazon trades at a forward price-to-earnings ratio of 19.8x, versus 20.4x for Home Depot. Home Depot's price-to-sales ratio is lower, at 1.8x against 3.5x. The author favours Amazon for its diversified income and long-term growth potential.