Investors are preparing for a bleak 2023 by doubling down on cash-rich companies. “We prefer companies that generate cash rather than those that require capital to grow. Not only will rates remain higher than in the past, but we will exit the era of hyper-accommodative monetary policy,” Bank of America said in a January 16 note. The higher the free cash flow, the better positioned the company is to meet its debt obligations. Companies with high free cash flow can also access cash more quickly in the event of an emergency or opportunity. “Companies that pay dividends, companies with good cash flow, quality balance sheets, international stocks – especially international value – this is where the puck has been headed, and I think it will continue,” Josh Brown, CEO of Ritholtz Wealth Management, told CNBC last week. Using FactSet data, CNBC Pro is screened for stocks that have plenty of money and are well-positioned for a tough year ahead. These are the criteria used: Stocks with high free cash flow yield of more than 10% Low volatility (beta less than 1) Upside potential at price target Buy rating of at least 40% The stocks seen on the screen below are in telecommunications, healthcare , and the consumer sector, which is generally considered a safe haven during downturns. US-listed Chesapeake Energy Corporation is the only energy stock on the screen, with a free cash flow yield of nearly 14%. Analysts gave it a 53.7% rise, and the majority (76.5%) gave it a “buy” rating. The stock, like most energy companies, has done well in the past year – it has risen about 40%. Last week, the firm announced that it had agreed to sell part of its operations in south Texas for $1.43 billion in cash. Companies in the healthcare or pharmaceutical industries also make cuts, such as US companies Bristol-Myers Squibb and CVS Health. Financial services company Cantor Fitzgerald said in a January 17 note that 2023 could be Bristol-Myers Squibb’s “breakout year,” and gave the stock an overweight rating. “BMY has one of the best 2023E growth profiles of any US Pharma group … seen in a recession year,” Cantor wrote. Canadian financial firm Fairfax stood out as having the highest FCF yield on the list – at 30.4%, while Hong Kong-listed WH Group – the world’s largest pork producer – received the highest buy rating at 94%. Two telecommunications companies – UK-based Vodafone Group and Germany-based Deutsche Telekom – have the highest FCF yields at 27% and 23.7%, respectively. Argus Research in a January 20 report noted that Vodafone shares have outperformed their benchmarks for the past three months. He added that the price is reasonable now, given the slow growth outlook. – CNBC’s Michael Bloom and Fred Imbert contributed to this report.