Top 5 Income Companies To Invest In 2014

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Avista (NYSE: AVA  ) , whose recent revenue and earnings are plotted below.

Top 10 Managed Healthcare Companies To Buy For 2015: Codexis Inc.(CDXS)

Codexis, Inc. engages in the production of custom industrial enzymes for use in the manufacture of biofuels, chemicals, and pharmaceutical ingredients. The company offers Codex Biocatalyst Panels and Kits to pharmaceutical companies that are engaged in drug development and the marketing of approved drugs to allow them to screen and identify possible enzymatic manufacturing processes for their drug candidates and their marketed products. It also provides enzyme screening services, enzyme optimization services, and enzymes, as well as supplies intermediates and active pharmaceutical ingredients to pharmaceutical companies. In addition, the company develops CodeXyme cellulase enzymes to convert cellulosic biomass, a non-food plant material into affordable sugars, which can then be converted into renewable fuels and chemicals; and CodeXol detergent alcohols that are used to manufacture surfactants, which are used as cleaning ingredients in consumer products, such as shampoos, liquid soaps, and laundry detergents. It intends to market CodeXyme cellulase enzymes to chemicals manufacturers; and CodeXol detergent alcohols as a drop-in substitute for the detergent alcohols market. The company has strategic collaborations with Royal Dutch Shell plc and Iogen Energy Corporation for the production of cellulosic ethanol from wheat straw and corn stover feedstocks. Codexis, Inc. was founded in 2002 and is headquartered in Redwood City, California.

Advisors' Opinion:

• [By Maxx Chatsko]

  He believes several companies have set the bar precipitously low to start the year despite targeted developments expected to occur before the start of 2014. Watch the following video for his thoughts on potential positive surprises awaiting investors in�Amyris� (NASDAQ: AMRS  ) ,�BioAmber� (NYSE: BIOA  ) ,�Codexis� (NASDAQ: CDXS  ) , and�Solazyme� (NASDAQ: SZYM  ) .

• [By Maxx Chatsko]

  Synthetic biology company and industrial bio-enzyme manufacturer�Codexis (NASDAQ: CDXS  ) announced its first-quarter earnings after the market closed Tuesday. The industrial enzyme firm is still attempting to get back on its feet after Shell (NYSE: RDS-A  ) ended a major collaboration in the second half of 2012. The partnership provided more than $350 million to Codexis over several years, so it is easy to see how the developmental-stage company has foundered since. Despite continued losses, it appears that Codexis is slowly climbing back to a bright future. Here is what investors need to know about the latest developments.

• [By Maxx Chatsko]

  The company will now compete more readily with industry leaders Novozymes from Novo Nordisk (NYSE: NVO  ) and Genencor from DuPont (NYSE: DD  ) . However, the biggest effects could be felt at Codexis (NASDAQ: CDXS  ) , which has also licensed the cutting-edge host organism from Dyadic. Will BASF's push into industrial enzymes, specifically using the C1 platform, vindicate Codexis or shove it out of the way?

Top 5 Income Companies To Invest In 2014: DineEquity Inc (DIN)

DineEquity, Inc., incorporated on May 07, 1976, owns franchise and operate two restaurant concepts: Applebee's Neighborhood Grill & Bar, (Applebee's), in the bar and grill segment of the casual dining category of the restaurant industry, and International House of Pancakes (IHOP), in the family dining category of the restaurant industry. As of December 31, 2012, the franchise operations segment consisted of 2,011 restaurants operated by Applebee's franchisees in the United States, one United States territory and 15 foreign countries and 1,569 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and five foreign countries. As of December 31, 2012, the Company restaurant operations segment consisted of 23 Applebee's Company-operated restaurants, 10 IHOP Company-operated restaurants and two IHOP restaurants reacquired from franchisees and operated by IHOP on a temporary basis until refranchised. Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases, as well as sales of equipment associated with refranchised IHOP restaurants and a portion of franchise fees for restaurants taken back from franchisees not allocated to IHOP intellectual property. In October 2012, it completed the refranchising program and completed the transitioning to a 99% franchised restaurant system.

Applebee's

The Company develops, franchises and operates restaurants in the bar and grill segment of the casual dining category of the restaurant industry under the name Applebee's Neighborhood Grill & Bar. As of December 31, 2012, 68 franchise groups operated 2,011 of these restaurants and 23 restaurants were Company-operated. The restaurants were located in 49 states, one United States territory and 15 countries outside of the United States. During the year ended December 31, 2012, 20 domestic franchise restaurants opened, six domestic franchise restaurants closed. 154 Company-operated! restaurants were franchised. The number of restaurants held by an individual franchisee ranges from one to 438 restaurants. As of December 31, 2012, it is focusing on international franchising primarily in Canada, Mexico, Central and South America, and the Mediterranean/Middle East. As of December 31, 2012, there were 149 international Applebee's franchise restaurants. During 2012, 14 international franchise restaurants opened and 13 international franchise restaurants closed.

IHOP

The Company develops franchises and operates restaurants in the family dining category of the restaurant industry under the names IHOP and International House of Pancakes. As of December 31, 2012 there were a total of 1,581 IHOP restaurants of which 1,404 were subject to franchise agreements, 165 were subject to area license agreements, 10 were Company-operated restaurants and two restaurants were reacquired from franchisees and operated by IHOP on a temporary basis. The Company owns and operates 10 IHOP restaurants in the Cincinnati market area primarily to test new remodel programs, operating procedures, products, technology, cooking platforms and service models. IHOP restaurants are located in all 50 states of the United States, the District of Columbia, Puerto Rico and the United States Virgin Islands and internationally in Canada, the Dominican Republic, Guatemala, Mexico and the United Arab Emirates. As of December 31, 2012, the area licensee for the state of Florida and certain counties in Georgia operated or sub-franchised a total of 152 IHOP restaurants, and the area licensees for the province of British Columbia, Canada operated or sub-franchised a total of 13 IHOP restaurants. As of December 31, 2012, the Company had signed commitments and options from franchisees to build 245 IHOP restaurants over the next 17 years, comprised of 5 restaurants under single-restaurant or non-traditional development agreements, 120 restaurants under multi-restaurant development agreements and 63 restaurants! under in! ternational development agreements. As of December 31, 2012, there were 1,525 domestic IHOP franchise and area license restaurants. During 2012, its franchisees and area licensees opened 40 domestic franchise restaurants and 17 domestic franchise and area license restaurants were closed. As of December 31, 2012, there were 44 international IHOP franchise and area license restaurants. During 2012, its franchisees opened eight international franchise restaurants and no restaurants were closed.

The Company competes with Chili's, T.G.I. Friday's, Ruby Tuesday's, Denny's, Cracker Barrel Old Country Store and Bob Evans Restaurants.

Advisors' Opinion:

• [By Rick Aristotle Munarriz]

  Alamy Fried chicken and waffles is a staple menu item at countless soul food and comfort food restaurants, but that's not stopping Burger King (BKW) from trying to give the meal a fast-food spin. Burger King is testing a new sandwich in the Northeast that takes the breaded chicken patty used in its Classic Crispy Chicken Sandwich from its King Deals Value Menu and replaces the bun with a split waffle. Burger King's Chicken & Waffle Sandwich isn't as hearty as the meal that it's based on. It's selling for as little as $2.29. But the chain's latest attempt to turn heads with a unique menu item will at least attract curious nibblers if it does decide to broaden the offering across the country. Waffling About Burger King isn't the first popular chain to attempt to reinvent this classic dish. As Nation's Restaurant News points out, last summer, Popeyes Louisiana Kitchen (PLKI) offered Chicken Waffle Tenders -- consisting of chicken tenders dipped in a vanilla maple-scented waffle batter, served with a honey maple dipping sauce. DineEquity's (DIN) IHOP did it three years ago by combining its chicken strips with Belgian waffle quarters. Yum! Brands (YUM) tried to breathe new life into its breakfast business last summer by testing a Waffle Taco -- an egg, sausage, and waffle breakfast sandwich. Even if it doesn't succeed -- and some of the early taste tests haven't been very flattering to the chain's new sandwich -- it's at least comforting to see that Burger King isn't just copying McDonald's (MCD) the way that it has for the past couple of years. Burger King followed McDonald's in offering fancy coffee drinks, fresh fruit smoothies, and popcorn chicken. It has gone on to roll out doppelgangers of the Egg McMuffin and McRib sandwiches. In November, it introduced the Big King, which any patron will quickly recognize as a body double to the Big Mac. Then again, it's not as if following McDonald's lead is such a clever idea right now. The world's largest re

• [By Ben Levisohn]

  Shares of Ruby Tuesday have gained 4.8% to $7.59 this morning, making it the third-best performer in the S&P 1500 and outpacing other restaurant stocks. Jack in the Box (JACK) has dropped 0.8% to $38.76, DineEquity (DIN), which operates Applebee’s and IHOP, has gained 0.1%% to 66.12, Denny’s (DENN) has fallen 0.2% to $6.06 and recent-IPO Potbelly (PBPB) has gained 1.7% to $30.73.

Top 5 Income Companies To Invest In 2014: Rogers Communication Inc.(RCI)

Rogers Communications, Inc. operates as a communications and media company in Canada. The company?s Wireless segment provides wireless voice and data communications services. It operates a global system for mobile communications and general packet radio service network. This segment markets its products and services under Rogers Wireless, Fido, and chatr brands. Its Cable segment offers cable television, high-speed Internet access, and cable telephony services. As of December 31, 2010, this segment provided digital cable services to approximately 1.7 million households; Internet service to approximately 1.7 million residential subscribers; and residential circuit-switched telephony services to approximately a million subscribers. This segment also offers local and long-distance telephone, enhanced voice and data services, and IP access. In addition, this segment operates a retail distribution chain consisting of approximately 400 stores that provide cable services and digi tal and Internet equipment, as well as offers digital video disc and video game sales and rentals. The company?s Media segment publishes magazines, trade and professional publications, and directories, as well as operates 55 radio stations in Canada; multicultural OMNI broadcast television stations; the 5 station Citytv television network; specialty sports television services, including Rogers Sportsnet, Sportnet ONE, and Setanta Sports Canada; specialty services, which comprise Outdoor Life Network, The Biography Channel Canada, and G4 Canada; and televised shopping service, The Shopping Channel. It also holds an ownership in a mobile sports and events production and distribution joint venture; delivers content and conducts ecommerce through the Internet; and owns Blue Jays, a League Baseball club, as well as Rogers Centre sports and entertainment venue. The company was founded in 1920 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Garrett Cook]

  Telecommunications services shares fell by 0.26 percent on Thursday. Top losers in the sector included AT&T (NYSE: T), down 2.2 percent, and Rogers Communications (NYSE: RCI), off 1.9 percent.

• [By Tom Taulli]

  Big competitors for BCE include Rogers Communications (RCI) and Telus (TU), though it also faces niche players such as Public Mobile, Wind Mobile and Mobilicity. Until recently, there was buzz that Verizon (VZ) might enter the market by buying up the latter two, though VZ apparently scrapped plans for Canadian expansion until 2014.

• [By Dan Caplinger]

  The big news for Madison Square Garden has been the success of its key sports franchises. The New York Knicks basketball team made the playoffs and earned the No. 2 seed in the Eastern Conference. Even more importantly, the long-delayed National Hockey League season finally got going in January, helping resurrect what many had feared would be a lost season, sending shares of MSG, as well as Canadian venue/team-owners Rogers Communications (NYSE: RCI  ) and BCE (NYSE: BCE  ) , higher. As it turned out, MSG's New York Rangers made the playoffs and will go up against the Washington Capitals in the first round. Playoffs are an especially lucrative time for sports viewership, and usually translate into extra profits for the company's broadcast businesses.

Top 5 Income Companies To Invest In 2014: Woolworths Ltd (WOW)

Woolworths Limited is an Australia-based company. The Company operates in five segments: Australian Food and Liquor, New Zealand Supermarkets, Petrol, BIG W and Hotels. Australian Food and Liquor segment is engaged in the procurement of food and liquor and products for resale to customers in Australia. New Zealand Supermarkets segment is engaged in the procurement of food and liquor and products for resale to customers in New Zealand. Petrol segment is engaged in the procurement of petroleum products for resale to customers in Australia. BIG W segment is engaged procurement of discount general merchandise products for resale to customers in Australia. Hotels segment is engaged in the provision of leisure and hospitality services, including food and alcohol, accommodation, entertainment and gaming. Advisors' Opinion:

• [By Jonathan Burgos]

  Woolworths Ltd. (WOW) dropped 1.6 percent to A$33.22 after Australia�� largest retailer said challenging economic condition were evident in the second quarter.