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Stingy Investor Tip Sheet
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| Summer Dogs |
Jonathan
Chevreau inquired about the Dogs of the Dow this week. That
prompted me to collect recent facts and figures on the 30 stocks in
the Dow Jones Industrial Average. The 10 stocks with the highest
yields are the Dogs of the Dow.
I collected stats on the Dow stocks and put them in the following
tables. The first shows value ratios and dividend yields. The second
shows price movements over the last year. In both cases, the ten
stocks at the top are the Dogs of the Dow.
Name Price Yield P/E P/B P/S
====================== ======= ===== ===== ===== =====
AT&T (T) $24.22 6.60% 11.45 1.49 1.17
DU PONT (DD) $25.20 6.10% 17.67 3.34 0.78
VERIZON (VZ) $29.54 6.10% 13.07 2.02 0.84
MERCK (MRK) $24.43 5.80% 8.76 2.69 2.25
CATERPILLAR (CAT) $35.56 4.50% 8.72 3.49 0.45
KRAFT FOODS (KFT) $24.81 4.50% 12.52 1.66 0.90
PFIZER (PFE) $14.16 4.30% 11.87 1.58 2.02
HOME DEPOT (HD) $23.20 3.70% 16.19 2.26 0.58
CHEVRON (CVX) $69.88 3.60% 6.89 1.63 0.63
J&J (JNJ) $54.62 3.50% 11.96 3.45 2.41
---------------------------------------------------------
INTEL (INTC) $15.86 3.40% 20.15 2.26 2.55
COCA COLA (KO) $47.83 3.40% 19.69 5.37 3.51
MCDONALDS (MCD) $57.07 3.40% 14.91 5.03 2.77
BOEING (BA) $48.83 3.30% 16.95 N/A 0.59
3M COMPANY (MMM) $58.41 3.30% 13.71 4.23 1.72
PROCTER GAMBLE (PG) $50.10 3.30% 11.46 2.52 1.80
GE (GE) $12.78 3.10% 8.30 1.38 0.78
AMER EXPRESS (AXP) $24.69 2.90% 13.75 2.34 1.43
THE TRAVELERS (TRV) $42.37 2.80% 9.67 0.94 1.04
UNITED TECH (UTX) $54.58 2.80% 11.68 3.26 0.91
EXXON MOBIL (XOM) $71.63 2.30% 9.39 3.32 0.87
MICROSOFT (MSFT) $23.45 2.20% 13.50 5.64 3.41
WAL MART (WMT) $48.25 2.20% 14.19 3.03 0.47
IBM (IBM) $107.32 2.00% 11.91 10.46 1.41
DISNEY (DIS) $23.49 1.40% 12.71 1.33 1.24
ALCOA (AA) $10.90 1.00% N/A 0.88 0.45
HEWLETT PACKARD (HPQ) $36.84 0.80% 11.90 2.18 0.75
JP MORGAN CHASE (JPM) $33.50 0.60% 29.70 0.92 2.52
BK OF AMERICA (BAC) $12.73 0.30% 14.94 0.51 1.49
CISCO (CSCO) $19.08 0.00% 15.97 2.98 2.94
Name Price 52wk Range From High From Low
====================== ======= ============== ========= ========
AT&T (T) $24.22 20.90 - 36.31 -33.30% 15.89%
DU PONT (DD) $25.20 16.05 - 48.22 -47.74% 57.01%
VERIZON (VZ) $29.54 23.07 - 36.72 -19.55% 28.05%
MERCK (MRK) $24.43 20.05 - 38.90 -37.20% 21.85%
CATERPILLAR (CAT) $35.56 21.71 - 81.58 -56.41% 63.80%
KRAFT FOODS (KFT) $24.81 20.81 - 34.97 -29.05% 19.22%
PFIZER (PFE) $14.16 11.62 - 20.13 -29.66% 21.86%
HOME DEPOT (HD) $23.20 17.05 - 30.74 -24.53% 36.07%
CHEVRON (CVX) $69.88 55.50 - 100.89 -30.74% 25.91%
J&J (JNJ) $54.62 46.25 - 72.76 -24.93% 18.10%
------------------------------------------------------------------
INTEL (INTC) $15.86 12.05 - 24.75 -35.92% 31.62%
COCA COLA (KO) $47.83 37.44 - 55.84 -14.34% 27.75%
MCDONALDS (MCD) $57.07 45.79 - 67.00 -14.82% 24.63%
BOEING (BA) $48.83 29.05 - 77.80 -37.24% 68.09%
3M COMPANY (MMM) $58.41 40.87 - 75.70 -22.84% 42.92%
PROCTER GAMBLE (PG) $50.10 43.93 - 73.57 -31.90% 14.05%
GE (GE) $12.78 5.87 - 30.39 -57.95% 117.72%
AMER EXPRESS (AXP) $24.69 9.71 - 45.17 -45.34% 154.27%
THE TRAVELERS (TRV) $42.37 28.91 - 58.57 -27.66% 46.56%
UNITED TECH (UTX) $54.58 37.40 - 69.37 -21.32% 45.94%
EXXON MOBIL (XOM) $71.63 56.51 - 89.63 -20.08% 26.76%
MICROSOFT (MSFT) $23.45 14.87 - 29.19 -19.66% 57.70%
WAL MART (WMT) $48.25 46.25 - 63.85 -24.43% 4.32%
IBM (IBM) $107.32 69.50 - 130.93 -18.03% 54.42%
DISNEY (DIS) $23.49 15.14 - 34.85 -32.60% 55.15%
ALCOA (AA) $10.90 4.97 - 40.28 -72.94% 119.32%
HEWLETT PACKARD (HPQ) $36.84 25.39 - 49.20 -25.12% 45.10%
JP MORGAN CHASE (JPM) $33.50 14.96 - 50.63 -33.83% 123.93%
BK OF AMERICA (BAC) $12.73 2.53 - 39.50 -67.77% 403.16%
CISCO (CSCO) $19.08 13.61 - 26.63 -28.35% 40.19%
Source: yahoo.com, June 16, 2009
I was interested to see that, even after a nice rally, the yield of
the Dogs stocks is still quite high. Four stocks yield more than 5%
and another three yield more than 4%. The average yield of the Dogs
is a healthy 4.9%.
But, more importantly, price-to-earnings ratios for many Dow stocks
remain quite low which is a little surprising given the recession.
Mind you, the P/E ratios shown are based on earnings over the last 4
quarters and may not reflect current realities.
For instance, the lowest P/E Dow stock is Cheveron (CVX) with a ratio of
6.9. But its forward P/E ratio (based on current prices and estimated
earnings over the next 4 quarters) is 9.3. Still not bad, but clearly
earnings expectations for the firm are down.
Six Dow stocks have P/Es of less than 10, and thirteen have P/Es of
less than 12. Even well regarded stocks like J&J (JNJ) are trading at
modest levels. J&J's P/E is 12 but analysts expect the company's
earnings to grow over the next year and it's forward P/E ratio comes
in at 11.3. Mind you, I wouldn't put
too much stock in average analyst estimates. But a P/E of 12 seems
quite reasonable for a quality firm like J&J.
So, as we approach the dog days of summer, you might want to consider
adding a few value-priced Dow stocks to your portfolio.
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| | 06/17/2009 9:30 PM EST Permlink save & share | Dividends |
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