5/26/2013

10 Cheapest Growth Picks From The Dow Jones Index – Dogs Of The Dow Theory

Dogs of the Dow Jones originally published on “long-term-investments.blogspot.com”. Today, I like to highlight the current Dogs of the Dow.

The philosophy behind is to buy 10 stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no more Dogs of the Dow and buy therefore new Dogs of the Dow. Below is an updated sheet of the 10 best Dogs of the Dow. They have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index.

Summarized, the 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.45 percent as well as a forward P/E ratio of 12.31. The average P/B ratio amounts to 2.72 and P/S ratio is 2.49.

These are the most recommended Dogs of the Dow Jones:
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Pfizer (NYSE:PFE) has a market capitalization of $205.99 billion. The company employs 91,500 people, generates revenue of $58.986 billion and has a net income of $9.518 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.199 billion. The EBITDA margin is 44.42 percent (the operating margin is 20.48 percent and the net profit margin 16.14 percent).

Financial Analysis: The total debt represents 20.16 percent of the company’s assets and the total debt in relation to the equity amounts to 46.10 percent. Due to the financial situation, a return on equity of 11.62 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.58, the P/S ratio is 3.49 and the P/B ratio is finally 2.60. The dividend yield amounts to 3.31 percent and the beta ratio has a value of 0.75.


Long-Term Stock Price Chart Of Pfizer (PFE)
Long-Term Dividend Payment History of Pfizer (PFE)
Long-Term Dividend Yield History of Pfizer (PFE)

General Electric (NYSE:GE) has a market capitalization of $243.30 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.339 billion. The EBITDA margin is 19.91 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).

Financial Analysis: The total debt represents 60.42 percent of the company’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.45, the P/S ratio is 1.65 and the P/B ratio is finally 1.99. The dividend yield amounts to 3.23 percent and the beta ratio has a value of 1.68.


Long-Term Stock Price Chart Of General Electric (GE)
Long-Term Dividend Payment History of General Electric (GE)
Long-Term Dividend Yield History of General Electric (GE)

JPMorgan Chase (NYSE:JPM) has a market capitalization of $202.87 billion. The company employs 255,898 people, generates revenue of $56.063 billion and has a net income of $21.284 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46.462 billion. The EBITDA margin is 82.87 percent (the operating margin is 29.80 percent and the net profit margin 21.94 percent).

Financial Analysis: The total debt represents 29.88 percent of the company’s assets and the total debt in relation to the equity amounts to 345.46 percent. Due to the financial situation, a return on equity of 10.72 percent was realized. Twelve trailing months earnings per share reached a value of $5.60. Last fiscal year, the company paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.58, the P/S ratio is 2.09 and the P/B ratio is finally 1.05. The dividend yield amounts to 2.83 percent and the beta ratio has a value of 1.36.


Long-Term Stock Price Chart Of JPMorgan Chase (JPM)
Long-Term Dividend Payment History of JPMorgan Chase (JPM)
Long-Term Dividend Yield History of JPMorgan Chase (JPM)

Take a closer look at the full table of the best Dogs of the Dow Jones index. The the 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.45 percent as well as a forward P/E ratio of 12.31. The average P/B ratio amounts to 2.72 and P/S ratio is 2.49.

Here is the complete list:

10 Cheapest Stocks From The Dow Jones (Click to enlarge)

Related Stock Ticker Symbols:
T, VZ, INTC, MRK, PFE, DD, GE, CSCO, JPM, MSFT

Selected Articles:

*I am long INTC, GE, CSCO. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.


1 comment:

  1. I've looked in to these stocks but I can't bring myself to buy them with a history of dividend cuts. Were not talking a slight reduction either, these are massive cuts. I'd hate to have that happen. Even a huge company like GE isn't immune from this action.

    ReplyDelete

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