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10 Best Dogs Of The Dow Stocks

By  |  Stock Markets  |  Nov 27, 2012 10:39AM GMT  |   Add a Comment
 
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Many people ask themselves how to make money with stocks and generate a second income that is substantial enough to support them in early retirement. Most investors try to search for a safe investment strategy that works consistently well. Something simple enough to understand and easy to implement.

My strategy is to buy the 10 Dogs of the Dow stocks with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold them for the year. After this period, the investor should sell those stocks that are no longer Dogs of the Dow and buy the new Dogs of the Dow. Below is an updated list of the 10 best Dogs of the Dow. These stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index.

The ten cheapest Dogs of the Dow have an average dividend yield of 21.72 percent as well as a forward P/E ratio of 12.02. The average P/B ratio amounts to 2.37 and P/S ratio is 1.97.

Verizon (VZ) has a market capitalization of $123.57 billion. The company employs 184,500 people, generates revenue of $110.875 billion and has a net income of $10.198 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.376 billion. The EBITDA margin is 26.49 percent (the operating margin is 11.62 percent and the net profit margin 9.20 percent).

Financial Analysis: The total debt represents 23.93 percent of the company’s assets and the total debt in relation to the equity amounts to 153.33 percent. Due to the financial situation, a return on equity of 6.45 percent was realized. Twelve trailing months earnings per share reached a value of $1.07. Last fiscal year, the company paid $1.98 in the form of dividends to shareholders. The earnings are expected to grow by 16.26 percent for the next year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.37, the P/S ratio is 1.13 and the P/B ratio is finally 3.45. The dividend yield amounts to 4.71 percent and the beta ratio has a value of 0.51.

Long-Term Stock History Chart Of Verizon
Long-Term Stock History Chart Of Verizon


Long-Term Dividends History of Verizon (VZ)
Long-Term Dividends History of Verizon (VZ)


Long-Term Dividend Yield History of Verizon (NYSE VZ)
Long-Term Dividend Yield History of Verizon (NYSE VZ)

E I Du Pont De Nemours (NYSE:DD) has a market capitalization of $40.42 billion. The company employs 70,000 people, generates revenue of $38.719 billion and has a net income of $3.510 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.289 billion. The EBITDA margin is 16.24 percent (the operating margin is 11.06 percent and the net profit margin 9.07 percent).

Financial Analysis: The total debt represents 25.89 percent of the company’s assets and the total debt in relation to the equity amounts to 146.08 percent. Due to the financial situation, a return on equity of 39.82 percent was realized. Twelve trailing months earnings per share reached a value of $2.98. Last fiscal year, the company paid $1.64 in the form of dividends to shareholders. The earnings are expected to grow by 12.73 percent for the next year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.54, the P/S ratio is 1.04 and the P/B ratio is finally 4.78. The dividend yield amounts to 3.99 percent and the beta ratio has a value of 1.47.

Long-Term Stock History Chart Of E I Du Pont De Nemours
Long-Term Stock History Chart Of E I Du Pont De Nemours


Long-Term Dividends History of E I Du Pont De Nemours (DD)
Long-Term Dividends History of E I Du Pont De Nemours (DD)


Long-Term Dividend Yield History of E I Du Pont De Nemours (NYSE DD)
Long-Term Dividend Yield History of E I Du Pont De Nemours (NYSE DD)

General Electric (NYSE:GE) has a market capitalization of $220.84 billion. The company employs 301,000 people, generates revenue of $147.300 billion and has a net income of $14.366 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.015 billion. The EBITDA margin is 21.06 percent (the operating margin is 13.64 percent and the net profit margin 9.75 percent).

Financial Analysis: The total debt represents 63.22 percent of the company’s assets and the total debt in relation to the equity amounts to 389.43 percent. Due to the financial situation, a return on equity of 11.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $0.61 in the form of dividends to shareholders. The earnings are expected to grow by 12.58 percent for the next year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.63, the P/S ratio is 1.50 and the P/B ratio is finally 1.91. The dividend yield amounts to 3.23 percent and the beta ratio has a value of 1.62.

Long-Term Stock History Chart Of General Electric
Long-Term Stock History Chart Of General Electric


Long-Term Dividends History of General Electric (GE)
Long-Term Dividends History of General Electric (GE)


Long-Term Dividend Yield History of General Electric (NYSE GE)
Long-Term Dividend Yield History of General Electric (NYSE GE)

Here is the full table:

Dogs of the Dow
Dogs of the Dow

Related Stock Ticker Symbols:
T, VZ, MRK, PFE, GE, JNJ, PG, DD, CVX, JPM


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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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