The Best 'Dogs Of The Dow' Stocks As Of December 2012
Dividend Yield | Dec 26, 2012 05:37AM ET
One investment strategy I use on a regular basis is the Dogs of the Dow philosophy. The strategy is simple: buy 10 of the highest yielding stocks from the Dow Jones Index list that also have the lowest price-to-earnings ratio at the beginning of the year and to hold these stocks 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 sheet of the current 10 best Dogs of the Dow. The 10 cheapest stocks have an average dividend yield of 3.83 percent as well as a forward P/E ratio of 12.10. The average P/B ratio amounts to 2.38 and P/S ratio is 1.99.
AT&T (T) has a market capitalization of $191.64 billion. The company employs 241,130 people, generates revenue of $126.723 billion and has a net income of $4.184 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27.595 billion. The EBITDA margin is 21.78 percent (the operating margin is 7.27 percent and the net profit margin 3.30 percent).
Financial Analysis: The total debt represents 23.95 percent of the company’s assets and the total debt in relation to the equity amounts to 61.36 percent. Due to the financial situation, a return on equity of 3.63 percent was realized. Twelve trailing months earnings per share reached a value of $0.77. Last fiscal year, the company paid $1.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 43.77, the P/S ratio is 1.51 and the P/B ratio is finally 1.89. The dividend yield amounts to 5.33 percent and the beta ratio has a value of 0.55.
Verizon Communications (NVZ) has a market capitalization of $124.26 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.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.59, the P/S ratio is 1.12 and the P/B ratio is finally 3.43. The dividend yield amounts to 4.73 percent and the beta ratio has a value of 0.50.
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Merck & Co. (MRK) has a market capitalization of $125.92 billion. The company employs 84,000 people, generates revenue of $48.047 billion and has a net income of $6.392 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.478 billion. The EBITDA margin is 32.21 percent (the operating margin is 15.26 percent and the net profit margin 13.30 percent).
Financial Analysis: The total debt represents 16.66 percent of the company’s assets and the total debt in relation to the equity amounts to 32.13 percent. Due to the financial situation, a return on equity of 11.49 percent was realized. Twelve trailing months earnings per share reached a value of $2.20. Last fiscal year, the company paid $1.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.82, the P/S ratio is 2.62 and the P/B ratio is finally 2.31. The dividend yield amounts to 4.15 percent and the beta ratio has a value of 0.64.
The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.83 percent as well as a forward P/E ratio of 12.10. The average P/B ratio amounts to 2.38 and P/S ratio is 1.99.
Here is the full table with fundamental data:
Related Stock Ticker Symbols:
T, VZ, MRK, PFE, GE, JNJ, PG, DD, CVX, JPM
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