Each month, I screen the market by the current Dogs of the Dow Jones. The strategy “Dogs of the Dow” is an often-mentioned and well-known tool for investors who don’t know what kind of assets are cheap on the market.
The philosophy 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, therefore, buy new Dogs of the Dow.
Below is an updated sheet of the 10 best Dogs of the Dow. Such stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index.
I’ve no idea if those stocks are really good investments. If I look at the current results, I would only buy a few of them but not all. For sure, every investor needs a clear strategy to follow and it's very easy to stop thinking and doing research when you put the best dogs into your portfolio each year.
I truly believe that this strategy is also no guarantee for better returns but you can get new ideas for your asset allocation. The more often your target investment appears on your daily screens, the more attractive is the company.
The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.53% as well as a forward P/E ratio of 11.98. The average P/B ratio amounts to 2.76 and the P/S ratio is 2.40.
Here are the results with highest expected earnings growth:
General Electric (GE) has a market capitalization of $230.95 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 $28.367 billion. The EBITDA margin is 19.25% (the operating margin is 11.81% and the net profit margin is 10.11%).
Financial Analysis: The total debt represents 60.42% of the company’s assets and the total debt in relation to the equity amounts to 336.56%. Due to the financial situation, a return on equity of 12.24% 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. Earnings are expected to grow by 11.17% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.52, the P/S ratio is 1.54 and the P/B ratio is 1.86. The dividend yield amounts to 3.46% and the beta ratio has a value of 1.67.
Intel Corporation (INTC) has a market capitalization of $115.74 billion. The company employs 105,400 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54% (the operating margin is 27.44% and the net profit margin is 20.63%).
Financial Analysis: The total debt represents 15.94% of the company’s assets and the total debt in relation to the equity amounts to 26.26%. Due to the financial situation, a return on equity of 22.66% was realized. Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders. Earnings are expected to grow by 10.83% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.67, the P/S ratio is 2.17 and the P/B ratio is 2.26. The dividend yield amounts to 3.85% and the beta ratio has a value of 1.02.
Microsoft (MSFT) has a market capitalization of $265.48 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67% (the operating margin is 29.92% and the net profit margin 23.03%).
Financial Analysis: The total debt represents 9.85% of the company’s assets and the total debt in relation to the equity amounts to 18%. Due to the financial situation, a return on equity of 27.51% was realized. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. Earnings are expected to grow by 8.53% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.38, the P/S ratio is 3.62 and the P/B ratio is 4.03. The dividend yield amounts to 2.88% and the beta ratio has a value of 0.96.
Take a closer look at the Dogs of the Dow. The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.53% as well as a forward P/E ratio of 11.98. The average P/B ratio amounts to 2.76 and the P/S ratio is 2.40.
Dogs of the Dow Jones originally published on “long-term-investments.blogspot.com.”
Related Stock Ticker Symbols:
T, INTC, VZ, MRK, GE, CSCO, DD, PFE, JPM, MSFT
Selected Articles:
· The Safest Consumer Dividend Stocks | 20 Exclusive Shares
· 7 Dividend Aristocrats With The Highest Payout Potential
· 100 Guru Stock Buy List | The Most Bought Stocks
· Best Dividend Paying Stock List | 27 Big Income Growers
*Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook orTwitter
The philosophy 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, therefore, buy new Dogs of the Dow.
Below is an updated sheet of the 10 best Dogs of the Dow. Such stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index.
I’ve no idea if those stocks are really good investments. If I look at the current results, I would only buy a few of them but not all. For sure, every investor needs a clear strategy to follow and it's very easy to stop thinking and doing research when you put the best dogs into your portfolio each year.
I truly believe that this strategy is also no guarantee for better returns but you can get new ideas for your asset allocation. The more often your target investment appears on your daily screens, the more attractive is the company.
The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.53% as well as a forward P/E ratio of 11.98. The average P/B ratio amounts to 2.76 and the P/S ratio is 2.40.
Here are the results with highest expected earnings growth:
General Electric (GE) has a market capitalization of $230.95 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 $28.367 billion. The EBITDA margin is 19.25% (the operating margin is 11.81% and the net profit margin is 10.11%).
Financial Analysis: The total debt represents 60.42% of the company’s assets and the total debt in relation to the equity amounts to 336.56%. Due to the financial situation, a return on equity of 12.24% 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. Earnings are expected to grow by 11.17% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.52, the P/S ratio is 1.54 and the P/B ratio is 1.86. The dividend yield amounts to 3.46% and the beta ratio has a value of 1.67.
Intel Corporation (INTC) has a market capitalization of $115.74 billion. The company employs 105,400 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54% (the operating margin is 27.44% and the net profit margin is 20.63%).
Financial Analysis: The total debt represents 15.94% of the company’s assets and the total debt in relation to the equity amounts to 26.26%. Due to the financial situation, a return on equity of 22.66% was realized. Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders. Earnings are expected to grow by 10.83% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.67, the P/S ratio is 2.17 and the P/B ratio is 2.26. The dividend yield amounts to 3.85% and the beta ratio has a value of 1.02.
Microsoft (MSFT) has a market capitalization of $265.48 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67% (the operating margin is 29.92% and the net profit margin 23.03%).
Financial Analysis: The total debt represents 9.85% of the company’s assets and the total debt in relation to the equity amounts to 18%. Due to the financial situation, a return on equity of 27.51% was realized. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. Earnings are expected to grow by 8.53% for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.38, the P/S ratio is 3.62 and the P/B ratio is 4.03. The dividend yield amounts to 2.88% and the beta ratio has a value of 0.96.
Take a closer look at the Dogs of the Dow. The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.53% as well as a forward P/E ratio of 11.98. The average P/B ratio amounts to 2.76 and the P/S ratio is 2.40.
Dogs of the Dow Jones originally published on “long-term-investments.blogspot.com.”
Related Stock Ticker Symbols:
T, INTC, VZ, MRK, GE, CSCO, DD, PFE, JPM, MSFT
Selected Articles:
· The Safest Consumer Dividend Stocks | 20 Exclusive Shares
· 7 Dividend Aristocrats With The Highest Payout Potential
· 100 Guru Stock Buy List | The Most Bought Stocks
· Best Dividend Paying Stock List | 27 Big Income Growers
*Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook orTwitter
