Dogs Of The Dow Jones: These Are The Cheapest Index Members

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May 15, 2015

In the past, I've written more about cheap stocks. Due to the current market situation, there is a huge problem in discovering cheap stocks. Today, we classify stocks with a P/E multiple of less than 20 as cheap.

That's a risky way. Your expected yield will not be high, but in the current situation, it's the cheapest play in the market.

Today I'd like to talk about the good old Dogs of the Dow Theory. Those are the 10 cheapest stocks of the Dow Jones index.

These are the results in detail:

AT&T (T, Financial) -- Yield: 5.61%Â AT&T employs 253,000 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $173.39 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).

Financials: The total debt represents 28.03% of AT&T assets and the total debt in relation to the equity amounts to 95.02%. Due to the financial situation, a return on equity of 7.02% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $1.11. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.10, the P/S ratio is 1.31 and the P/B ratio is finally 2.01. The dividend yield amounts to 5.61%. - Read more here: Dogs Of The Dow Jones: These Are The Cheapest Index Members...