7 Dow Dividend Stocks Safer Than T-Notes

1. Intel

• Liability-Adjusted Cash Flow Yield: 6.6%
• Dividend Yield: 3.09%
• 10-Year Treasury Yield: 2.97%
• Calculated Margin of Safety: 2.22

Intel(INTC), like Microsoft(MSFT), trades more like a bond than a stock. Both companies enjoy a virtual monopoly in their industries and generate healthy cash flows, but the stigma of being a "tech" company that has outgrown its growth phase keeps these stocks in a tight trading range.

While Microsoft has generally dismissed the mobile revolution, Intel has inked a deal to provide Nokia(NOK) with mobile technology which may contribute to growth prospects (and lift Nokia's Finnish foot from the grave). With a LACFY of 6.6%, Intel sports a comfortable margin of safety.

-- Written by John DeFeo in New York CityFollow @johndefeo

>To order reprints of this article, click here: Reprints