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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Dow Dividend Stocks Fail 'Acid Test'

7. IBM (IBM)

International Business Machines is a globally integrated enterprise, which creates business value for clients and solves business problems through integrated solutions that leverage information technology and deep knowledge of business processes. (more >>)

  • Liability Adjusted Cash Flow Yield: 5.3%
  • Dividend Yield: 1.97%
  • Coverage Ratio: 2.69
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 28.4%

6. Hewlett-Packard (HPQ)

Hewlett-Packard is a global provider of products, technologies, software, solutions and services to individual consumers, small and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. (more >>)

  • Liability Adjusted Cash Flow Yield: 5.3%
  • Dividend Yield: 0.8%
  • Coverage Ratio: 6.63
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 19.9%

5. Pfizer (PFE)

Pfizer is a research-based global pharmaceutical company which discovers, develops, manufactures and markets prescription medicines for humans and animals. (more >>)

  • Liability Adjusted Cash Flow Yield: 5.4%
  • Dividend Yield: 4.2%
  • Coverage Ratio: 1.29
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 18.9%

4. Johnson & Johnson (JNJ)

Johnson & Johnson is a holding company engaged in the research and development, manufacture and sale of a range of products in the health care field. (more >>)

  • Liability Adjusted Cash Flow Yield: 5.6%
  • Dividend Yield: 3.49%
  • Coverage Ratio: 1.6
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 22.8%

3. General Electric (GE)

General Electric provides services ranging from aircraft engines, power generation, water processing and household appliances to medical imaging, business and consumer financing, media content and industrial products. (more >>)

  • Liability Adjusted Cash Flow Yield: 5.8%
  • Dividend Yield: 2.91%
  • Coverage Ratio: 1.99
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 11.5%

2. Intel (INTC)

Intel is a semiconductor chip maker, which develops advanced integrated digital technology products, mainly integrated circuits, for industries such as computing and communications. (more >>)

  • Liability Adjusted Cash Flow Yield: 7.1%
  • Dividend Yield: 3.29%
  • Coverage Ratio: 2.16
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 28.1%

1. Microsoft (MSFT)

Microsoft generates revenue by developing, manufacturing, licensing, and supporting a wide range of software products and services for many different types of computing devices. (more >>)

  • Liability Adjusted Cash Flow Yield: 7.6%
  • Dividend Yield: 2.07%
  • Coverage Ratio: 3.67
  • Dividend Acid Test: PASS
  • 5-Year Tax Rate: 27.4%

-- Written by John DeFeo in New York City


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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