This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Worst Dow Dividend Stocks of 2010

BOSTON ( TheStreet) -- The Dow Jones Industrial Average has advanced 7.8% so far in 2010, less than half of 2009's 19% increase. The Dow has also trailed the S&P 500 Index and Nasdaq Composite. Some of its components have done even worse. Here are the five worst-performing Dow dividend stocks of 2010. They may continue to underperform the market in 2011. On the other hand, some trade at discounts to comparable investments and may be due for a rebound. Below, they are ordered by 2010 return, from bad to worst.

5. Microsoft (MSFT - Get Report) is the world's largest software company, selling the Windows operating system.

Its stock has fallen 15% in 2010, but it has rebounded 8.9% in the past three months. Fiscal first-quarter net income soared 51% to $5.4 billion and earnings per share rocketed 55% to 62 cents, elevated by a smaller float. Revenue grew 25% to $16 billion. The gross margin widened from 83% to 85%. Microsoft has nearly $34 billion of net cash (cash minus debt).

Microsoft's stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 9.4, a sales multiple of 3.3 and a cash flow multiple of 8.3, 69%, 60%, 76% and 53% discounts to software averages.

TheStreet's stock model rates Microsoft "buy" with a target of $29.30, implying 9% upside.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AA $9.48 1.28%
BAC $17.81 2.18%
CSCO $27.57 1.17%
HPQ $12.74 1.59%
MSFT $55.22 1.60%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs