This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

8 Cheapest Dow Dividend Stocks for 2011

Stocks in this article: JPM TRV MSFT HPQ CVX BAC PFE

4. Hewlett-Packard (HPQ - Get Report) sells computer hardware and servers as well as consulting services.

Quarter: Fiscal fourth-quarter net income ascended 5.2% to $2.5 billion. Earnings per share increased 11% to $1.10, helped by a smaller float. Revenue grew 8.1% to $33 billion. The gross margin extended from 26% to 27%, but the operating margin hovered at 11%. The balance sheet stored $11 billion of cash and $22 billion of debt at quarter's end, converting to quick ratio of 0.7 and a debt-to-equity ratio of 0.6. HP's 12-month sales have grown 10%.

Valuation: HP's stock sells for a forward earnings multiple of 7.4, a book value multiple of 2.4, a sales multiple of 0.8 and a cash flow multiple of 8.2, 52%, 49%, 76% and 38% discounts to computers and peripherals industry averages. Its PEG ratio of 0.3 reflects a 70% discount to estimated fair value. HP's trailing earnings multiple of 12 represents a 46% discount to the industry average and a 23% discount to the five-year average earnings multiple of 15.

Dividend: Hewlett-Packard pays a quarterly dividend of eight cents, converting to a one-year yield of 0.8% with a payout ratio of just 9%. The board has kept the quarterly dividend steady at eight cents since 1998.

5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs