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

8 Cheapest Dow Dividend Stocks for 2011

2. Bank of America (BAC - Get Report) is a financial-services company. It's the top mortgage lender in the U.S.

Quarter: Bank of America's third-quarter loss widened to $7.3 billion, or 77 cents a share, hurt by a goodwill impairment charge in its credit card business due to a new regulatory rule. The company swung to an adjusted profit of $3.1 billion, or 27 cents, from a year-ago loss. Revenue fell 2%. The gross margin jumped from 43% to 66% and the operating margin climbed from 11% to 31%. Bank of America has $840 billion of debt, equal to a debt-to-equity ratio of 3.6.

Valuation: Bank of America's stock sells for a forward earnings multiple of 7.6, a book value multiple of 0.5, a sales multiple of 0.8 and a cash flow multiple of 1, 32%, 42%, 51% and 95% discounts to diversified financial services industry averages. Bank of America is selling at a discount to its five-year average earnings multiple of 15 and its profit spreads consistently exceed peer averages. The company's shares have fallen 22% in 2010 amid mortgage regulatory scrutiny.

Dividend: Bank of America pays a quarterly dividend of one cent, converting to a paltry yield of 0.3%. Its dividend was cut from a high of 68 cents during the recession as the bank accepted federal TARP money.
7 of 8

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
BAC $15.53 -1.40%
CVX $89.16 -0.83%
JPM $61.70 -0.70%
HPQ $29.50 1.10%
MSFT $47.06 -0.82%


Chart of I:DJI
DOW 17,057.93 +7.18 0.04%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,826.9350 +16.1470 0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs