This Day On The Street
Continue to site
ADVERTISEMENT
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

10 Best Dow Dividend Stocks for 2011

3. Chevron (CVX - Get Report) is the world's second-largest energy company. Its rival is Exxon (XOM).

12-Month Sales Growth: 20%
12-Month Net Income Growth: 36%
Quarterly Operating Profit Margin: 12%
Cash Flow Multiple: 5.8 (35% peer discount)
Analysts' Median Target: $95.86
3-Year Dividend Growth: 7.9%
Dividend Yield: 3.3%
Payout Ratio: 34%

2011 Catalyst: Like Microsoft, Chevron offers a compelling risk-reward proposition, given its size, management and competitive position.

Its trailing earnings multiple of 10, forward earnings multiple of 8.9, book value multiple of 1.7, sales multiple of 0.9 and cash flow multiple of 5.8 represent discounts of 46%, 58%, 59%, 70% and 35% to oil and gas industry averages. Its PEG ratio, a measure of value relative to predicted long-run growth, of 0.1 reflects a 90% discount to estimated long-term fair value.

With oil above $90 a barrel and predicted by some to pass $100 in 2011, Chevron's margins will elevate, amplifying its net income and earnings per share.

Bullish Scenario: Barclays values Chevron's stock at $107, suggesting 23% of upside.

Bearish Scenario: Deutsche Bank expects Chevron's shares to drop 8% to $80.

9 of 11

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
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!
SYM TRADE IT LAST %CHG
CVX $109.87 0.00%
HPQ $33.26 0.00%
JPM $62.60 0.00%
KO $40.89 0.00%
MRK $57.60 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs