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 Cheapest Dow Dividend Stocks for 2011

BOSTON ( TheStreet) -- As investors pour tens of billions of dollars into equities, historically cheap Dow stocks are among the most attractive, offering fat dividends and emerging-markets exposure. Although many people use trailing or forward price-to-earnings ratios as value gauges, cash flow is often more reliable. Here are the 10 cheapest Dow dividend stocks, based on cash flow per share. Below, they are ordered from cheap to cheapest.

10. Intel (INTC) is the world's largest chipmaker. Fourth-quarter profit advanced 48% to $3.4 billion, or 59 cents a share. Revenue rose 8.4% to more than $11 billion. The operating margin widened from 35% to 38%. Intel's fourth quarter was the most profitable in company history. Still, its stock is historically undervalued, selling for a trailing earnings multiple of just 10, a 53% discount to the stock's five-year average of 22. Its forward earnings multiple of 9.5 reflects a 42% discount. Roughly 60% of analysts rate Intel "buy." Credit Suisse expects the stock to advance 33% to $28. Intel yields 3% and has grown its payout 15% a year over a five-year span.


9. Wal-Mart (WMT) is not only the world's largest retailer, but the world's biggest company, based on sales. It is scheduled to release fiscal fourth-quarter results Feb. 22. Fiscal third-quarter net income increased 9.3% to $3.4 billion, but earnings per share climbed 16% to 95 cents, boosted by a lower share count. The operating margin remained steady at 5.5%. Wal-Mart's stock trades at a forward earnings multiple of 13, a 21% peer discount. Its trailing earnings multiple of 14 reflects a 12% discount to the five-year average. Wal-Mart receives "buy" ratings from 68% of analysts. HSBC, second most-accurate Wal-Mart forecaster of 2010, expects a rise of 23% to $68 in 2011.

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
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
SYM TRADE IT LAST %CHG
AA $11.10 0.00%
AXP $78.21 0.00%
BAC $17.03 0.00%
CVX $95.87 0.00%
GE $26.78 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs