BOSTON (TheStreet) -- The Dow has passed 12,000, the highest level in more than two years, and many investors are now feeling as though they missed out on the rally since blue-chip stocks are now fairly valued, or, some might even argue, expensive.
But, that simply isn't the case.
Despite a solid run over the past year, many Dow stocks are trading at huge historical discounts, based on earnings. By recent calculation, 16 of 30 components sell at a discount to their five-year average price-to-earnings ratios. Given such notable bargains, Dow stocks are still attractive.
Here is a look at the 16th to 11th cheapest Dow stocks, on the basis of five-year average P/E.16. Coca-Cola (KO), Trailing P/E: 19.40, Five-Year Average P/E: 20.25, Five-Year Discount: 4% 15. DuPont (DD), Trailing P/E: 15.61, Five-Year Average P/E: 16.78, Five-Year Discount: 7% 14. P&G (PG), Trailing P/E: 17.14, Five-Year Average P/E: 18.96, Five-Year Discount: 10% 13. Wal-Mart (WMT), Trailing P/E: 14.01, Five-Year Average P/E: 15.50, Five-Year Discount: 10% 12. H-P (HPQ), Trailing P/E: 12.61, Five-Year Average P/E: 14.94, Five-Year Discount: 16% 11. J&J (JNJ), Trailing P/E: 12.68, Five-Year Average P/E: 15.33, Five-Year Discount: 17% Now, here are the 10 cheapest Dow dividend stocks, based on the same criteria.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV