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.
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