10 Best Dow Dividend Stocks for 2012

Note: Total return data includes reinvested dividends and is measured from the date of original publication to the closing price on Nov. 22, 2011.

My Past Recommendations

8 Dow Dividend Stocks Most Likely to Outperform -- Sept. 14, 2010

Tickers: JNJ IBM XOM MMM BA UTX DD KO

Portfolio Performance (dividends reinvested): 14.85%

The 20 Best Performing Stocks (dividends reinvested): 18.65%

30 Stocks, Equally-Weighted (dividends reinvested): 7.02%

Dow Jones Industrial Average ETF (dividends reinvested): 12.21%

Analysis: Pretty good. These eight stocks outperformed the Dow Jones benchmark ETF despite a negative return from 3M and poor showings from Johnson & Johnson and Boeing. IBM powered the returns of the portfolio, and -- as the largest component of the Dow -- the benchmark ETF. Alas, the portfolio fell short of its stated goal: to outperform the Dow's 20 best stocks.

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10 Most Attractively Valued Dow Stocks - Aug. 6, 2010

Tickers: MSFT INTC JNJ GE PFE XOM CSCO IBM HPQ MMM

Portfolio Performance (dividends reinvested): 4.86%

The Other 20 Stocks (dividends reinvested): 7.9%

Dow Jones Industrial Average ETF (dividends reinvested): 11.32%

Analysis: Horrible. That's the best way to describe the performance of this portfolio. But in fairness to the author, this was never presented as a list of stocks to buy. Rather, this article largely explored why these stocks were "attractively valued."

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7 Dow Dividend Stocks Safer Than T-Notes - June 30, 2010

Tickers: PG KO INTC XOM JNJ HD PFE

Portfolio Performance (dividends reinvested): 28.2%

iShares 7-10 Year Treasury Bond Fund (dividends reinvested): 14.48%

Analysis: Excellent. These seven stocks outyielded U.S. Treasury notes (using an iShares ETF as a benchmark proxy) From a total return perspective, the portfolio nearly doubled the performance of the benchmark. Not too shabby considering the amount of stock market volatility during the period.

10 Dow Stocks Investors Should Avoid - June 25, 2010

Tickers: T VZ CVX WMT KFT AA BAC JPM MCD CAT

Portfolio Performance (dividends reinvested): 13.5%

The Other 20 Stocks (dividends reinvested): 11.9%

30 Stocks, Equally-Weighted (dividends reinvested): 12.44%

Dow Jones Industrial Average ETF (dividends reinvested): 16.87%

Analysis: Poor. Had you avoided these 10 stocks, you would have been spared a nightmare stock -- Bank of America -- but denied one of the Dow's best performers: Caterpillar. This portfolio used extremely conservative valuation criteria (10-year average cash flow) that ignored Caterpillar's impressive, recent growth. Lesson learned.

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Each of these lists were constructed using only quantitative criteria (in other words, strictly by the numbers). In the original articles, you will find commentary/analysis that supported or refuted my prima facie valuation.

As a final reminder, this year's picks are screened using quantitative criteria.

>>To see these stocks in action, visit the 10 Best Dow Dividend Stocks for 2012 portfolio on Stockpickr.

-- Written by John DeFeo in New York CityFollow @johndefeo

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