STOCKS TO BUY: We have identified several stocks that can potentially TRIPLE. Learn more!

10 Best Dow Dividend Stocks for 2012

Stock quotes in this article: MCD, KO, CAT, UTX, PG, IBM, MMM, XOM, JNJ, HPQ 

10. McDonald's

Liability Adjusted Cash Flow Yield: 3.2%

Dividend Yield: 3%

LACFY/10-Year Treasury Yield: 1.55

Return on Invested Capital: 15%

It's hard to imagine that McDonald's (MCD) traded for less than $13 per share as recently as 2003. As this stock approaches the $100 mark, investors are left to wonder if McDonald's is one of Benjamin Graham's "goodwill giants" (a stock so ingrained in American culture, that it can march upward indefinitely) -- or, if changing consumer tastes (for instance, a move toward healthier eating) will one day derail the world's leading burger magnate.

In June 2010, I called McDonald's an "indefinite hold" -- not much has changed since then. This stock is not particularly cheap, but continues to deliver impressive returns on invested capital; all the more admirable for an industry susceptible to commodity inflation and breathable margins.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
TRY IT FREE
New! $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
TRY IT FREE

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass + 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 15,286.84 -31.39 -0.20%
NASDAQ 3,476.20 -5.98 -0.17%
S&P 500 1,650.00 -1.81 -0.11%
US 10 Yr 2.212% +0.030

Brokerage Partners

Advertising Partners
Special Features

Free Newsletters from TheStreet

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy. Manage Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs