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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Dow Dividend Stocks to Lead the Market in 2012

The Best Stock for a Parched State

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Farmers in Texas hope that the drought of 2011 was a one-time event. Crops withered and died, and mud turned to dirt. Chemical giant DuPont (DD) may have just the solution to the prospect of on-and-off droughts. Its AquaMax drought-tolerant corn seed has proven very resilient in the most stressful environments, and farmers are expected to plant it on more than 1.5 million acres in 2012, up from just 100,000 acres this year.

It's that bright outlook for Dupont's Pioneer seed division that has Merrill Lynch calling this stock a top pick for the chemical sector with a $61 price target, roughly 30% ahead of current levels. Merrill concedes that global demand for industrial chemicals, coatings and materials division (which accounts for roughly half of sales) is likely to be just flat in 2012, but the more dynamic agricultural and biosciences divisions merit a more robust multiple. Merrill thinks that "investors are well compensated for an uncertain demand backdrop at 10.5x our 2012 EPS estimate."

What can investors expect in terms of dividends? Well, the payout has been flat at $1.64 a share in 2008, 2009, 2010 and 2011. Yet a dividend hike may be on the way. That's because profits have been rising at a steady pace, from $3.31 a share in 2010, to around $4 a share this year, and a projected $4.35 in 2012. Regardless, DuPont is one of the top-yielding chemicals stocks.

A hike in the payout, which would move the yield up above the current 3.4%, might be another reason to bet on this Dow Dog.

DuPont, which shows up on a recent list of 10 High-Quality Stocks for 2012, was also featured in "5 Big Stocks to Trade for Gains Into 2012."

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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 NOW
Only $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 NOW

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 NOW

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 NOW

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 Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.
Submit an article to us!
DOW 16,661.43 -218.93 -1.30%
S&P 500 1,941.45 -28.62 -1.45%
NASDAQ 4,390.9720 -71.93 -1.61%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs