BOSTON ( TheStreet) -- The Dow Jones Industrial Average has advanced 7.8% so far in 2010, less than half of 2009's 19% increase. The Dow has also trailed the S&P 500 Index and Nasdaq Composite. Some of its components have done even worse. Here are the five worst-performing Dow dividend stocks of 2010. They may continue to underperform the market in 2011. On the other hand, some trade at discounts to comparable investments and may be due for a rebound. Below, they are ordered by 2010 return, from bad to worst.

5. Microsoft ( MSFT) is the world's largest software company, selling the Windows operating system.

Its stock has fallen 15% in 2010, but it has rebounded 8.9% in the past three months. Fiscal first-quarter net income soared 51% to $5.4 billion and earnings per share rocketed 55% to 62 cents, elevated by a smaller float. Revenue grew 25% to $16 billion. The gross margin widened from 83% to 85%. Microsoft has nearly $34 billion of net cash (cash minus debt).

Microsoft's stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 9.4, a sales multiple of 3.3 and a cash flow multiple of 8.3, 69%, 60%, 76% and 53% discounts to software averages.

TheStreet's stock model rates Microsoft "buy" with a target of $29.30, implying 9% upside.

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