Dogs Of The Dow January Overview

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 |  Includes: DD, GE, INTC, JNJ, MDLZ, MRK, PFE, PG, T, VZ
by: Dividend Screen

Investors who have a clear investment strategy have a competitive advantage. They follow rules with a more or less success. One popular and most discussed strategy is the Dogs of the Dow Theory by Michael O'Higgins. The strategy is to buy 10 stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no longer Dogs of the Dow and buy new Dogs of the Dow.

Compared to the previous results of the Dogs of the Dow a month before, nothing has changed. The best yielding stocks are still AT&T (NYSE:T) and Verizon (NYSE:VZ). The cheapest stocks in terms of forward P/E are Pfizer (NYSE:PFE) and Merck (NYSE:MRK). Pfizer, General Electric and Kraft Foods are the only stocks with strong buy recommendations. All others have buy ratings outstanding. Here is an updated detailed view on the Dogs of the Dow:

1. AT&T Inc. (T) has a market capitalization of $179.02 billion. The company employs 256,210 people, generates revenues of $124,280.00 million and has a net income of $19,400.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $38,952.00 million. Because of these figures, the EBITDA margin is 31.34 percent (operating margin 15.75 percent and the net profit margin finally 15.61 percent).

The total debt representing 24.64 percent of the company's assets and the total debt in relation to the equity amounts to 59.26 percent. Due to the financial situation, a return on equity of 17.90 percent was realized. Twelve trailing months earnings per share reached a value of $1.97. Last fiscal year, the company paid $1.69 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.33, Price/Sales 1.44 and Price/Book ratio 1.60. Dividend Yield: 5.85 percent. The beta ratio is 0.59.

2. Verizon Communications (VZ) has a market capitalization of $106.81 billion. The company employs 193,900 people, generates revenues of $110,875.00 million and has a net income of $10,198.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,376.00 million. Because of these figures, the EBITDA margin is 26.49 percent (operating margin 11.62 percent and the net profit margin finally 9.20 percent).

The total debt representing 23.93 percent of the company's assets and the total debt in relation to the equity amounts to 153.33 percent. Due to the financial situation, a return on equity of 6.45 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.98 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 44.51, Price/Sales 0.96 and Price/Book ratio 2.97. Dividend Yield: 5.29 percent. The beta ratio is 0.55.

3. Merck & Co. (MRK) has a market capitalization of $117.89 billion. The company employs 90,000 people, generates revenues of $45,987.00 million and has a net income of $982.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,250.00 million. Because of these figures, the EBITDA margin is 20.11 percent (operating margin 3.59 percent and the net profit margin finally 2.14 percent).

The total debt representing 16.90 percent of the company's assets and the total debt in relation to the equity amounts to 32.89 percent. Due to the financial situation, a return on equity of 1.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.46. Last fiscal year, the company paid $1.52 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 26.42, Price/Sales 2.57 and Price/Book ratio 2.20. Dividend Yield: 4.33 percent. The beta ratio is 0.67.

4. Pfizer (PFE) has a market capitalization of $166.96 billion. The company employs 110,600 people, generates revenues of $67,809.00 million and has a net income of $8,298.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,306.00 million. Because of these figures, the EBITDA margin is 28.47 percent (operating margin 13.89 percent and the net profit margin finally 12.24 percent).

The total debt representing 22.58 percent of the company's assets and the total debt in relation to the equity amounts to 50.14 percent. Due to the financial situation, a return on equity of 9.30 percent was realized. Twelve trailing months earnings per share reached a value of $1.27. Last fiscal year, the company paid $0.72 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 17.10, Price/Sales 2.46 and Price/Book ratio 1.98. Dividend Yield: 4.06 percent. The beta ratio is 0.72.

5. General Electric Company (NYSE:GE) has a market capitalization of $201.96 billion. The company employs 300,000 people, generates revenues of $147,300.00 million and has a net income of $14,366.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,098.00 million. Because of these figures, the EBITDA margin is 13.64 percent (operating margin 13.64 percent and the net profit margin finally 9.75 percent).

The total debt representing 63.21 percent of the company's assets and the total debt in relation to the equity amounts to 389.52 percent. Due to the financial situation, a return on equity of 11.09 percent was realized. Twelve trailing months earnings per share reached a value of $1.23. Last fiscal year, the company paid $0.61 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.59, Price/Sales 1.37 and Price/Book ratio 1.74. Dividend Yield: 3.61 percent. The beta ratio is 1.61.

6. Johnson & Johnson (NYSE:JNJ) has a market capitalization of $178.11 billion. The company employs 117,000 people, generates revenues of $65,030.00 million and has a net income of $9,672.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,841.00 million. Because of these figures, the EBITDA margin is 19.75 percent (operating margin 19.01 percent and the net profit margin finally 14.87 percent).

The total debt representing 44.98 percent of the company's assets and the total debt in relation to the equity amounts to 81.74 percent. Due to the financial situation, a return on equity of 19.18 percent was realized. Twelve trailing months earnings per share reached a value of $3.48. Last fiscal year, the company paid $2.25 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.73, Price/Sales 2.74 and Price/Book ratio 2.9. Dividend Yield: 3.51 percent. The beta ratio is 0.54.

7. E I Du Pont De Nemours (NYSE:DD) has a market capitalization of $46.85 billion. The company employs 60,000 people, generates revenues of $38,719.00 million and has a net income of $3,510.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,289.00 million. Because of these figures, the EBITDA margin is 16.24 percent (operating margin 11.06 percent and the net profit margin finally 9.07 percent).

The total debt representing 25.89 percent of the company's assets and the total debt in relation to the equity amounts to 146.08 percent. Due to the financial situation, a return on equity of 39.94 percent was realized. Twelve trailing months earnings per share reached a value of $3.68. Last fiscal year, the company paid $1.64 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.75, Price/Sales 1.21 and Price/Book ratio 5.61. Dividend Yield: 3.32 percent. The beta ratio is 1.46.

8. The Procter & Gamble Company (NYSE:PG) has a market capitalization of $178.78 billion. The company employs 129,000 people, generates revenues of $82,559.00 million and has a net income of $11,797.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,656.00 million. Because of these figures, the EBITDA margin is 22.60 percent (operating margin 19.16 percent and the net profit margin finally 14.29 percent).

The total debt representing 23.14 percent of the company's assets and the total debt in relation to the equity amounts to 47.33 percent. Due to the financial situation, a return on equity of 18.32 percent was realized. Twelve trailing months earnings per share reached a value of $3.94. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.51, Price/Sales 2.17 and Price/Book ratio 2.71. Dividend Yield: 3.26 percent. The beta ratio is 0.43.

9. Intel Corporation (NASDAQ:INTC) has a market capitalization of $136.97 billion. The company employs 100,100 people, generates revenues of $53,999.00 million and has a net income of $12,942.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,541.00 million. Because of these figures, the EBITDA margin is 43.60 percent (operating margin 32.37 percent and the net profit margin finally 23.97 percent).

The total debt representing 10.31 percent of the company's assets and the total debt in relation to the equity amounts to 15.97 percent. Due to the financial situation, a return on equity of 27.15 percent was realized. Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, the company paid $0.78 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 11.22, Price/Sales 2.54 and Price/Book ratio 2.98. Dividend Yield: 3.12 percent. The beta ratio is 1.10.

10. Kraft Foods (KFT) has a market capitalization of $67.79 billion. The company employs 127,000 people, generates revenues of $49,207.00 million and has a net income of $2,495.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,839.00 million. Because of these figures, the EBITDA margin is 13.90 percent (operating margin 11.00 percent and the net profit margin finally 5.07 percent).

The total debt representing 30.14 percent of the company's assets and the total debt in relation to the equity amounts to 80.16 percent. Due to the financial situation, a return on equity of 8.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, the company paid $1.16 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 20.95, Price/Sales 1.38 and Price/Book ratio 1.87. Dividend Yield: 3.03 percent. The beta ratio is 0.55.

Disclosure: I am long JNJ, GE, PG.