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3 Dow Companies Near Their Year Low: Very Attractive Prices

|Includes: Johnson & Johnson (JNJ), SPY, WMT, XOM

If you are looking for companies that are currently trading near their year low, with P/E and Beta ratio lower than the Market, with a current yield and dividend growth higher than the Market, you should consider those 3 Dow Jones stocks:

Johnson & Johnson (NYSE:JNJ). 
At $58.15, the stock is actually trading at 2.27% higher than its year low of $56.86.

Wal-Mart Stores, Inc. (NYSE:WMT). At $50.40, the stock is actually trading at 5.51% higher than its year low of $47.77.

Exxon Mobil Corporation (NYSE:XOM). At $59.91, the stock is actually trading at 7.10% higher than its year low of $55.94.

At $108.31, The Market (NYSEARCA:SPY)
 is trading at 10.40% higher than its 52-week low of $98.11.

Each one of these 3 stocks has a TTM P/E lower than the Market (SPY) which is currently at 14.29. The TTM P/E is 11.57 for (XOM), 12.01 for (JNJ) and 13.23 for (WMT).

Each one of these 3 stocks has a Beta ratio of 0.60 or less, which signify a theoretical volatility of at least 40% lower than the Market. The Beta ratio of (JNJ) is 0.59, 0.40 for (XOM) and 0.32 for (WMT).

The current yield of (JNJ) is 3.71%, 2.94% for (XOM) and 2.40% for (WMT). In comparison, the current yield of the Market (SPY) is 1.95%.

Let's have a look at the short term past dividend growth for these 3 stocks and for the Market.

(WMT) raised its dividend by 11.85% from the civil year 2009 to 2010, 13.14% from 2008 to 2009 and 12.69% from 2007 to 2008. Actually, the payout ratio is 29.40%. With an annual dividend at $1.21, a TTM EPS of $3.81, the dividend is safe.

(JNJ) raised its dividend by 9.33% from the civil year 2009 to 2010, 7.52% from 2008 to 2009 and 10.80% from 2007 to 2008. Actually, the payout ratio is 41.53%. With an annual dividend at $2.16, a TTM EPS of $4.84, the dividend is safe.

(XOM) raised its dividend by 4.82% from the civil year 2009 to 2010, 7.10% from 2008 to 2009 and 13.14% from 2007 to 2008. Actually, the payout ratio is 32.82%. With an annual dividend at $1.76, a TTM EPS of $5.18, the dividend is safe.

In comparison with the Market, (SPY) raised its dividend by 2.18% from the civil year 2007 to 2008. The dividend decreased by 16.93% from 2008 to 2009, and from 2009 to 2010, the dividend growth is heading to be negative again.

As you can see, if you want to build your wealth with rising dividends and stock appreciation over time, and of course pocket profits from certain spheres of economic activity, these 3 companies, trading at their current prices, are very attractive investment options.



Disclosure: Long in JNJ, WMT, XOM, SPY