Solid Dow Dividends
0.83%March 27 | MyPlanIQ portfolio symbol P_35684

Solid Dow Dividends With Little European Exposure

Dow dividend stocks that could weather a eurozone meltdown, He wanted to throw out those with yields that were puny. He did this by eliminating from consideration any company that didn't at least offer its shareholders a 2.5% yield. In addition, he checked out the company's dividend payout ratio and eliminated all companies with payout ratios above 80%.

Company

Dividend Yield

Payout Ratio

3M (NYSE: MMM) 2.9% 37%
Boeing (NYSE: BA) 2.7% 33%
Chevron (NYSE: CVX) 3.5% 22%
Coca-Cola (NYSE: KO) 2.9% 34%
DuPont (NYSE: DD) 3.7% 45%
ExxonMobil (NYSE: XOM) 2.5% 22%
General Electric (NYSE: GE) 4.1% 48%
Home Depot (NYSE: HD) 3.2% 43%
Intel (Nasdaq: INTC) 3.7% 32%
Johnson & Johnson (NYSE: JNJ) 3.7% 54%
JPMorgan Chase (NYSE: JPM) 3.5% 13%
Kraft (NYSE: KFT) 3.4% 64%
McDonald's (NYSE: MCD) 3% 48%
Microsoft (NYSE: MSFT) 3.3% 23%
Pfizer (NYSE: PFE) 4.3% 54%
Procter & Gamble (NYSE: PG) 3.4% 51%
Travelers (NYSE: TRV) 3.1% 41%
United Technologies (NYSE: UTX) 2.7% 34%
Wal-Mart (NYSE: WMT) 2.6% 30%

Source: Yahoo! Finance.

To further refine the list, we want to eliminate those with too much European exposure. Wal-Mart, Travelers, and Microsoft didn't offer detailed enough information on European exposure in their reports, so they were thrown out of the equation for this exercise. Of the remaining 16 companies, here is how they stacked up, listed from least to most European exposure.


Company Payout Ratio Dividend Yield % of European Revenue  2010
Home Depot (NYSE: HD)  3.20% 43% 0%
Chevron (NYSE: CVX)  3.50% 22% 7%
Boeing (NYSE: BA)  2.70% 33% 12%
Intel (Nasdaq: INTC)  3.70% 32% 13%
Coca-Cola (NYSE: KO)  2.90% 34% 15%
ExxonMobil (NYSE: XOM)  2.50% 22% 21%
General Electric (NYSE: GE)  4.10% 48% 21%
3M (NYSE: MMM)  2.90% 37% 23%
Kraft (NYSE: KFT)  3.40% 64% 24%
United Technologies (NYSE: UTX)  2.70% 34% 25%
DuPont (NYSE: DD)  3.70% 45% 26%
Johnson & Johnson (NYSE: JNJ)  3.70% 54% 26%
JPMorgan Chase (NYSE: JPM)  3.50% 13% 28%
Pfizer (NYSE: PFE)  4.30% 54% 28%
Procter & Gamble (NYSE: PG)  3.40% 51% 34%
McDonald's (NYSE: MCD)  3% 48% 40%
Microsoft (NYSE: MSFT)  3.30% 23% Unknown
Wal-Mart (NYSE: WMT)  2.60% 30% Unknown
Travelers (NYSE: TRV)  3.10% 41% Unknown


This is an interesting filter but there is a caveat -- does the European metldown apply to these companies. Alternatively, will management in these companies be able to shift emphasis and reduce cost in the Eurozone, should that be necessary and offset this with increased focus in emerging markets. In all likelihood, they have done this already.

So, I am going to first of all compare the whole set of 19 stocks with our reference benchmark before we look at where to draw the line with European exposure. We will compare this with our dividend ETF benchmark.

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From 06/11/2004 to 03/27/2024, the worst annualized return of 3-year rolling returns is -13.04%.

From 06/11/2004 to 03/27/2024, the worst annualized return of 5-year rolling returns is -7.51%.

From 06/11/2004 to 03/27/2024, the worst annualized return of 10-year rolling returns is -0.11%.

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