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.