Dow Components Ranked by Dividend Risk and Growth

The Dow Jones Industrial Average (DJIA) is one of the leading stock market indicators in the world. The DJIA is the subject of several investing strategies, including the Dogs of the Dow which basically states that a portfolio of the top 10 dividend yielding stocks will outperform the DJIA over the next year. However, the 2011 DOD is currently underperforming. I would offer a new metric to screen for potential Dow investments. Table 1 shows the DOD components selected for 2011 with both the yield at year end 2010 and current dividend yield. Table 1: 2011 Dogs of the Dow Stocks Ticker Name 12/31/2010 Dividend Yield 2/25/2011 Current Dividend Yield Current Dividend Yield Rank T AT&T Inc. 5.9% 6.1% 1 VZ Verizon Communications Inc. 5.5% 5.4% 2 PFE Pfizer, Inc. 4.6% 4.2% 4 MRK Merck & Company, Inc. 4.2% 4.7% 3 KFT Kraft Foods Inc. 3.7% 3.7% 5 JNJ Johnson... Read more