In the past, I've written more
about cheap stocks. Due to the current market situation, there is a huge
problem to discover cheap stocks. Today we classify stocks with a P/E multiple
of less than 20 as cheap.
That's a risky
way. Your expected yield will not be high but in the current situation, it's
the cheapest play in the market.
Today I like to
talk about the good old Dogs of the Dow Theory. Those are the 10 cheapest stocks of the Dow Jones index.
AT&T -- Yield: 5.61%
AT&T (NYSE:T) employs 253,000 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $173.39 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).
Financials: The total debt represents 28.03% of AT&T assets and the total debt in relation to the equity amounts to 95.02%. Due to the financial situation, a return on equity of 7.02% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $1.11. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.10, the P/S ratio is 1.31 and the P/B ratio is finally 2.01. The dividend yield amounts to 5.61%.
Stock Charts:
Long-Term Stock Price Chart of AT&T (T) |
Long-Term Dividend Payment History of AT&T (T) |
Long-Term Dividend Yield History of AT&T (T) |
Verizon -- Yield: 4.42%
Verizon (NYSE:VZ) employs 176,200 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $201.93 billion.Verizon’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).
Financials: The total debt represents 48.68% of Verizon assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon.
Twelve trailing months earnings per share reached a value of $2.39. Last fiscal year, Verizon paid $2.14 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.71, the P/S ratio is 1.60 and the P/B ratio is finally 16.83. The dividend yield amounts to 4.42%.
Stock Charts:
Long-Term Stock Price Chart of Verizon (VZ) |
Long-Term Dividend Payment History of Verizon (VZ) |
Long-Term Dividend Yield History of Verizon (VZ) |
Chevron -- Yield: 3.99%
Chevron (NYSE:CVX) employs 64,700 people, generates revenue of $199,941.00 million and has a net income of $19,310.00 million. The current market capitalization stands at $201.94 billion.Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,359.00 million. The EBITDA margin is 20.19% (the operating margin is 11.79% and the net profit margin 9.66%).
Financials: The total debt represents 10.46% of Chevron assets and the total debt in relation to the equity amounts to 17.94%. Due to the financial situation, a return on equity of 12.65% was realized by Chevron.
Twelve trailing months earnings per share reached a value of $9.14. Last fiscal year, Chevron paid $4.21 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.75, the P/S ratio is 1.01 and the P/B ratio is finally 1.30. The dividend yield amounts to 3.99%.
Stock Charts:
Long-Term Stock Price Chart of Chevron (CVX) |
Long-Term Dividend Payment History of Chevron (CVX) |
Long-Term Dividend Yield History of Chevron (CVX) |
McDonald's Corporation -- Yield: 3.49%
McDonald's Corporation (NYSE:MCD) employs 420,000 people, generates revenue of $27,441.30 million and has a net income of $4,757.80 million. The current market capitalization stands at $93.42 billion.McDonald's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,483.60 million. The EBITDA margin is 34.56% (the operating margin is 28.97% and the net profit margin 17.34%).
Financials: The total debt represents 43.73% of McDonald's Corporation assets and the total debt in relation to the equity amounts to 116.62%. Due to the financial situation, a return on equity of 32.97% was realized by McDonald's Corporation.
Twelve trailing months earnings per share reached a value of $4.45. Last fiscal year, McDonald's Corporation paid $3.28 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.89, the P/S ratio is 3.41 and the P/B ratio is finally 7.30. The dividend yield amounts to 3.49%.
Stock Charts:
Long-Term Stock Price Chart of McDonald's Corporation (MCD) |
Long-Term Dividend Payment History of McDonald's Corporation (MCD) |
Long-Term Dividend Yield History of McDonald's Corporation (MCD) |
General Electric -- Yield: 3.42%
General Electric (NYSE:GE) employs 305,000 people, generates revenue of $148,589.00 million and has a net income of $15,457.00 million. The current market capitalization stands at $270.34 billion.General Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,386.00 million. The EBITDA margin is 19.78% (the operating margin is 12.33% and the net profit margin 10.40%).
Financials: The total debt represents 56.33% of General Electric assets and the total debt in relation to the equity amounts to 284.39%. Due to the financial situation, a return on equity of 11.85% was realized by General Electric.
Twelve trailing months earnings per share reached a value of $0.11. Last fiscal year, General Electric paid $0.89 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 237.43, the P/S ratio is 1.83 and the P/B ratio is finally 2.11. The dividend yield amounts to 3.42%.
Stock Charts:
Long-Term Stock Price Chart of General Electric (GE) |
Long-Term Dividend Payment History of General Electric (GE) |
Long-Term Dividend Yield History of General Electric (GE) |
Exxon Mobil -- Yield: 3.36%
Exxon Mobil (NYSE:XOM) employs 75,300 people, generates revenue of $394,105.00 million and has a net income of $33,615.00 million. The current market capitalization stands at $363.84 billion.Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51,379.00 million. The EBITDA margin is 13.04% (the operating margin is 8.65% and the net profit margin 8.53%).
Financials: The total debt represents 8.33% of Exxon Mobil assets and the total debt in relation to the equity amounts to 16.70%. Due to the financial situation, a return on equity of 18.67% was realized by Exxon Mobil.
Twelve trailing months earnings per share reached a value of $6.66. Last fiscal year, Exxon Mobil paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.07, the P/S ratio is 0.92 and the P/B ratio is finally 2.09. The dividend yield amounts to 3.36%.
Stock Charts:
Long-Term Stock Price Chart of Exxon Mobil (XOM) |
Long-Term Dividend Payment History of Exxon Mobil (XOM) |
Long-Term Dividend Yield History of Exxon Mobil (XOM) |
Pfizer -- Yield: 3.30%
Pfizer (NYSE:PFE) employs 78,300 people, generates revenue of $49,605.00 million and has a net income of $9,120.00 million. The current market capitalization stands at $208.07 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,198.00 million. The EBITDA margin is 40.72% (the operating margin is 25.66% and the net profit margin 18.39%).
Financials: The total debt represents 21.67% of Pfizer assets and the total debt in relation to the equity amounts to 51.45%. Due to the financial situation, a return on equity of 12.32% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.45. Last fiscal year, Pfizer paid $1.04 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.37, the P/S ratio is 4.22 and the P/B ratio is finally 3.00. The dividend yield amounts to 3.30%.
Stock Charts:
Long-Term Stock Price Chart of Pfizer (PFE) |
Long-Term Dividend Payment History of Pfizer (PFE) |
Long-Term Dividend Yield History of Pfizer (PFE) |
Coca-Cola -- Yield: 3.22%
Coca-Cola (NYSE:KO) employs 129,200 people, generates revenue of $45,998.00 million and has a net income of $7,124.00 million. The current market capitalization stands at $177.66 billion.Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,474.00 million. The EBITDA margin is 27.12% (the operating margin is 21.04% and the net profit margin 15.49%).
Financials: The total debt represents 45.36% of Coca-Cola assets and the total debt in relation to the equity amounts to 137.68%. Due to the financial situation, a return on equity of 22.36% was realized by Coca-Cola.
Twelve trailing months earnings per share reached a value of $1.58. Last fiscal year, Coca-Cola paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.74, the P/S ratio is 3.88 and the P/B ratio is finally 5.90. The dividend yield amounts to 3.22%.
Stock Charts:
Long-Term Stock Price Chart of Coca-Cola (KO) |
Long-Term Dividend Payment History of Coca-Cola (KO) |
Long-Term Dividend Yield History of Coca-Cola (KO) |
Caterpillar -- Yield: 3.15%
Caterpillar (NYSE:CAT) employs 114,233 people, generates revenue of $55,184.00 million and has a net income of $3,703.00 million. The current market capitalization stands at $52.84 billion.Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,932.00 million. The EBITDA margin is 16.19% (the operating margin is 9.65% and the net profit margin 6.71%).
Financials: The total debt represents 46.39% of Caterpillar assets and the total debt in relation to the equity amounts to 234.59%. Due to the financial situation, a return on equity of 19.68% was realized by Caterpillar.
Twelve trailing months earnings per share reached a value of $6.24. Last fiscal year, Caterpillar paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.03, the P/S ratio is 0.97 and the P/B ratio is finally 3.21. The dividend yield amounts to 3.15%.
Stock Charts:
Long-Term Stock Price Chart of Caterpillar (CAT) |
Long-Term Dividend Payment History of Caterpillar (CAT) |
Long-Term Dividend Yield History of Caterpillar (CAT) |
Merck -- Yield: 3.00%
Merck (NYSE:MRK) employs 70,000 people, generates revenue of $42,237.00 million and has a net income of $11,934.00 million. The current market capitalization stands at $167.76 billion.Merck’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,497.00 million. The EBITDA margin is 53.26% (the operating margin is 13.42% and the net profit margin 28.25%).
Financials: The total debt represents 21.77% of Merck assets and the total debt in relation to the equity amounts to 44.00%. Due to the financial situation, a return on equity of 24.22% was realized by Merck.
Twelve trailing months earnings per share reached a value of $3.85. Last fiscal year, Merck paid $1.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.40, the P/S ratio is 4.01 and the P/B ratio is finally 3.50. The dividend yield amounts to 3.00%.
Stock Charts:
Long-Term Stock Price Chart of Merck (MRK) |
Long-Term Dividend Payment History of Merck (MRK) |
Long-Term Dividend Yield History of Merck (MRK) |