The Dow Jones Industrial Average (DJINDICES: ^DJI ) is a gold mine for long-term investors. It's particularly juicy if you're looking for high-quality income stocks, as these proven blue chips tend to deliver both high yields and reliable dividend growth. But there are stragglers in every herd, including this elite collection. Let me point out the three worst dividend stocks on the Dow today.
AA Dividend data by YCharts.
Bank of America (NYSE: BAC ) is a horrible income stock right now, any way you slice it. No other Dow stock even comes close to its feeble 0.3% yield. Annual payouts have plunged 97% over the last decade, and regulators keep a heavy foot on B of A's throat to prevent the troubled bank from over-stretching its financial reserves. That financial crisis in 2008 wrought devastation on Bank of America's dividend appeal.
Top Casino Stocks To Watch For 2015: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Bespoke Investment Group]
As we have pointed out multiple times in the last several weeks, large cap Energy stocks led by Exxon (XOM) and Chevron (CVX) have been big laggards over the last year. As you slide down the market cap scale, however, relative strength has been improving. Small cap Energy sector stocks, for example, have been on a tear, and are outperforming the S&P 600 small cap index by the largest margin of the year.
Best Blue Chip Stocks To Buy Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Intelligent Speculator]
A few months ago, when the Associated Press twitter account was hacked and a false message about a fire at the White House appeared, the market quickly tanked only to get right back once it was rebuffed. That is certainly one (illegal) way to use Twitter for financial gain. This week, we saw a much more legitimate way to use Twitter. Carl Icahn (@Carl_C_Icahn), one of the most powerful investors in the world announced he had a big stake in Apple (AAPL) with over $1.5B in stock. The stock shot up instantly.
Best Blue Chip Stocks To Buy Right Now: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Dan Caplinger]
One concern, though, is how the company handled news of Venezuela's currency devaluation. Clorox (NYSE: CLX ) and Colgate-Palmolive (NYSE: CL ) also felt the pinch, with Clorox taking about a $0.05 to $0.10 per-share earnings hit and Colgate losing about $0.50 per share. But they also addressed the potential devaluation more proactively than P&G did. Clorox actually�anticipated�the devaluation in its February earnings report, projecting the potential hit if a devaluation took place. Colgate didn't provide specific guidance in advance but clearly saw it as an issue, delivering on a promise to give prompt guidance revisions after the devaluation occurred.
- [By Dan Caplinger]
Procter & Gamble (NYSE: PG ) will release its quarterly report on Friday, and investors have watched the stock hit new all-time record highs in November before falling back in the past two months. Despite the optimism, Procter & Gamble earnings face pressure from international giant Unilever (NYSE: UL ) as well as domestic rivals Colgate-Palmolive (NYSE: CL ) and Kimberly-Clark (NYSE: KMB ) . The question facing investors is whether P&G can sustain its longtime competitive advantages against its rivals and bolster its growth.
- [By TaniaC]
Colgate-Palmolive Company (CL) is a consumer products company whose products are marketed in over 200 countries and territories throughout the world. It operates in two segments: Oral, Personal and Home Care and Pet Nutrition.
Best Blue Chip Stocks To Buy Right Now: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Teresa Rivas]
Both Visa (V) and MasterCard (MA) were rising on Monday, thanks in part to upgrades from Robert W. Baird.
Analysts David Koning and Adam Dahms boosted their opinions on both stocks to Outperform. They have a $245 price target on Visa, and note that the risk/reward has become more attractive, in our view, as the stock enjoys strong secular tailwinds in its business model, solid free cash flow generation, and what they see as exaggerated concerns about regulatory and competitive issues. They call the stock�� recent pullback as an attractive entry point, given the stock�� ��ompelling valuation.��/p>
Read more detailed estimates below:
Strong business model/solid balance sheet:
We think EPS growth in the mid-teens is sustainable over time behind roughly 10%+ revenue growth (the international segment is now about 50% of revenue and can grow rapidly).
The strong balance sheet/FCF typically in excess of earnings allows for strong buyback activity (could comfortably add 5%/year to EPS) or could allow for the accretive purchase of Visa Europe.
Recent fears about the stock might be a bit overblown:
Regulatory: Risk of potential share loss due to changes in the exclusivity rules did not materialize. The US Appeals Court decided to keep existing rules intact.
MCX: Although some share loss is certainly possible, we do not see overly material displacement of V/MA as a realistic outcome.
Russia: Full displacement is unlikely so long as consumers continue to use V/MA (acceptance largely consumer driven). Russia is likely <1% of revenue, not very impactful regardless of displacement.
CQ1 weakness: Credit card data from JPM/WFC last week showed CQ1 volumes largely steady (relative to CQ4). We considered some deceleration likely this quarter.
Valuation appears compelling at these levels:
The stock has underperformed the S&P by ~10% YTD (currently trades at +33% premium to NTM S&P, low
- [By Charley Blaine]
Visa (NYSE: V): Tuesday close: $212.06. P/E ratio: 25.09.
The credit-card processor is seeing growth around the world. It also expects, like Nike, to be a winner from the World Cup.
Best Blue Chip Stocks To Buy Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By GuruFocus]
Philip Morris International Inc. (PM) Reached the 52-Week Low of $85.37
The prices of Philip Morris International Inc. (PM) shares have declined to close to the 52-week low of $85.37, which is 15.1% off the 52-week high of $96.73. Philip Morris International Inc. is owned by 31 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Ten reduced their positions.
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