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 Oil Service Stocks To Own 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]
Lately, Johnson & Johnson has presented two different faces to investors. On one hand, the company has faced the challenge of dealing with a weak consumer-products business, as multiple recalls and close regulatory oversight of its production facilities have exacerbated J&J's problems. With its more focused consumer-goods business, Colgate-Palmolive (NYSE: CL ) has worked harder at taking advantage of international growth opportunities than many of its rivals, and Colgate's strong overseas sales, in comparison to J&J's international weakness, show the effectiveness of that strategy. In particular, Asia has been a focus point for Colgate, with revenue from the region having risen 9% year over year compared with less than 3% growth overall. Moreover, Latin America represents Colgate's biggest region for sales, with more than half again the revenue its U.S. segment produces.
- [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.
Hot Blue Chip Stocks To Own For 2014: 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 Associated Press]
The Dow Jones industrial average fell 354 points, or 2.3 percent, Thursday to close at 14,758. Shares of ExxonMobil (NYSE: XOM ) and Chevron� (NYSE: CVX ) , both Dow components, fell by more than 2 percent. The euro slipped to $1.3197 from $1.3274 in New York a day earlier. The yield on the benchmark 10-year note rose to its highest level since August 2011.
- [By Wallace Witkowski]
With quarterly reports out from Dow energy components like ExxonMobil (XOM) �on Thursday and Chevron (CVX) �on Friday, investors will be combing outlooks for evidence of the economic recovery, said Robert Pavlik, chief market strategist at Banyan Partners.
Hot Blue Chip Stocks To Own For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Bottom Up Investing]
Microsoft is reporting excellent financial performance relative to peers International Business Machines (IBM) and Oracle Corporation (ORCL); all three firms compete in the software industry and broader technology sector. Microsoft's revenue grew in 2011 and 2012, and revenue is forecasted to grow in fiscal 2013.
- [By Benjamin Pimentel]
On the downside, Twitter (TWTR) ,�Microsoft (MSFT) , IBM Corp. (IBM) �and eBay Inc. (EBAY) �all closed in the red.
Hot Blue Chip Stocks To Own For 2014: 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 Jon C. Ogg]
Apple Inc. (NASDAQ: AAPL) has not gotten the warm reception from Wall Street and investors that the fan boys may have hoped for after its quarterly earnings report. The long and short of the matter is that Apple’s maturity has crept up on it, and the days of Apple shares rising indefinitely are looking more and more like the are in the past.
- [By MONEYMORNING.COM]
As a trend-setter, Apple Inc. (Nasdaq: AAPL) is used to being copied.
But the Cupertino, Calif.-based tech giant probably won't mind if the Apple stock split inspires other companies with high stock prices to do their own stock splits.
Hot Blue Chip Stocks To Own For 2014: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Chris Hill]
McDonald's (NYSE: MCD ) and UnderArmour (NYSE: UA ) report earnings on Friday. Will McDonald's continue its recent rebound? Is UnderArmour the next Nike? In this Installment of Investor Beat, our analysts explain why they're watching McDonald's and UnderArmour.
Hot Blue Chip Stocks To Own For 2014: 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 Chuck Carnevale]
But it was with the last couple of sentences of his blog post that I took the greatest exception. More precisely, I found that his example of Phillip Morris International (PM) to be misleading. However, not because of what Roger included, but rather because of what he left out. I will elaborate more right after the following excerpt where he closed out his blog post:
- [By Dan Caplinger]
Philip Morris International (NYSE: PM ) will release its quarterly report on Thursday, and projections suggest that it will manage to deliver decent results for investors. But shareholders don't seem convinced about Philip Morris earnings, as they've recently sent the stock down substantially from its May highs.
- [By Alexandra Scaggs]
Then the bank appeared to backpedal a bit in its note yesterday, cutting back on its recommended holdings in Ultimate Software Group(ULTI) and Mastercard(MA) and adding to its recommended positions in Anadarko Petroleum Corp.(APC), an energy stock, and Philip Morris International Inc.(PM), a consumer-staples stock. Morgan Stanley strategist Adam Parker �and his�team found that times when value stocks outperform growth stocks by such a wide margin “are typically followed by periods where value outperforms.”
- [By Jon C. Ogg]
Philip Morris International Inc. (NYSE: PM) has experienced more than impressive growth in both its share price and its profits in the past four years. Lately its gains have petered out. The problem is that much of that growth has come from a few countries in Asia, and if one analyst report is accurate, there will be little to no growth from those areas ahead. Nomura Securities is downgrading Philip Morris to a Reduce rating from Neutral, but for all practical purposes it is a Sell rating. The firm’s $76 price target suggests downside of more than $10 ahead.
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