The Cheapest Stocks Within The Dow Jones

May 4th, 2012 by Dividend Yield
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Cheapest Stocks From The Dow Jones Researched By Dividend Yield – Stock, Capital, Investment. The Dow Jones Index is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. The index is used by many investors and institutional worldwide for their asset allocation. Stocks that are within the index must be held but it does not mean that the stocks are cheap and you get a good return.

I analyzed the index by the cheapest stocks, stocks with a current and forward P/E ratio of less than 15. Only thirteen companies fulfilled these criteria.

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Here are my favorite stocks:

Wal-Mart Stores (WMT) has a market capitalization of $200.83 billion. The company employs 2,200,000 people, generates revenues of $446,950.00 million and has a net income of $16,454.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,688.00 million. Because of these figures, the EBITDA margin is 7.76 percent (operating margin 5.94 percent and the net profit margin finally 3.68 percent).

Financial Analysis: The total debt representing 27.62 percent of the company’s assets and the total debt in relation to the equity amounts to 74.92 percent. Due to the financial situation, a return on equity of 22.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.54. Last fiscal year, the company paid $1.46 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.99, P/S ratio 0.45 and P/B ratio 2.83. Dividend Yield: 2.69 percent. The beta ratio is 0.35.

United Technologies (UTX) has a market capitalization of $73.74 billion. The company employs 199,900 people, generates revenues of $58,190.00 million and has a net income of $5,374.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,387.00 million. Because of these figures, the EBITDA margin is 16.13 percent (operating margin 13.92 percent and the net profit margin finally 9.24 percent).

Financial Analysis: The total debt representing 16.70 percent of the company’s assets and the total debt in relation to the equity amounts to 46.89 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.70. Last fiscal year, the company paid $1.86 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.20, P/S ratio 1.28 and P/B ratio 3.38. Dividend Yield: 2.36 percent. The beta ratio is 1.03.

American Express Company (AXP) has a market capitalization of $70.04 billion. The company employs 62,500 people, generates revenues of $32,282.00 million and has a net income of $4,899.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,194.00 million. Because of these figures, the EBITDA margin is 31.58 percent (operating margin 21.55 percent and the net profit margin finally 15.18 percent).

Financial Analysis: The total debt representing 41.08 percent of the company’s assets and the total debt in relation to the equity amounts to 335.18 percent. Due to the financial situation, a return on equity of 27.64 percent was realized. Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, the company paid $0.72 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.56, P/S ratio 2.20 and P/B ratio 3.78. Dividend Yield: 1.31 percent. The beta ratio is 1.84.

Take a closer look at the full table of the cheapest Dow Jones stocks. The average price to earnings ratio (P/E ratio) amounts to 12.14 and forward P/E ratio is 10.31. The dividend yield has a value of 2.51 percent. Price to book ratio is 3.72 and price to sales ratio 1.55. The operating margin amounts to 17.71 percent.

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