eChristian Investing
submits:
2010 has been fairly disappointing to investors following the
huge market gains experienced in 2009. Sure the Dow Jones index is
only down 1% for the year, but 18 of the 30 Dow components have
posted losses in 2010. Standout performers from 2009, like Alcoa (
AA
) and Microsoft (
MSFT
), have delivered horrible returns to investors this year.
Fortunately, the top Dow dividend stocks have outperformed the
broader market. As we have pointed out before, the top Dow dividend
stocks don't necessarily include the highest yielding stocks like
Verizon or AT&T
.
Verizon's (
VZ
) 6.9% yield makes it the highest yielding stock in the Dow, but VZ
shares have fallen 13% in 2010. Similarly, AT&T (
T
) yields 6.8%, but the stock's 10% drop this year has erased any
dividend gains.
Verizon and AT&T both have stagnant businesses that don't
inspire investor interest. The companies then further hurt their
stock prices by engaging in a costly marketing campaign against
each other. However, if you look beyond those two telecom stocks
you can find 3 top Dow dividend stocks that have shined in
2010.
DuPont (
DD
)
DuPont is now the fourth highest yielding stock in the Dow index
with a 4.5% dividend yield. Investors in DD have been able to
capture not only a healthy dividend, but also some impressive
capital gains. DuPont's stock has gained nearly 11% in 2010 as
revenue surged 23% in the first quarter. DuPont also has a
tremendous history of increasing their dividend payout.
McDonald's (
MCD
)
McDonald's has been our top Dow dividend stock pick this year.
We believe that MCD is the
safest Dow dividend stock
and still yields an impressive 3.4%. Like Dupont, investors can
count on more than just dividend checks with this stock. McDonald's
shares have already gained 12% in 2010. The stock has shrugged off
the recent market selloff and is now trading near its 52-week
high.
Boeing (
BA
)
After being one of the worst performing stocks in 2008, Boeing
bounced back last year to post a nice 27% gain. However, their
performance in 2010 has been even more impressive. The stock has
surged 23% since the beginning of the year and many analysts
believe this is just the beginning of an up cycle for Boeing. Wall
Street is expecting earnings to grow 25% next year. In addition to
the strong growth prospects, Boeing also rewards investors with a
2.7% dividend yield.
Disclosure:
No positions
See also
Economic Data Storm Slams the S&P 500
on seekingalpha.com