Dogs of the Dow Countdown – Week 2

Symbol Company Price Yield Beta
VZ Verizon 35.31 4.59% .92
MO Altria 84.83 4.06% .86
PFE Pfizer 25.17 3.81% 1.04
T AT&T 34.97 3.80% .87
C Citigroup 51.85 3.78% .86
MRK Merck 43.93 3.46% .48
GM Gen Motors 29.58 3.38% 1.50
DD DuPont 46.90 3.16% 1.12
JPM JP Morgan 46.76 2.91% 1.08
GE Gen. Elec. 35.27 2.84% .84

Components of the list remain the same as last week. VZ and MO went up in price but retained their position as yield leaders for the Dogs. PFE went down quite a bit, increasing the yield enough to move them into third place. The 10-year Treasury Bond ended the week with a yield of 4.55%.

I think VZ is an attractive alternative to 10-year Treasuries. VZ’s yield is a little better. It seems to me that bonds have nowhere to go but down, but VZ could go up quite a bit. As always, MO is likely to reward patient investors. PFE is mildly interesting at the current price, and so is GE. The rest of the list seems uninspiring, but we still have three weeks to go until December 29 and a lot could happen in that time.


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