The Yield on the Dow

According to the Wall Street Journal, here are the indicated dividends for the 30 Dow stocks:

AT&T Corp. $1.68
Verizon $1.90
Pfizer $0.72
DuPont $1.64
Merck $1.52
Kraft Foods $1.16
Chevron Corp $2.88
Johnson & Johnson $2.16
Coca-Cola $1.76
McDonald’s $2.20
Procter & Gamble $1.93
Home Depot $0.95
Intel $0.63
Exxon-Mobil $1.76
Travelers Cos. $1.44
Caterpillar $1.76
3M $2.10
General Electric $0.40
Boeing $1.68
United Tech $1.70
Wal-Mart Stores $1.21
IBM $2.60
Microsoft $0.52
American Express $0.72
Alcoa $0.12
Walt Disney $0.35
Hewlett-Packard $0.32
J.P. Morgan Chase $0.20
Bank of America $0.04
Cisco Systems $0.00

Using some complicated math, I added all the dividends together and got $38.05. The current divisor on the Dow is 0.132319125, so dividing by the divisor comes to 287.56.
The Dow closed today at 9,870.30, so the indicated dividend yield is 287.56 divided by 9,870.30 or 2.91%. The closing yield on the 10-year Treasury (^TNX) is 2.97%.
Of course the Dow’s dividends can be cut, but you’re really not getting much for the “safety” of Treasuries.

Posted by on June 29th, 2010 at 10:41 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.