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The #6 dog of the dow for 2012 is DuPont, (Ticker symbol DD). DuPont is the 3rd largest chemical company in the United States, and is a 47 billion dollar cap company; DuPont is headquartered in Wilmington Delaware. DuPont is an extremely old company, established back in 1802 as a gunpowder mill. DuPont’s main items are manufacturing polymers, paints and refrigerants.
A theme of most of these Dogs of the Dow has been their stock history with growth. DuPont had extensive growth from 1985 to 1998, where the stock went from around 8 dollars a share to 77 dollars a share. The stock has not seen this value again. After 1999, DD fell and settled around the low 40 dollar a share range with no growth. After the 2009 crash, the stock went below 20 dollars a share, however DuPont finally had a great growth period, reaching values above 55 dollars a share.
DuPont had their stock fall back to the 38 dollar range just back in October. The stock was clearly undervalued at that point and it has been on the run, back up to 51 dollars a share here at the end of January 2012.
DuPont has kept a solid dividend since 2008. The current quarterly dividend is 41 cents a share. Its current dividend yield is 3.23%. I fully expect that DuPont will keep their dividend solid at this value.
DD earnings were $3.68 a share for 2010, and were just reported at $3.93 for 2011 and projected to be $4.26 for 2012 and $4.78 for 2013. This is a company that is continuing to grow, after some years of slow growth. All of this equates to an average P/E ratio of just under 14. Forward PE for 2012 is looking closer to 13 at the current projections.
My unofficial estimate is that DD will grow slowly as one of the Dogs of the Dow. This Dog of the Dow will be at $55 a share by the end of the year, and the quarterly dividend will pay you 1.64 for the year. DD’s growth numbers look strong, but chemical stocks are not favored in the market currently. However this would be a great buy and hold stock for a multi-year period. Just don’t expect huge gains here in 2012.
Disclosure: I currently do not own any shares of DD nor do I plan to purchase any in the near future.
Go back to my original post for 2012 Dogs of the Dow. 2012 Dogs of the Dow
Originally posted February 21, 2012
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