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5 'A+' Dow Dividend Stocks Worth a Look

Written by: TheStreet Dividend Adviser 08/06/12 - 1:32 PM EDT
Tickers in this article: KO HD AXP DIS KFT
NEW YORK (TheStreet) -- There's about 6,000 U.S.-listed stocks trading on the major exchanges on any given day. Of those, TheStreet Ratings has rated 5,744 and only 106 issues -- less than 2% -- have received an 'A+,' our highest rating.

Five of these exceptional companies are well-known Dow dividend stocks:

  • American Express
  • Disney
  • Home Depot
  • Kraft Foods
  • Coca-Cola

Collectively, these five stocks yield 2.04% -- considerably less than the Dow Jones Industrial Average as a whole. However, TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends.

Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.

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We consider each of these stocks to be strong buys.

As always, stock ratings should not be treated as gospel -- rather, use them as a starting point for your own research. A detailed analysis of each stock's rating appears on the following pages:

AMERICAN EXPRESS

Growth -- 5.0 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, AXP has a growth score better than 90% of the stocks we rate.

Total Return -- 4.0 out of 5 stars

Measures the historical price movement of the stock. The stock performance of this company has beaten 70% of the companies we cover.

Efficiency -- 3.5 out of 5 stars

Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 60% of the companies we review.

Price Volatility -- 5.0 out of 5 stars

Measures the volatility of the company's stock price historically. The stock is less volatile than 90% of the stocks we monitor.

Solvency -- 5.0 out of 5 stars

Measures the solvency of the company based on several ratios. The company is more solvent than 90% of the companies we analyze.

Income -- 3.5 out of 5 stars

Measures dividend yield and payouts to shareholders. The company's dividend is higher than 60% of the companies we track.

DISNEY

Growth -- 4.5 out of 5 stars

Measures the growth of both the company's income statement and cash flow. On this factor, DIS has a growth score better than 80% of the stocks we rate.