Solid Dow Dividends With Little European Exposurehttp://www.fool.com/investing/general/2011/11/28/solid-dow-dividends-with-little-european-exposure.aspx Brian Stoffel
November 28, 2011
Taking his story a step further, I'll show you stocks in the Dow Jones Industrial Average (INDEX: ^DJI ) that have dividends that are: (1) large, (2) safe, and (3) have less exposure to Europe than others.
Dividends, narrowing the field
In narrowing my search for Dow dividend stocks that could weather a eurozone meltdown, I wanted to throw out those with yields that were puny. I did this by eliminating from consideration any company that didn't at least offer its shareholders a 2.5% yield.
Furthermore, I wanted to be sure that the dividends were healthy. In order to do this, I checked out the company's dividend payout ratio. Essentially, this measures the amount of a company's earnings that are used to pay out its dividends. I eliminated all companies with payout ratios above 80%.
Source: Yahoo! Finance.
OK, what about Europe?
Wal-Mart, Travelers, and Microsoft didn't offer detailed enough information on European exposure in their reports, so they were thrown out of the equation for this exercise. Of the remaining 16 companies, here is how they stacked up, listed from least to most European exposure.