Current Dividend Yield: 3.6%
Performance So Far in 2012: -44%
Of course, while McDonald’s has had a disappointing 2012, Hewlett-Packard’s has just been nightmarish.
Hewlett-Packard (NYSE:HPQ) enjoys a spot in the top 10 Dow dividend stocks’ list not so much because of its dedication to shareholder value — in fact, it’s quite the opposite. HPQ shares have almost been lopped in half this year, which in turn has juiced the stock’s yield to 3.6%.
To its credit, Hewlett-Packard has at least opened the checkbook in the past couple years. HPQ had kept its dividend at 8 cents a share for the better part of a decade, but from 2011 through today it boosted its payout by more than 60% to a current 13 cents quarterly.
And it’s certainly not alone. A growing number of tech stocks have caught the generosity bug this year. Apple made a splash earlier this year by introducing a $2.65/quarter dividend, not to mention Microsoft and Intel (NASDAQ:INTC) occupy spots on this list.
But like Microsoft and Intel, Hewlett-Packard is suffering big-time as it tries to cope in a post-PC world. The company’s foray into mobile is all but nonexistent, it continues to suffer the consequences of poor acquisitions and the best CEO Meg Whitman can offer is, “Just wait!”
While HPQ has enjoyed a nice bounce off the bottom thanks to its increasingly attractive value and dividend — plus rumors that activist investor Carl Icahn is getting in – its place among these other sturdy, high-yielding blue chips might be a bit misleading.