5 Dow Dividend Stocks That Are Lagging In 2010

Investors are now starting to breathe a sigh of relief. The Dow Jones index has moved back above 11,000 and the Great Recession now seems to be behind us. Sure the markets still have a long way to go to get back to its October 2007 highs, but our portfolios look much better than they did in March 2009.

Already this year, the S&P 500 is up 7% and the Dow Jones has gained nearly 6%. The market rally has seen 22 of the 30 Dow stocks post gains in 2010. While many of the top dividend stocks have performed very well this year, eDividendStocks.com has put together a list of 5 Dow dividend stocks that are lagging in 2010.

While Verizon’s stock price has recovered off its 52-week low in early February, the telecom giant is still down nearly 11% in 2010. Sure the stock offers an impressive 6.4% dividend yield, but that has provided little condolence as the stock price has continued to languish.

Verizon’s arch-rival, AT&T, has also been one of the markets laggards in 2010. AT&T pays a 6.5% dividend yield, but has seen their shares decline 7.5% in 2010. Investors are hopeful that the second half of 2010 will be much better, now that their costly marketing war with Verizon seems to have subsided.

Pfizer has the unenviable distinction of underperforming the broader market indexes each of the last eight years. That unfortunate trend seems to be continuing in 2010, with Pfizer’s shares down 7.6%. Pfizer does offer a nice 4.3% dividend yield, but there are major concerns around their product pipeline.

Coca Cola
Coca Cola has a proud history of outperforming the broader market and is undoubtedly the most surprising stock in this list. However, Coca Cola’s shares have fallen nearly 4% this year while rival Pepsi has gained nearly 9%. Coca Cola still offers a higher dividend than Pepsi (3.2% vs. 2.7%), but dividend investors are already considering switching to Pepsi as their beverage of choice.

Poor Alcoa, after seeing their stock price plunge 69% in 2008 it seemed like things were getting much better. However, the aluminum stock is down nearly 14% in 2010 and has been the worst performing Dow stock in 2010.

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