After strong same-store sales during the crash of 2008, Walmart (WMT) has become its own worst enemy as it continues to price itself out of profitability. The holiday pricing war sparked by this retail behemoth could win traffic, but is sure to result in slim margins and even slimmer earnings for this pick in the fourth quarter.

See the complete list of 13 Dow Stocks that are doomed.

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Verizon (VZ) is betting the farm on a high-stakes bid to supplant the Apple (AAPL) iPhone with its Droid device. In the long run this may be a good move, but in the short run the ad blitz and high cost of this rollout are really going to eat away at Verizon's bottom line.

While spending on tech devices has been strong, the bottom line is that the initial price point for the Droid may be a bit high and it will take some time for consumers to catch on to this smart phone, considering how loyal Apple users are. Things may change in a few weeks if I hear some favorable news, but for now VZ is a sell.

Next: Dog of the Dow #13: Walmart (WMT)

Procter & Gamble (PG) is a company that overreached and now has a cumbersome fleet of brands. To its credit, the company is currently shopping around some product divisions including Braun small appliances, Iams pet foods, Duracell batteries and Pringles snacks.

But the bottom line is that it will take some time to streamline this patchwork company -- so investors shouldn't hold their breath.

Next: Dog of the Dow #12: Verizon (VZ)

McDonald's (MCD) was a favorite of mine during the recession, as a weak dollar boosted overseas revenue and value-conscious consumers flocked to the Golden Arches. But low-priced fare can only take you so far, and competitors have started to erode MCD's hold on cheap eats.

What's more, the company's successful McCafe offerings took cash away from Starbucks (SBUX) in early 2009 -- but now cheaper at-home alternatives to brewing coffee are cutting into McDonald's java sales. That's bad news for MCD, and I rate this stock a sell.

Next: Dog of the Dow #11: Procter & Gamble (PG)

Kraft (KFT) had hoped to win Wall Street's attention by pursuing Cadbury, but instead it has come across as wishy-washy in a bid that may never come to fruition.

And rather than growing, Kraft may actually be shrinking now that rumors are circulating that the company is shopping around its Maxwell House coffee brand. Obviously, a good company should be growing and not shrinking.

Next: Dog of the Dow #10: McDonald's (MCD)

Home Depot (HD) is kind of a no-brainer. Home sales have trickled to nearly nothing, and with falling property values it doesn't make a heck of a lot of sense to add on that sun room you've always wanted.

The final nail in the coffin is weak consumer spending that is hurting retailers of all stripes. Until housing and consumer confidence both improve markedly, HD is a sell.

Next: Dog of the Dow #9: Kraft (KFT)

General Electric (GE) posted third-quarter profits that were down 44% over last year. While other companies are returning to growth mode, GE is still scrambling to survive -- announcing recently that it plans to lay off almost 3,000 more workers to stay afloat.

Next: Dog of the Dow #8: Home Depot (HD)

Exxon Mobil (XOM) left much to be desired after its recent Q3 report. Earnings were down 68% compared to last year. Its refining business swung to a loss. Earnings fell short of analysts' expectations. Revenue decreased 40%. Should I go on?

Next: Dog of the Dow #7: General Electric (GE)

Chevron (CVX) saw its profits slashed in half in its recent Q3 earnings report, and that's even after a big jump in output and a sharp cut in operating costs.

If producing more and spending less can't get this company on the right track, it's basically out of options in the short term. While it may be faring better than some other oil stocks, I still rate CVX a sell.

Next: Dog of the Dow #6: Exxon Mobil (XOM)

Boeing (BA) hung its future on the Dreamliner, but this messy project has turned into quite a nightmare for stockholders. The next-generation plane is two years late after five delays ... so I'll believe this launch when I see it.

It's tough to trust a company that is this poorly run.

Next: Dog of the Dow #5: Chevron (CVX)

Since the financial crisis, Bank of America (BAC) has received $20 billion in TARP funds and a guarantee to cover $118 billion in potential losses.

The result? Bank of America lost more than $2 billion in the third quarter, worse than analysts expected, and had to set aside more than $11 billion more to offset bad loans.

Next: Dog of the Dow #4: Boeing (BA)

AT&T (T) has been the lucky recipient of two million new customers, thanks to the iPhone. But let's not forget that AT&T was Apple's (AAPL) second choice and only got the deal because Verizon (VZ) passed up the opportunity. Now Verizon is intent on making up lost ground and then some, directly targeting iPhone users and making a huge splash with its Android smart phone.

AT&T better be shaking in its shoes -- and shareholders should rethink their stake in this stock.

Next: Dog of the Dow #3: Bank of America (BAC)

Alcoa (AA) is an industrial icon in America, but manufacturing hasn't been so hot lately. The result has been four straight quarterly losses for this metals company.

And guess what? Fourth-quarter earnings are just around the corner for this company on January 11, and a number of analysts are expecting yet another shortfall. Not a good sign.

Next: Dog of the Dow #2: AT&T (T)

Broader economic indicators like GDP and housing numbers seem to be pointing up lately. But despite this, the Dow 30 are stuck in a death spiral. This arbitrary index of outdated stocks is a poor sample of Wall Street right now and just can't seem to get its act together.

Investors who place so much emphasis on the Dow Jones Industrial Average do so at their own peril. Not only are the Dow 30 very disconnected from Wall Street and the broader U.S. economy, this lineup also contains some of the worst stocks out there right now.

"The Dogs of the Dow strategy has a long-term history of outperforming the Dow Jones average," notes technical expert Gerald Appel.

In his Systems & Forecasts, he explains, "The theory is that the highest yielding stocks are undervalued and should have the greatest change of appreciating." Here, he reviews the five highest yielders.

"In calculating a formal track record for the strategy, dividend yields are ranked on the last trading day of each year. However, there is no reason why you are limited to ranking stocks only at the end of the year.

"The current market climate appears favorable for using this strategy to garner investment income, since market risk appears below normal and investment income is getting hard to come by.