12 Best Dow Stocks To Buy Right Now

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. See the table below for analysts’ consensus recommendations on all 30 Dow Jones stocks, per S&P Global Market Intelligence, as of December 19, 2023. I also like that Microsoft is well-positioned in several other hot technology areas.

  1. Its tools are essential to business, its customers are loyal to its products, and its finances are in tip-top condition.
  2. Net income at America’s largest telecom will likely stabilize in 2022 and grow by 7% next year from industry consolidation.
  3. For more 125 years, investors have turned to the Dow to measure the health of the stock market and the direction of the United States economy.
  4. The company has been relatively quiet in relation to its plans related to AI.
  5. 17 analysts rate the company a hold, while another 3 rate it a sell.

This tends to work in long-term investors’ favor, since they get to keep the lion’s share of their gains while keeping costs low. The Dow Jones Industrial Average ETF Trust (DIA -0.11%) is the only game in town when it comes to mirroring the performance of the Dow Jones Industrial Average. The quintessential blue-chip stock, Coca-Cola is a solid investment in good times and bad. Year-to-date, Goldman Sachs stock has increased 30% to $344.77 a share.

It’s safe, continues to grow rapidly, and provides an ultra-dependable dividend for income investors in particular. There are many reasons for optimism as the U.S. economy continues improving. America’s GDP growth continued to move in the right direction and soared by 5.2% in the third quarter. That strongly suggests that the Dow, composed of 30 of the best U.S. stocks, is worth investing in at the moment. In a stock market filled with uncertainty, investments in the Dow are great for stability and defense.

He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad. Cisco is one of the Dow Jones Index’s most dependable stocks. The networking firm has managed to earn positive net income every year since 2000, notching an average 19.7% net margin. America’s second-largest drug retailer has a questionable financial history. In 2012 Walgreens bought U.K.-based Boots for $22 billion, creating a massive transatlantic headache for its managers.

Be sure to read how to invest during the ongoing stock market uptrend. Meanwhile, investors who purchase CSCO shares also receive a dividend that yields approximately 3.2%. That’s a nice incentive for a company that is very stable and serves to push returns much higher overall for investors. At the same time, IBM is exposed to important growth sectors, including AI and quantum computing. That means equity offers investors a chance at real growth and provides a more stable income.

The 3 Best Dow Jones Stocks to Invest In for Big Gains in 2024

The index has been powered to new heights as many of its leading stocks outperform and hit record highs. Declining bond yields, strong economic data and the Federal Reserve’s promise to lower interest rates later this year are also helping to lift the Dow 30. With a so-called “soft landing” coming into view, it’s reasonable for investors to expect the Dow to push further into record territory as the year progresses. Here are the three best Dow Jones stocks for big gains in 2024. The S&P 500, as the name indicates, contains 500 individual stocks; the Dow Jones only holds 30.

Having integrated AI throughout all of its products and services it offers customers a complete platform of usability, efficiency, and growth. It has a suite of leading global franchises, including Windows, Office, SQL-Server, Xbox and LinkedIn. Although the PC business continues to shrink, Microsoft’s operations are substantially diversified making it a nearly bullet-proof company. Its tools are essential to business, its customers are loyal to its products, and its finances are in tip-top condition.

Coca-Cola Stock

The company recently released its third-quarter results, which also suggests the reason for optimism. Increasing economic confidence allowed the company to narrow its guidance for full-year growth to 11% as well. That’s a big threat to individual consumers but, in aggregate, will serve credit card companies well moving forward. Shares of the beverage company have been helped by acquisitions and a rebound from the pandemic, Cowen analysts say. “In terms of the economic outlook, if the economy continues to grow, we’ll benefit from higher insured exposures, as you’ve seen in our results over the past few quarters,” he said then. “If we head into a recession, we’re very well-positioned having made significant progress in improving productivity and efficiency in recent years.”

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However, first-quarter results, reported during that time, beat expectations, helped by its osteoporosis treatment Evenity and Aimovig, its migraine drug. Amgen stock got a big lift in February, after offering an upbeat best dow jones stocks to buy sales and profit outlook for 2030, potentially putting sales above $35 billion. Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

My models suggest Walmart’s stock is worth closer to $129… not $169 as analysts seem to think. When an investment bank relies on fee income from corporations, there’s a strong incentive to give “buy” ratings to your clients. Only 1 company in the entire S&P 500 has an average “sell” rating by analysts. In this article, we will take a look at 11 Best Dow Stocks to Buy Now. If you want to see some more of the best Dow stocks to buy, go directly to 5 Best Dow Stocks To Buy Now. Dow stocks are stocks listed on the prestigious Dow Jones Industrial Average, which is a stock market index that includes 30 prominent companies.

During periods of stock market volatility and economic uncertainty, it’s reasonable for investors to want to take a more defensive approach with their portfolios. But energy stocks also have a history of significant crashes. High capital expenditures and low margins mean that few oil majors perform well over more extended periods. Falling oil prices also leave “stranded assets” of oil in the ground that are no longer profitable to pump. Canada’s oil sands contain millions of barrels of oil that are only profitable to extract if prices remain above $70.

Originally, the Dow comprised just twelve companies that were commodity-focused. It is a price-weighted index, unlike other market indexes which weigh businesses on their market capitalizations of businesses. Investors should consider buying in if they’re seeking a conservative place to park cash. Microsoft generates $68 billion in free cash flow annually, a figure that’s expected to rise to $89 billion by 2024. Yet, the data suggests that Cisco’s shares have fallen too far.

That means they tend to lag in up markets, but hold up better when everything is selling off. This low-beta skew can actually be quite advantageous to long-term investors. Value investors could find the stock especially attractive since its shares trade at only 8x expected earnings. Even after delivering solid gains this year, American Express shares trade at a forward price-to-earnings ratio of only around 14.5.

With business travel replaced by video conference calls and consumers sheltering-in-place at home, worries compounded that American Express’ heyday was behind it. Kiplinger is part of Future plc, an international media group and leading digital publisher. The Dow Jones Industrial Average comprises 30 blue-chip stocks that are tops in their industries. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

During Travelers’ earnings conference call in April, it noted that most of its business is in the U.S., helping to shield it from risks around the world. But CEO Alan Schnitzer noted that estimating loss costs was harder than ever, given increasingly harsh weather, Russia’s war in Ukraine and the world turns away from globalization. “It’s hard to predict exactly where prices will go,” he said. Among Dow Jones stocks in the Magnificent Seven, Apple rallied 1.5% Monday, rebounding from Friday’s losses. Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion.

With the company generating more free cash flow, I expect this streak of dividend hikes will continue in 2024. The Dow Jones Industrial Average ended December with big gains, as the ongoing stock market rally continues. The https://1investing.in/ and watch in 2024 are Apple (AAPL), Merck (MRK), Amgen (AMGN), Microsoft (MSFT) and Visa (V). Visa cardholders will continue to spend, especially in terms of cross-border payments.