The Dow Jones Industrial Average (DJIA) is one of the oldest and most widely followed stock market indices in the world. The DJIA is a price-weighted index, meaning the companies with higher stock prices have a greater impact on the index’s performance. This index serves as a barometer for the overall health of the U.S. stock market and by extension, the U.S. economy.
Investing in stocks that are part of the Dow Jones offers certain advantages. These stocks represent well-established, financially sound companies in various industries, providing diversified exposure to the U.S. economy. Investing in Dow stocks can be a strategy for those seeking stability and consistent performance. However, there are disadvantages. The DJIA covers only 30 companies, which may not provide as broad a market representation as other indices like the S&P 500. Its price-weighting methodology can also skew the index’s performance towards companies with higher stock prices, regardless of their actual market size or economic impact.
For investors, the Dow Jones Industrial Average offers a mix of stability and recognizable brand names. However, its limited scope and price-weighting method should be considered when assessing its suitability for an investment portfolio. With that being said, let’s look at three Dow Jones stocks to watch in the stock market now.
Dow Jones Stocks To Buy [Or Avoid] Now
- Microsoft Corporation (NASDAQ: MSFT)
- Nike Inc. (NYSE: NKE)
- Apple Inc. (NASDAQ: AAPL)
Microsoft (MSFT Stock)
Starting us off, Microsoft (MSFT) is a multinational technology company, widely recognized for its software products, including the Microsoft Windows operating system, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Microsoft has a wide portfolio that includes cloud computing services, with Azure being one of the leading platforms in the industry.
In late November, Microsoft announced its latest quarterly dividend. In detail, the company’s Board of Directors declared a quarterly dividend of $0.75 per share. Additionally, this dividend is payable on March 14, 2024 to stockholders on record on February 15, 2024. Currently, Microsoft has an annual dividend yield of 0.81%.
In the last month of trading, shares of Microsoft stock have fallen lower by 0.96%. Meanwhile, during Monday morning’s trading session, MSFT stock is trading green on the day so far by 0.78% at $370.62 a share.
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Nike (NKE Stock)
Second, Nike, Inc. (NKE) is a multinational corporation that designs, develops, manufactures, and markets athletic footwear, apparel, equipment, and accessories. The company has grown to become one of the world’s largest suppliers of athletic shoes and apparel.
Last month, Nike reported a beat for its second quarter 2024 financial results. Diving in, the company notched in earnings of $1.03 per share, with revenue of $13.39 billion for Q2 2024. This was versus Wall Street’s consensus estimates which were an EPS of $0.84, on revenue of $13.37 billion.
Moreover, in the last month of trading, shares of Nike stock have dropped by 12.06%. While, on Monday morning, NKE stock is trading modestly lower by 0.098% at $101.98 a share.
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Apple (AAPL Stock)
Finally, Apple Inc. (AAPL) is a global technology leader known for its consumer electronics, software, and online services. Today, Apple’s product line includes the iPhone, iPad, Mac, Apple Watch, and Apple TV. The company also operates services like the App Store, Apple Music, and iCloud.
In November, Apple announced better-than-expected Q4 2023 financial results. Getting right into it, the tech giant reported earnings of $1.46 per share, with revenue of $89.50 billion for the fourth quarter of 2023. For context, this is compared to analysts’ estimates for the quarter, which were EPS estimates of $1.39 and revenue estimates of $84.69 billion.
In the past month of trading, shares of Apple stock have pulled back by 6.23%. That said, during Monday’s mid-morning trading session, AAPL stock is trading higher on the day so far by 1.26% at $183.46 a share.
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