Top 5 Dow Jones stocks to buy in 2023
The Dow Jones Industrial Average (DJIA) is a great place to find strong stocks with great dividends. The 30 stocks that make up Dow Jones are leaders in their respective industries and have great competitive moats, great cash flow, and great earnings. So when you buy Dow Jones stock, you are actually buying the 30 largest players in the US economy.
Learn with Evest about the five best stocks that can be bought from Dow Jones, by knowing the details of the performance and development of these companies and their current share prices:
1- Caterpillar Corporation
Caterpillar Inc. manufactures and sells heavy equipment, including construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel and electric locomotives, worldwide.
Its construction segment offers asphalt pavers, compactors/rollers, cold pumps, earthmoving machines, pipe machines, road repair machines, road haulers, backhoe service vehicles and multi-specification trucks, skid steers.
What should you know about CAT stock?
Investors view sluggish global growth and see weak demand for bulldozers, heavy-duty tractors and other heavy construction equipment for years to come, so they couldn’t get past slowing demand in China and other developing countries and thought Caterpillar sales would suffer for many years.
Global growth has now shifted, and Caterpillar’s fortunes have changed with it.
The world economy is now growing rapidly which has greatly increased spending on major construction projects.
Rising prices for precious metals and base materials have prompted mines to expand, causing increased demand for mining equipment such as Caterpillar bulldozers and dump trucks.
As the leading provider of this heavy equipment, Caterpillar’s fortunes have returned and its share price has nearly tripled over the past year.
Caterpillar saw significant earnings growth in 2017 compared to 2016, and its 2018 numbers look to surpass 2017 numbers.
Analysts expect the company to report earnings per share of $7.73 in 2018, significantly higher than its earnings of $5.55 per share between the fourth quarter of 2016 and the third quarter of 2017.
Global growth shows no signs of slowing in the near term, which will continue to drive Caterpillar’s revenue, earnings and dividend payments higher.
Without a doubt, Caterpillar is one of Dow Jones’ best stocks this year.
Current price: $248
100% shareholding
0% commissions
0% additional costs
2- Walmart Inc. share
Walmart Inc. engages in retail and wholesale operations in various forms throughout the world. The company operates in three divisions: Walmart U.S.A. Walmart International and, Sam’s Club, operates hypermarkets, supermarkets, specialty supermarkets, warehouse clubs, cash shops, discount stores, pharmacies and many more.
The most important information about Wal-Mart WMT shares:
If you paid attention to the top speakers on CNBC, it would be easy to think that no one is shopping in physical stores anymore and everyone is buying everything on Amazon. However, the death of retail has been greatly exaggerated.
Walnut (NYSE: WMT) had its best year since the early dot-com days, and there could be more growth in the Dow Jones mainstay.
Wal-Mart doesn’t quite cater to Amazon’s online sales, but the e-commerce efforts can’t be outdone as Wal-Mart has dabbled in e-commerce to keep up with online shopping trends.
The company recently bought .com and a number of other smaller shopping sites.
It has added more online shopping and pickup options and increased the number of SKUs for sale on com
Wal-Mart has announced a new scan-and-go smartphone app that allows customers to skip checkout lines entirely as customers can simply pay for their items on their phones before they leave without having to deal with a cashier or one of their automated payment systems.
The move will allow Wal-Mart to further reduce labor costs, expand margins further and lower costs to consumers.
Some still think of Wal-Mart as a struggling retail giant unprepared for the e-commerce revolution, but Wal-Mart’s recent retail efforts prove that’s not the case.
Wal-Mart is arguably the best retailer on the Dow 30.
The current share price: $140
100% shareholding
0% commissions
0% additional costs
3- Pfizer shares
Pfizer Inc. develops, manufactures, markets, distributes and sells biopharmaceutical products worldwide. It also offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolism and pain, under the Eliquis, Chantix / Champix Premarin and even Corona family brands.
What should you know about PFE stock?
Pfizer has benefited from the recently passed tax reform bill
The company has struggled to stay competitive due to its high tax rate and huge piles of cash abroad and even tried to buy AstraZeneca (AZN) and Allergan (AGN) so it could move its headquarters to Europe and lower its corporate tax rate.
Regulators closed both deals before Pfizer could execute them.
Pfizer’s profits are $160 billion outside the country.
Before the tax bill was issued, she would have had to pay 35% tax if she wanted that money back to the US.
Now, she can only pay 14% on those taxes thanks to the tax reform law.
As Pfizer sees a large influx of capital, it will likely increase M&A activity, pay a higher dividend, and buy back his stock.
The company has already boosted its dividend by 6% to 34 cents a share and announced that it will buy back $10 billion of its stock since the passage of the tax reform law.
This is in addition to the previously announced $6.4 billion buyback plan.
Pfizer could be one of the best Dow Jones stocks to hold in the new year as those spending programs begin to take shape.
Do not forget the imaginary amounts that the company will earn from the Corona vaccine, which will continue to be produced for several years.
Current price: $43.81
100% shareholding
0% commissions
0% additional costs
4- McDonald’s shares
McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States and internationally. Its restaurants also offer many food and beverage products, as well as a breakfast menu.
As of December 31, 2020, the company operated 39,198 restaurants. McDonald’s Corporation was founded in 1940 and is headquartered in Chicago, Illinois.
What should you know about MCD stock?
McDonald’s finally made a comeback last year. It was one of Dow Jones’ best-performing stocks in 2017 thanks to efforts to streamline the menu, launch all-day breakfast and work to accelerate its lead lines.
The company also recently announced that it’s bringing back its Dollar Menu, with items listed at $1.00, $2.00, and $3.00. For example, a McChicken will be available for $1.00 in many markets and a new Bacon McDouble will be available for $2.00.
While upscale fast food chains like Five Guys and Culvers are doing well in the upscale market, McDonald’s is putting the focus back on its price-conscious core consumer again.
These cheap food items may not have the largest market share, but the company is more focused on market share and overall revenue.
McDonald’s is also launching more stores with kiosks and smartphone-based orders to shorten lines and get consumers’ food to go faster.
Current price: $264.25
100% shareholding
0% commissions
0% additional costs
5- NIKE shares
The Company, together with its subsidiaries, designs, develops, markets and sells athletic footwear, apparel, equipment and accessories worldwide. The company also offers NIKE brand products in six categories, including running, NIKE basketball, Jordan brand, soccer, training and sportswear.
What should you know about NKE shares?
Despite increasing competition from Under Armour, Adidas and other players, Nike continues to cash out to investors quarter after quarter and year after year.
Nike has recently taken a big initiative in e-commerce and is working to bring its products directly to the consumer.
Current price: $122.99