These 3 Dow Stocks Have Solid Companies
While investing can get complicated quickly, over the years it usually works well to keep things simple by adding leading companies to your long-term investments. Whether investors are looking for safe stock choices in an uncertain macroeconomic environment or are simply interested in owning companies that can offer steady gains over the years, focusing on strong companies in the Dow Jones Industrial Average is usually a solid one. strategy. That said, not all components of the DJIA are worth looking at, especially given the way inflation and other factors could weigh on their earnings in the future.
That’s why we’ve decided to put together a list of 3 leading Dow stocks to buy right now so you can focus on owning the best of the best. Each of these companies has good growth prospects going forward and has dominant market positions in their respective sectors, making them excellent choices for long-term investors. Let’s take a closer look at what sets these stocks apart.
This company is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives and could be a great option for investors to consider right now. Caterpillar will benefit from a massive surge in infrastructure spending, both in the United States and abroad, while post-pandemic construction activity will also pick up. All of this is driving strong demand for Caterpillar’s iconic yellow heavy machinery, which should significantly boost the company’s sales in the coming quarters.
Caterpillar is also a good pick in the Dow Jones Industrial Average thanks to the company’s impressive balance sheet and an attractive 2.01% dividend yield. The company posted adjusted earnings per share of $2.69 in the fourth quarter, up 27% year-over-year, confirming that sales are recovering after a difficult period due to the pandemic. The bottom line is that Caterpillar is one of the most valuable brands in the world and a company that plays a key role in the global economy, making it a great option to consider right now.
Then we have Walmart, the largest retailer in the world by revenue. With more than 11,000 stores in North America and internationally, this is definitely a leading company that investors can rely on for stable earnings growth and steady dividend hikes. In fact, the company is a dividend aristocrat and has increased its payouts for 49 consecutive years. Walmart is a great stock to own right now, given inflation that is weighing on consumers, with many people interested in saving money on basic goods.
Keep in mind that the company has a purchasing power that helps it keep its prices low, which is certainly appealing to many retail consumers out there. There’s also a lot to like about Walmart’s investment in developing its omnichannel retail experience, which in the long run should lead to even greater industry dominance and provide a runway for good earnings growth. The company posted an adjusted EPS of $1.53 in the fourth quarter, up 10% year-over-year, and CEO Doug McMillon said the company has gained market share in the U.S. grocery and consumer goods market, which is definitely a big positive. to consider. Not many stocks will do well during booms and recessions, making this leading Dow stock a solid choice.
UnitedHealth Group (NYSE:UNH)
This leading US healthcare company is another great example of a quality company that investors can rely on for the long term. This is reflected in the fact that it is one of the few Dow stocks currently trading at all-time highs. It’s hard to underestimate the size of UnitedHealth’s business, as the company provides medical benefits to more than 50 million individuals. Whether it’s traditional risk-based health insurance, pharmacy benefit management, or healthcare delivery and optimization, it’s safe to say UnitedHealth plays a vital role in our nation’s healthcare system.
The company posted 12.6% revenue growth in the fourth quarter to $73.7 billion and is poised for a strong 2022 thanks to growth from Medicare Advantage members. There’s also a lot of positives about the company’s recent acquisitions, including the deal to buy an in-home health company called LHC Group for $5.4 billion. This move should help the company expand into a market that is growing rapidly as aging baby boomers increasingly seek home health care. UnitedHealth is certainly not a cheap stock, but often in the market it can really be worth going for quality.
This post 3 Leading Dow Stocks To Buy Now was original published at “https://www.entrepreneur.com/article/423553”