On March 12, 2021, the Dow Jones Industrial Average, which will complete its 125 years of existence in May 2021, ended the session at an all-time high level of 32,778.64 after sliding a bit from a record high of 32,793.32 in the intra-day session. Away from the limelight that Nasdaq 100 and S&P 500 have been stealing so far, the good-old Dow 30 index has been slowly and steadily making its way to levels never seen before in its history.
Under the new President Joe Biden and the hope of additional stimulus funds recently passed by Congress, the markets are looking all set to conquer new levels in the long term. The short term corrections, however, may not be ruled out keeping the rising yield scenario in the US economy. It remains to be seen how the US Fed tames the impending risk from inflation as and when growth recovers in the economy.
2021 may still be witness to a comeback of some of the old-economy stocks and Dow 30 could be the index to watch. Dow Jones Industrial Average or Dow 30 as is popularly known on Wall Street, consists of the top 30 blue-chip companies that represent companies that are only based in the US. Therefore, in a way, Dow is a barometer of the US economy, its businesses and the consumption trends in the country. Some of the prominent companies in the 30-stocks index are Boeing, Nike, Goldman Sachs, Walmart, Intel, 3M, UnitedHealth Group, Apple, Coca-Cola, McDonald’s, Microsoft etc.
Unlike other indices, in Dow 30, the selection is not governed by quantitative rules but as per the S&P indices website, “a stock is added to the index only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”
Still, the top 15 Mega Cap stocks with more than $200B of market capitalization in Dow 30 are:
1. Apple Inc. – Technology
2. Microsoft Corporation – Technology
3. JPMorgan Chase & Co.- Financial
4. Visa Inc. – Financial
5. Johnson & Johnson – Healthcare
6. Walmart Inc. – Consumer Defensive
7. The Walt Disney Company – Communication Services
8. UnitedHealth Group Incorporated – Healthcare
9. The Procter & Gamble Company – Consumer Defensive
10. The Home Depot, Inc. – Consumer Cyclical
11. Intel Corporation – Technology
12. Verizon Communications Inc. – Communication Services
13. NIKE, Inc.- Consumer Cyclical
14. The Coca-Cola Company – Consumer Defensive
15. Chevron Corporation – Energy
Investing in US stocks brings in diversification to your Indian portfolio and also gain from the currency fluctuations over the long term. Owning stocks of top American companies is simple and easy and can be done by opening an international trading account.
Disclaimer: The investing decision in these or any other stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks. Financial Express Online does not bear any responsibility for their investment advice.