The Dow Jones industrial average is a price-weighted index of 30 blue-chip U.S. stocks that are often industry leaders. It is the oldest U.S. market index, dating back over 100 years, and has been a followed stock market indicator since 1928. The Dow is considered the most recognizable stock indicator in the world and is also the only index made up of companies that have consistently performed well over an extended period.
The losing streak remained intact on Wednesday after the Federal Reserve disappointed the market, saying only two interest rate cuts for 2025 instead of four. The now 10-day losing stretch was the Dow’s first since 1974, a stunning 50 years ago. Then, the Dow traded at about 760 points, less than 2% of today’s more than 42,326. With a 13%+ gain still on the books for 2024 and the possibility for a strong end-of-the-year rally, it is a good bet the venerable blue-chip index could end the year up close to 17%.
We screened the 30 stocks in the index, looking for the dividend-paying leaders that have been pounded. Three top companies look like incredible values now for growth and income investors. All three dominate the health care sector, where they reside, and all three are rated Buy at the firms that 24/7 Wall St. covers regularly.
Why do we cover Dow Jones industrials dividend stocks?
Investing in large-cap dividend Dow stocks provides regular income through dividends from established and financially stable companies. These stocks offer lower volatility and the potential for capital appreciation.
Amgen
Amgen discovers, develops, manufactures, and delivers human therapeutics worldwide.
This biotech giant remains a top stock for investors to buy and a safer way to play the massive potential growth in biosimilars while paying a hefty 3.68% dividend. Amgen Inc. (NASDAQ: AMGN | AMGN Price Prediction) discovers, develops, manufactures, and delivers human therapeutics worldwide.
Amgen focuses on:
- Inflammation
- Oncology/hematology
- Bone health
- Cardiovascular disease
- Nephrology
- Neuroscience
The company’s products include:
- Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis
- Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
- Prolia to treat postmenopausal women with osteoporosis
- Xgeva for skeletal-related events prevention
- Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease
- Aranesp to treat a lower-than-normal number of red blood cells and anemia
- Kyprolis to treat patients with relapsed or refractory multiple myeloma
- Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization
Although the shares are down almost 5% this year, Jefferies has a Buy rating and a $380 target price.
Johnson & Johnson
Johnson & Johnson is a multinational American pharmaceutical, biotechnology, and medical technology company.
With a diverse product base and a very popular and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical plays and pays a solid 3.43% dividend. The company researches, develops, manufactures, and sells various products in the health care field worldwide.
The company’s Innovative Medicine segment offers products for various therapeutic areas, such as:
- Immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis
- Infectious diseases, including HIV/AIDS
- Neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia
- Oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer
- Cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration
- Pulmonary hypertension comprising pulmonary arterial hypertension
Its MedTech segment provides Interventional Solutions, including:
- Electrophysiology products to treat heart rhythm disorders
- The heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock
- Neurovascular care that treats hemorrhagic and ischemic stroke.
This segment also offers an orthopedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and others:
- Surgery portfolios comprising advanced and general surgery technologies, as well as solutions for breast aesthetics, ear, nose, and throat procedures
- Contact lenses under the ACUVUE Brand
- TECNIS intraocular lenses for cataract surgery
Johnson & Johnson stock is down almost 9% this year. Cantor Fitzgerald has an Overweight rating and a massive $215 target on the shares.
Merck
This company develops and produces medicines, vaccines, biological therapies, and animal health products.
Merck & Co. Inc. (NYSE: MRK) is not just a health care company but a global force in the industry while paying a solid 3.29% dividend. The company operates through two segments:
- Pharmaceutical
- Animal Health
The Pharmaceutical segment offers human health pharmaceutical products in:
- Oncology
- Hospital acute care
- Immunology
- Neuroscience
- Virology
- Cardiovascular
- Diabetes
- Vaccine products, such as preventive pediatric, adolescent, and adult vaccines
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.
Merck serves:
- Drug wholesalers
- Retailers
- Hospitals
- Government agencies
- Managed health care providers, such as health maintenance organizations
- Pharmacy benefit managers and other institutions
- Physicians
- Physician distributors
- Veterinarians
- Animal producers
Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.
Merck is down 3.11% in 2024. BMO Capital Markets has an Outperform rating and a $136 target price objective.
Jim Cramer Says 4 Large Cap Dividend Stocks Are Sizzling December Buys
Top Gaining Stocks
Top Losing Stocks