Since its creation, the Dow Jones Industrial Average has become one of the representatives of the overall health of the stock market. Thirty companies make up the Dow Jones and the index, on occasion, changes the holdings due to mergers and acquisitions, and also to better represent the overall market. In 2017, the Dow Jones Index is up nearly 5%.
All 30 Dow Jones stocks are large stocks with market caps all over $30 billion. Dividends are paid by all thirty components as well. With a wide range of dividend yields, sectors and market cap size, there are many ways to consider investing in the Dow Jones Industrial Average.
Investors looking to capture the gains of the entire index should consider the large SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). Other ETFs and mutual funds also follow the index, but this is the largest and easiest way for investors to get exposure to the Dow Jones stocks.
As far as individual stock picking in the index, investors should look at which stocks have produced minimal gains or fallen in 2017. Catalysts like new drugs, market expansion and bullish growth cycles in their sectors are also signs of a potential winning stock.
With that in mind, here are the three best Dow Jones stocks to buy right now.