The Dow Jones Industrial Average has undergone many changes since its lengthy history. The index has been tracking 30 companies for more than a century, and recent changes have strengthened it. The Dow Jones has recently been kicking out underperforming stocks and replacing them with big tech companies.

Concentrating on the Magnificent Seven stocks has been a winning formula for several years. There is a fund called the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) that only has the Magnificent Seven stocks. It’s up by 40% year-to-date and has comfortably outperformed the S&P 500 and the Nasdaq Composite. 

Unsurprisingly, this list will feature Magnificent Seven stocks. You don’t have to fix what isn’t broken. However, some non-Magnificent Seven stocks in the Dow Jones are worth your attention. These are some of the top Dow stocks to buy that patient investors should monitor for long-term returns. 

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) has been regularly crushing the stock market as it expands into numerous verticals. Shares are up by 22% year-to-date and have gained 238% over the past five years. Microsoft’s recent gains come as the company perfectly positions itself for AI tailwinds. Copilot has strengthened Microsoft’s product line and makes it easier to explore new industries. Microsoft Cloud is also a beneficiary of artificial intelligence since the technology requires significant computing power and storage.

Revenue increased by 17% year-over-year in the third quarter of fiscal 2024. Net income jumped by 20% year-over-year during the same timeframe. While Microsoft has many business segments, cloud computing is the most important component. Microsoft Cloud generated over half of the company’s total revenue and grew by 23% year-over-year.

Many Wall Street analysts are bullish about the stock’s long-term prospects. Microsoft is rated as a Strong Buy with a projected 11% upside from current levels.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) is another Magnificent Seven stock in the Dow Jones Industrial Average that is worth your attention. The tech conglomerate makes up roughly 3.25% of the price-weighted Dow Jones. Shares have picked up momentum recently and are up by 32% year-to-date. The stock has more than doubled over the past five years and briefly touched a $2 trillion market cap.

The company is also primed to benefit from cloud computing through Amazon Web Services. This segment generated $25.0 billion in revenue, up 17% year-over-year. Amazon accumulated $143.3 billion in Q1 2024 revenue, which is 13% higher than last year’s revenue. Online marketplace sales achieved double-digit growth rates in domestic and international markets.

Amazon is a leader in multiple verticals that should continue to grow. Advertising, streaming, gaming and grocery shopping are some industries in which Amazon is a top player. The tech conglomerate has multiple ways to expand its revenue.

American Express (AXP)

American Express (NYSE:AXP) is the only stock on this list that isn’t a member of the Magnificent Seven. The fintech firm still holds its weight with a 21% year-to-date gain and an 85% 5-year gain. Unlike most fintech firms, American Express still trades at a reasonable valuation. Shares are valued at a 19 P/E ratio and have a 1.23% yield. American Express has regularly maintained a double-digit dividend growth rate for several years, suggesting that cash flow will continue to grow.

The financial company is poised to withstand economic uncertainty since people always use their credit and debit cards for expenses. These cards are more convenient than cash and come with great rewards, such as cash or points back on every purchase. Revenue and earnings growth are still strong, with those metrics improving by 11% and 34% year-over-year in the first quarter. 

More than 60% of new account openings came from millennials and Gen Z consumers, indicating that American Express is winning over younger generations. Appealing to the next generations is a critical component of companies that survive and thrive for decades and eventually centuries.

On this date of publication, Marc Guberti held long positions in MSFT and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.