3 Dividend Stocks to Celebrate the 125-Year Anniversary of the Dow Jones Industrial Average
Distilling & Cattle Feeding Co, The American Sugar Refining Company, and the United States Rubber Company are just three of the 12 businesses Charles Dow selected to reflect the American economy on May 26, 1896. Adding up the prices of these companies and dividing them by 12, he made what is today the oldest and longest-running U.S. stock index.
Fast forward to 2021, and the index consists of 30 companies, only six of which are materials, industrials, or energy stocks. A rotation out of growth toward income and value has helped the Dow Jones Industrial Average (DJIA) outperform the S&P 500 and the Nasdaq Composite so far this year. From Warren Buffett to Cathie Wood, several popular investors own at least a few stocks in the DJIA.
A lot has changed over the past 125 years, and the DJIA looks nothing like it used to. However, many investing fundamentals haven't changed. A core objective of selecting stocks is to find quality businesses at attractive prices and let them appreciate over time. Dividend stocks provide guaranteed income to help increase the total return of an investment. Caterpillar (NYSE: CAT), Chevron (NYSE: CVX), and Procter & Gamble (NYSE: PG) are three of the Dow's top dividend stocks. Here's what makes each an excellent buy now.
Source Fool.com
