Dow jones index’s (djia) average annaual return was 13.41 % without dividend in 2016, which is almost double the yearly return of Dow or Average stock market Return. But all the Dow components did not perform well in 2016.
Number one performing Dow stock was Caterpillar Inc (CAT). CAT’s return was 42% in 2016. Stock made big really because Investors are expecting big infrastructure spending in USA.
New president desires to spend $I trillion for infrastructure development in USA may one of the reasons for the stock big return, since CAT is one of the major player in infrastructure sector in USA.
Second best performing stock was UNH with a hefty return 38.4% in 2016. This stock is health care stock. Investors was expecting big change Obamacare and health insurance will be beneficiary of that.
Third best performing stock was CVX, an oil giant. This stock return was 36.66% in 2016. Investors and traders think oil stock will be beneficiary of new president and oil made a rally from $30 to Mid $50. Oil rally also increased company net profit.
Fourth and Fifth best performing Dow stocks are GS and JPM in 2016. Both the stocks are financial sector stocks. As investors and traders expecting possible interest rate increase in the banking sector.
This will help bank to make more profit in future. GS return was 34.92 % and JPM return was 34.53% in 2016.
Among the 30 stock 28 stocks return were positive and 2 Dow stocks return were negative. NIKE Inc ( NKE) was highest looser Dow stock in 2016 that had negative return.
NKE lost 17.7 % in 2016. COCA-COLA(KO) is another Dow stock that negative return.
Dow Jones annual returns depends Dow 30 components stocks. These 30 Dow components and their yearly return are shown in the table in ascending order.
|DOW Stocks Name||Returns (%)|
8 Dow jones stocks return were more than 20 % in 2016. These stocks are CAT, UNH, CVX, GS, JPM, IBM, MMM, VZ.
15 DOW Jones Stocks had more than 15% return. Only 11 Dow stock return was less than 10 %. 19 Dow stock return was more than 10 % in 2016.