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2017 Dow Jones Industrial Average And Its Dow 30 Return

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Dow Jones Industrial Average And Its Dow 30 components had a fabulous year in 2017. Dow gained 25% in a single year which is more than 3 times its average yearly gain.  This is the best performing year for Dow after 2013.

2017 Dow Performance
2017 Dow Performance

Dow had 9 months positive return and 3 months negative return. Dow lost more than 2% in march, 2017. However, Dow gained more than 4% in February and march.

Dow-2017monthlyreturn
Dow-2017monthlyreturn

 

Even though Dow Jones had a great year all the stocks in the index did not do well. Some stocks had great return in 2017, while some stocks were losers in 2017.

 

Dow 30 Returns 2017
Dow 30 Returns 2017

 

Best  5 gainers in Dow were Boeing, Caterpillar, VISA, apple Inc., Wal-Mart.

Boeing(BA):

Boeing(BA) achieved Dow’s best performer stock rank for 2017 with a gain of 89.4%. Boeing gained this status because of its some big orders from the buyers.

Caterpillar(CAT)

Dow’s second-best performer was Caterpillar with a yearly gain 69.9%.  Industrial did pretty well in 2017. As a leader of industrial sector, Caterpillar had a great year in 2017.

Even though at the beginning 2017, stock had some news regarding tax fraud investigation. However, at the end of the year, Stock was one of the best performer in 2017 for both DOW and S&P 500.

VISA(V):

Third best performer is VISA. Visa is credit card company. As we all know that world is moving towards the cashless economy. Credit card companies are pioneer of that movement.

As one of the  best performing credit card company, this is no wonder  that VISA performed extremely well in 2017. Stock gained 46.14% in 2017.

Apple(AAPL):

Apple is the fourth best performer stock in Dow jones index. Apple is not only largest tech company in the world, this is also the largest company of the world by market cap. After 2 lackluster year of performance, Apple came back to growth in 2017 and was one of the best performer of both Dow and S&P 500 components.

Especially iPhone X, Apple watch  were the key drivers of the company’s success. Apple service sector is also growing up more than 20 % every year, which is also a catalyst for apple growth. Apple service sector revenue alone more than fortune 100 company revenue.

Apple has almost 300 billion cash in hand. Because of new tax law, apple has to pay less tax for this cash. This could be another catalyst for stock growth in 2017. Investors may see tax reform impacts also in 2018.

Apple had a great year in 2017. Stock gained 46.11% in 2017.

Wal-Mart(WMT):

Wal-Mart was 5th best performer stock of the Dow in 2017.  Once Walmart was number 1 revenue earner company of USA. Because of Amazon more dominant role in retail sectors, some investors were thinking Wal-Mart lost  its dominance completely in retail sector.

This is true that Walmart lost some of its consumers to the amazon. However, 2017 stock growth shows that  Walmart knows how to compete with online giant amazon. Walmart return was 42.9% in 2017. That one of the best return among retail sector stocks in 2017.

 

M1 Finance

DOW performance(Yield) table 2017

Symbol
Company
Price((December 31,2016)
 
Price(December 31,2017)
Yield
BA Boeing 155.68 294.91 89.43%
CAT Caterpillar 92.74 157.58 69.92%
V Visa 78.02 114.02 46.14%
AAPL Apple 115.82 169.23 46.11%
WMT Walt-Mart 69.12 98.75 42.87%
MCD McDonald’s 121.72 172.12 41.41%
HD Home Depot 134.08 189.53 41.36%
UNH United Health Group 160.04 220.46 37.75%
MSFT Microsoft 62.14 85.54 37.66%
AXP American Express 74.08 99.31 34.06%
MMM 3M 178.57 235.37 31.81%
INTC Intel 36.27 46.16 27.27%
CSCO Cisco Systems 30.22 38.3 26.74%
DWDP Dow DuPont 57.22 71.22 24.47%
JPM JP Morgan Chase 86.29 106.94 23.93%
NKE Nike 50.83 62.55 23.06%
JNJ Johnson & Johnson 115.21 139.72 21.27%
UTX United Technologies 109.62 127.57 16.37%
PFE Pfizer 32.48 36.22 11.51%
TRV The Travelers Companies 122.42 135.64 10.80%
KO Coca-Cola 41.46 45.88 10.66%
PG Procter & Gamble 84.08 91.88 9.28%
GS Goldman Sachs 239.45 254.76 6.39%
CVX Chevron 117.7 125.19 6.36%
DIS Disney 104.22 107.51 3.16%
VZ Verizon 53.38 52.93 -0.84%
MRK Merck 58.87 56.27 -4.42%
XOM Exxon Mobil 90.26 83.64 -7.33%
IBM International Business Machines 165.99 153.42 -7.57%
GE General Electric 31.6 17.45 -44.78%

 

On the hand, worst performers in Dow  for 2017 were General Electric, IBM, Exxon Mobil, Merck, Verizon.

General Electric(GE)

General Electric lost 44.8% its value in 2017, which is also worst performer of the Dow Index in 2017.

IBM

Dow second worst performer is IBM. This stock lost 7.6% of its value in 2017. Even though 2017 was one of the best year for tech stock, this Big Blue performed bad in 2017. Hope IBM will come back to its pace in 2018.

Exxon Mobil(XOM)

Thirst worst performer in Dow stock is  Exxon Mobil. This stock lost 7.3% of its value in 2017. 2017 was not that good year for energy sector because of depressed oil price. Since oil price is showing upward movement, we can expect that energy stock will get extra momentum in 2018. So we expect Exxon Mobil will have a great year in 2018 at least compare to 2017.

Merck(MRK):

Forth worst performer stock was Merck. 2017 was not good year for biopharma and medicine stock.  As a consequence, we can see Merck as a pharmaceutical did not perform that well because the whole pharmaceutical sector was struggling in 2017. We can see a good year for Merck  if pharmaceutical sector get momentum in 2018.

Verizon(VZ):

Fifth stock in this group is Verizon. This stock lost .84% value in 2017. Even though with its big dividend, investors did not lose any money in this stock. This stock may have good year in 2018.

 

Dow Top Dividend stocks 2017: Dogs of the Dow and small Dogs of the Dow:

Dow components  are not only a blue chip stocks but also a good source of dividend income. Among the top 10 Dow dividend stocks, 9 was paying more than 3% dividend in 2017. Dow top 10 dividend stock is also known as dogs of the Dow.

Symbol
Company Name
Price(12/31/17)
Dividend Yield(12/31/17
VZ Verizon 52.93 4.46%
IBM International Business Machines 153.42 3.91%
PFE Pfizer 36.22 3.75%
XOM ExxonMobil 83.64 3.68%
CVX Chevron 125.19 3.45%
MRK Merck 56.27 3.41%
KO Coca-Cola 45.88 3.23%
CSCO Cisco Systems 38.3 3.03%
PG Procter & Gamble 91.88 3.00%
GE General Electric 17.45 2.75%

Source: DogoftheDow.com

Among the top 10 dividend yield stocks, 5   lowest priced stocks are known as small Dogs of the Dow.

Historically, Dog of the Dow and small Dogs of the Dow both had higher return than the 30  Dow jones original stocks. According to dogsofthedow.com, Dogs of the Dow return was 8.6% and small dogs of the Dow  average return was 10.4% since 2000. Dow Jones industrial index and S&P 500 return was 6.9%  and 6.2% consecutively since 2000.

However , this year Dog of the Dow average return was only 15.41% and Dow Jones index return was 25.1%. Dow Jones index beat the dogs of the Dow with  high margin this year.

Not only dog of the Dow return was lower this year, most worst performer stocks this was dogs of the Dow. This year 5 Dow stocks had negative return. All of them are dogs of the Dow. Worst performing dogs of the Dow was general electric.

 

Dow index is considered as breath of the market. Historically Dow Jones yearly return is also considered as stock market return. Dow return in 2017 was one of the best return of the Dow in last 10 year. In fact, after great recession this is the second year Dow had more than 25% return.

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