The 30 companies that make up the Dow Jones Industrial Average consist of healthy, mature, multinational brands that have proven their value over time. While the Dow 30 are doing quite well as a whole right now, three in particular are standing out above the rest. If you’ve been wanting to invest in a Dow company, any of these could be a great choice.
Coca-Cola (NASDAQ: COKE)
Beverage behemoth Coca-Cola is in a bit of a unique position among Dow stocks. Price-sensitive consumers are pulling back on unnecessary goods as inflation remains stubbornly high. But ultimately, Coca-Cola’s more than two dozen brands fall into the “necessities” category for many people. They don’t necessarily want to drink just plain tap water, so beverages aren’t as subject to inflationary pressures as many other types of goods.
The company also benefits from a global reach that few businesses can match. It has operations in nearly every country on the planet, except Russia, North Korea, and Cuba. It’s one of the best-known brands of all time, and it’s leaning heavily into AI and digital marketing to attract younger customers. With more than $1 billion in annual sales and a current forward price-to-earnings (P/E) ratio below 21, this is definitely a stock buy to consider.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson, popularly known as J&J, has fallen out of favor with Wall Street recently, primarily due to ongoing lawsuits over its discontinued talcum baby powder. But the company has plenty of cash to cover future settlements, and it’s working hard to leave the past behind. For more than 10 years, J&J has largely shifted its focus to the pharmaceutical and medical device sectors. It’s investing in research and collaborating with other companies, which has positioned the company nicely for future growth. Currently trading at a forward P/E of just 13.6, this could be a smart buy.
Amazon (NASDAQ: AMZN)
E-commerce giant Amazon has been on an absolute tear recently. Its online marketplace attracts nearly 2.5 billion people per month. Its cloud platform, Amazon Web Services (AWS), generates more than $100 billion in annual run-rate sales. Importantly, Amazon also has the exclusive rights to Thursday Night Football, which is driving impressive subscriptions to its Prime streaming service.
Some analysts continue to worry about a potential future recession, which could mean real trouble for Amazon’s e-commerce platform. But with so many lines of business and an incredible operating cash flow that’s primarily driven by channels other than e-commerce, Amazon is likely in great shape to weather any potential storm. It’s currently valued at just over 13 times consensus cash-flow estimate for 2025, making this an excellent time to invest.
Lisa Fritscher does not have positions in these stocks. Stocks.News has positions in all 3.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...