You know it is a bull market when you see major household names hitting 52-week highs. Right now we have many major stocks hitting fresh all-time highs! Should you be chasing the market? Maybe, but always keep in mind that at these inflection points you often see reversals for a variety of fresh and unforeseen reasons.
American Water Works Co. Inc. (NYSE: AWK) is the top water utility in America and hit a new high of $39.77. It still yields 2.6%, even at a new high. Its smaller rival is American States Water Co. (NYSE: AWR), and that hit a new high of $52.97 and still yields about 2.8%. While this is defensive by the nature of water, water has proven its place in every sort of investment portfolio by now.
Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-B) hit a new 52-week high on the A-shares, and the B-shares hit a high of $101.48 today, versus a prior 52-week high of $101.08. That is a high for sure on the B-share,s as they are still relatively new. The A-shares hit a new high of $153,159.98 today, against a prior 52-week high of $153,090.00. Its prior all-time high was $151,650.00 in December 2007. While Union Pacific Corp. (NYSE: UNP) is a transport, this shows that Buffett’s acquisition of the great BNSF railroad has added value. Union Pacific is now down 1% on the day but it hit a new high of $138, and it still yields 2% for new investors.
Elsewhere in conglomerates, we have two hitting new highs. Honeywell International Inc. (NYSE: HON) hit $71.09, and 3M Co. (NYSE: MMM) broke the prior high of $104.39 by a penny so far. Honeywell still yields about 2.3%, versus 2.5% at 3M.
Celgene Corp. (NASDAQ: CELG) hit a new high on its accelerated buyback plan announced this morning. The new high here is $103.69, versus a prior high of $102.29, and it has a market cap of $43 billion.
Google Inc. (NASDAQ: GOOG) broke $800 for the first time ever this week. The new all-time high as of today is $808.87, and the consensus Thomson Reuters price target is $831.40.
Several consumer products giants are continuing to surge. Oddly enough, these are defensive stocks more than they are deemed raging bull market stocks. Colgate-Palmolive Co. (NYSE: CL) hit a new high of $112.93 and still yields 2.3% for dividend investors. Kimberly Clark Corp. (NYSE: KMB) hit a new high of $92.60 today, and it still yields 3.2% for new investors chasing the stock for the first time. Procter & Gamble Co. (NYSE: PG) screened for a new high, but the 52-week high is actually a tad elusive because of what is likely the ex-dividend. P&G can tell its activist “Thanks, now go away!” Its dividend yield is still 2.9% for new first time buyers. The Clorox Co. (NYSE: CLX) is small for consumer products players at $10.8 billion in market cap, but with a new high of $82.85, its yield is still 3.1%.
United Rentals Inc. (NYSE: URI) is the equipment rental giant that was also a failed private equity buyout back during the private equity bubble. Shares hit a new high of $56.87 today, and its market cap is just under $5.2 billion.
The Walt Disney Co. (NYSE: DIS) is feeling the love and boom from its entertainment properties and its new Star Wars acquisition. This screened out as a new high, but that high was actually yesterday and was still worth noting. Disney may not raise its dividend massively, but it sure has a low yield for a DJIA stock.
We recently opined that the DJIA 14,000 is likely to bring upside to our official 2013 peak price of 14,590 this year. For that to happen, more and more of these companies will be hitting all-time highs on the DJIA.