Investing

The Best Performing DJIA Stocks of 2014

The bull market may be five and a half years old, but stocks have been fighting each week to hit newer highs. The Dow Jones Industrial Average (DJIA) was up only 3.4% as of Tuesday’s mid-day trading, but the DJIA was up 11% from the lows seen at the start of February. 24/7 Wall St. wanted to track the best-performing Dow stocks of 2014.

It turns out that 10 of the 30 members of the DJIA were up more than 10% so far in 2014. That is substantial, particularly when we were looking for very muted upside in our first preview of the expected DJIA performance in 2014.

We have offered here a review on the 10 best DJIA stocks of 2014. Included is each stock’s price in its 52-week trading range, and each stock’s consensus analyst price target. Also included is a review of the trading history and market cap. Detailed color has been added on each as well, as well as the yield of each dividend to see how that has played into performance so far this year and what the dividend means versus the analyst target price.

While technology and health care are represented, there is an absence of key financial stocks and industrial conglomerates in the mix. These are the 10 best DJIA stocks so far in 2014.

DuPont

> Gain in 2014: 12.3%
> Div. Yield: 2.8%
> Share Price: $71.13
> Mean Price Target: $70.44
> 52-Wk. Range: $56.46 – $72.15
> Market Cap: $65.43 billion

E.I. du Pont de Nemours and Co. (NYSE: DD) is among the 10 best Dow stocks so far in 2013, which comes with some irony since it is under activist pressure from Nelson Peltz and Trian to break up the company. Much of its gain in 2014 has been in September. DuPont had taken some smaller activist-pleasing efforts prior to outside pressure, but that hasn’t been enough to appease an aggressive activist. The company comes with a solid dividend of 2.8%, it is among the top position among peers and competitors in most of its businesses, and it is a would-be winner in the global growth theme. Still, DuPont remains a boring company to most investors, and its stock price is just above its consensus price target.

ALSO READ: 6 More Expected Dow Dividend Hikes Before 2014 Ends

Caterpillar

> Gain in 2014: 13.2%
> Div. Yield: 2.8%
> Share Price: $100.52
> Mean Price Target: $113.05
> 52-Wk. Range: $81.87 – $111.46
> Market Cap: $63.35 billion

Caterpillar Inc. (NYSE: CAT) has been a very big surprise performer in 2014. The company’s international business remains pressured in its key growth markets, and North America has been the market that is driving the equipment machine forward. Investors are still hoping for global growth to resume, but mining has simmered down and the company’s forward P/E ratio for 2015 of just under 14 remains a discount to the broader market. Amazingly, analysts still see another 10% in share price upside, plus that dividend that is nearing 3% now. Caterpillar attracted value buyers at the start of 2014, and now the question seems to be whether they will chase it up because of a cheap earnings multiple.