In this article, we will take a look at the 10 Best Dow Stocks to Invest In Now.
The Dow Jones Industrial Average closed above 50,000 for the first time in its nearly 130-year history on February 6, 2026. It was the third time this decade the index cleared a 10,000-point milestone. Each step has come a bit quicker. This one took less than two years after it first moved past 40,000.
The ETF Stream reported that the Dow has managed to stay relevant by evolving with the broader market. Since May 1896, there have been 136 changes to its constituents. More recent updates have helped it better reflect shifts across sectors. Those changes have also affected how long companies tend to stay in the index. When the Dow expanded from 12 stocks to 20 in 1916, and then to 30 in 1928, the average tenure dropped in the early years.
Later on, a long stretch with fewer changes pushed the average tenure up to about 48 years by the mid-1980s. That has come down again over time. By the end of January 2026, the average tenure was around 25 years. The Dow works differently from many other indices. Its 30 components are weighted by share price, not market value. The S&P 500, for example, uses market capitalization.
A recent shift away from tech stocks has supported more economically sensitive names, which tend to carry more weight in a price-weighted index like the Dow. On April 20, the Dow Jones Industrial Average slipped 4.87 points, or 0.01%, to close at 49,442.56. The move came after tensions between the US and Iran escalated over the weekend.
Given this, we will take a look at some of the best Dow stocks to invest in.
Francisco Amaral Leitao / shutterstock.com
Our Methodology:
For this article, we began with a pool of 30 stocks from the Dow Jones Industrial Average (DJIA) and identified stocks with positive analyst sentiment. From that group, we limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 58
The Travelers Companies, Inc. (NYSE:TRV) is one of the best Dow stocks to invest in.
On April 20, BMO Capital raised its price recommendation on The Travelers Companies, Inc. to $314 from $297. It reiterated an Outperform rating on the shares. The firm expects the company’s EPS revision trendline to move above consensus over the next 1–2 years. It pointed to more conservative reserve loss-ratio profit margin assumptions as a key driver, the analyst noted in a research report. BMO also sees potential upside to EPS from net investment income. It highlighted the spread between new money rates and existing bond yields. Buybacks could add support as overall growth begins to slow.
On April 20, Roth Capital raised its price goal on TRV to $345 from $320. It kept a Buy rating on the shares. The firm cited Q1 results that came in ahead of expectations. This was largely due to more favorable loss reserve development than it had modeled, according to the analyst. It also pointed out that underwriting performance remained strong. The company reported a combined ratio of 88.6% and an underlying combined ratio of 85.3%, which the firm described as solid.
The Travelers Companies, Inc. provides property and casualty insurance across auto, home, and business markets. Its operations are divided into Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.
9. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 62
3M Company (NYSE:MMM) is among the best Dow stocks to invest in now.
On April 13, Citigroup lowered its price recommendation on 3M Company to $166 from $175. It kept a Neutral rating on the shares. The firm made the change as part of its Q1 preview across the industrials group. Citi said “gradually improving” industrial trends are still in place and should support solid Q1 earnings for most companies in the sector.
On April 1, Wells Fargo analyst Joseph O’Dea lowered the firm’s price goal on MMM to $160 from $175. It reiterated an Overweight rating. The firm said the Middle East conflict did not lead to a noticeable rise in caution during its recent calls. At the same time, it noted that tariffs had stalled a PMI recovery last year. Wells now sees a similar risk, where a new layer of uncertainty could weigh on sentiment until there is a clearer direction.
Earlier in March, 3M announced a partnership with Bain Capital to acquire Madison Fire & Rescue for $1.95 billion. The deal sets up a joint venture. 3M will hold a 50.1% stake and contribute its Scott Safety unit, while receiving $700M in cash. The combined business is expected to broaden 3M’s safety portfolio and strengthen its offerings for firefighters and industrial workers. The transaction is expected to close in the second half of 2026.
3M Company operates as a diversified technology company, manufacturing and marketing a wide range of products and services. Its segments include Safety and Industrial, Transportation and Electronics, and Consumer.
8. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 78
On April 14, Argus Research maintained a Buy rating on The Goldman Sachs Group, Inc. (NYSE:GS). It also set a $1066 price target following its Q1 results. The firm pointed to strong activity in investment banking during the quarter. It noted that recent geopolitical events could slow momentum in the near term. Still, it expects a more durable rebound in the segment as CEO confidence improves and lower interest rates support more favorable financing conditions, the analyst said in a research note.
Also on April 14, Reuters reported that Goldman Sachs’ asset management division plans to launch its first cryptocurrency exchange-traded fund in the coming months, citing a filing with the U.S. Securities and Exchange Commission. The ETF is designed to provide exposure to bitcoin’s price and generate income from bitcoin options transactions. The move comes shortly after Morgan Stanley introduced its own spot bitcoin fund, the Morgan Stanley Bitcoin Trust ETF.
Both banks are rolling out these products in a challenging environment for cryptocurrency investments. Prices have declined in recent months, with weaker risk sentiment tied to volatility in precious metals, a broad selloff in technology stocks, and the U.S.-Israeli conflict involving Iran.
The Goldman Sachs Group, Inc. operates as a global financial institution, offering a wide range of services to corporations, financial institutions, governments, and individuals. Its business segments include Global Banking & Markets, Asset & Wealth Management, and Platform Solutions.
7. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 79
Honeywell International Inc. (NASDAQ:HON) is one of the best Dow stocks to invest in.
On April 20, Reuters reported that Honeywell International Inc. had agreed to sell its productivity solutions and services unit to Brady Corporation in an all-cash deal worth $1.4 billion. The move is part of a broader effort to simplify the company’s structure. Honeywell had already pointed in this direction back in July, when it began reviewing strategic options for two of its businesses, including the PSS unit, as it prepares to separate into aerospace, automation, and advanced materials operations.
The PSS unit makes mobile computers, barcode scanners, and printing systems used in warehouse and logistics settings. The deal is expected to close in the second half of 2026. Brady said it expects the acquisition to be double-digit accretive to adjusted profit within the first year after closing. That’s a meaningful contribution early on.
Brady produces labels, signs, safety devices, and printing systems used across industries like electronics, manufacturing, and aerospace.
Honeywell International Inc. operates as an integrated company serving a wide range of industries and regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform, with offerings across aerospace, building automation, industrial automation, process automation, and process technology.
6. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 91
On April 20, KeyBanc Capital Markets lowered its price recommendation on McDonald’s Corporation to $345 from $354. It reiterated an Overweight rating on the shares. For Q1 restaurant earnings, the firm said the main focus will be on April and quarter-to-date trends, along with updated 2026 outlooks. These updates are expected to reflect a more uncertain and volatile macro environment.
Earlier in April, McDonald’s said it would introduce menu items priced at $3 or less and offer a $4 breakfast meal deal in the U.S. The move is aimed at attracting price-conscious customers dealing with economic pressure. CEO Chris Kempczinski said in February that there were signs the company’s value strategy was gaining traction. He pointed to increased visits from lower-income customers.
Last year, the company began subsidizing franchisees’ “extra value” meals as costs for some inputs, including beef, stayed elevated. Kempczinski also said the company does not plan to subsidize pricing on a permanent basis.
McDonald’s Corporation operates as a global foodservice retailer. Its segments include the U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The U.S. remains its largest market and is about 95% franchised.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 104
Johnson & Johnson is one of the best Dow stocks to invest in.
On April 20, Guggenheim Partners raised its price recommendation on Johnson & Johnson to $266 from $244. It reiterated a Buy rating on the shares. The firm updated its model after the company’s Q1 earnings and took a closer look at the Icotyde opportunity following its approval in plaque psoriasis last month. It now sees higher potential from the drug, raising its unadjusted peak revenue estimate to $14.9 billion from about $10 billion, the analyst noted.
During the Q1 2026 earnings call, Vice President of Investor Relations Darren Snellgrove said worldwide sales reached $24.1 billion for the quarter. He also reported net earnings of $5.2 billion, with diluted EPS at $2.14 and adjusted diluted EPS at $2.70.
Executive Vice President and CFO Joseph Wolk said the company ended the quarter with around $22 billion in cash and marketable securities, along with $55 billion in debt. He added that free cash flow came in at about $1.5 billion for the quarter. The board also approved a 3.1% increase in the annual dividend, bringing it to $5.36 per share.
Johnson & Johnson operates across the healthcare sector, focusing on the research, development, manufacturing, and sale of a wide range of products. Its business is organized into two segments: Innovative Medicine and MedTech.
4. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 114
On April 15, Reuters reported that Walmart Inc. (NASDAQ:WMT) is redesigning its private-label brand “Great Value” as more shoppers shift toward lower-priced store brands. The brand, first introduced in 1993, will see changes across nearly 10,000 food and consumables items. Walmart said this is its first major refresh of the brand in more than a decade.
The rollout will take place over two years. It will start with salty snacks and then expand gradually across other categories. The updated packaging will include clearer nutritional information and benefit claims across all “Great Value” food items. Scott Morris, senior vice president of private brands at Walmart US, said the refresh will not affect the products themselves or their pricing.
The redesign follows an earlier move by Walmart to remove synthetic dyes from its private-label foods, including Great Value, by January 2027. The change reflects shifting consumer preferences, influenced in part by the growing use of GLP-1 weight-loss drugs.
Walmart Inc. operates as a technology-driven omnichannel retailer. The company runs retail and wholesale stores, clubs, eCommerce platforms, and mobile apps across the US, Africa, Canada, Central America, Chile, China, India, and Mexico.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 145
UnitedHealth Group Incorporated (NYSE:UNH) is among the best Dow stocks to invest in.
On April 20, Jefferies raised its price recommendation on UnitedHealth Group Incorporated to $373 from $340. It reiterated a Buy rating on the shares. The firm updated its estimates across managed care names after taking a closer look at health insurance plans offered on the Health Insurance Exchange.
On April 17, Morgan Stanley named UnitedHealth as a Top Pick. The firm told investors that this “is not necessarily a call on the quarter, but a call on what should be a string of clean quarters that should drive incremental enthusiasm.” It also sees potential for “meaningful upside” to FY27 Street estimates, supported by a more favorable Final Medicare Advantage rate. Morgan Stanley maintained an Overweight rating and set a $375 price target on the shares.
UnitedHealth Group Incorporated operates as a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which covers Employer & Individual, Medicare & Retirement, and Community & State markets.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 169
According to a report by CNBC on April 20, Apple Inc. (NASDAQ:AAPL) is preparing for a leadership change, with Tim Cook set to step down as CEO and transition to executive chairman on September 1. The company said John Ternus, its senior vice president of hardware engineering, will take over as CEO and join the board. Arthur Levinson is expected to become the lead independent director. Cook will remain in the CEO role through the summer to help manage the handover.
This will be Apple’s first CEO transition since Cook replaced Steve Jobs in 2011. Over that period, the company’s market value expanded more than 20-fold, reaching $4 trillion. Apple also said Johny Srouji will take on a broader role as chief hardware officer, stepping into Ternus’s responsibilities. Cook made the following statement:
“It has been the greatest privilege of my life to be the CEO of Apple and to have been trusted to lead such an extraordinary company. I love Apple with all of my being, and I am so grateful to have had the opportunity to work with a team of such ingenious, innovative, creative, and deeply caring people who have been unwavering in their dedication to enriching the lives of our customers and creating the best products and services in the world.”
The transition comes as Apple deals with supply chain pressure, geopolitical risks, tariffs, and rising demand for AI-related hardware.
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and also provides a range of related services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Dow stocks to invest in.
On April 20, Bank of America raised its price recommendation on Amazon.com, Inc. to $298 from $275. It reiterated a Buy rating on the shares. Ahead of the company’s Q1 report scheduled for April 29, the firm now expects revenue of $178.4 billion and EBIT of $21.4 billion. That sits above Street estimates of $177.1 billion and $20.7 billion, the analyst said in a preview note. The firm also lifted its year-over-year AWS growth estimate to 28%, compared to the Street at 25%. It added that expectations could reach as high as 29%.
Also on April 20, CNBC reported that Amazon has agreed to invest up to $25 billion in Anthropic, adding to the $8 billion it has already invested in the artificial intelligence startup. The expanded agreement is focused on building out AI infrastructure.
Anthropic said it plans to spend more than $100 billion on Amazon Web Services over the next 10 years. This includes current and future versions of Trainium, Amazon’s custom AI chips. The company also said it has secured up to 5 gigawatts of capacity to train and run its Claude AI models.
Amazon’s investment includes $5 billion upfront, with up to $20 billion more tied to certain commercial milestones, according to the release. The initial investment is based on Anthropic’s latest valuation of $380 billion.
Amazon.com, Inc. offers a wide range of products and services. Its retail platform includes items it buys for resale, along with products sold by third-party merchants.
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