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. (NYSE:TRV) 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. (NYSE:TRV) 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 (NYSE:MMM) 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 (NYSE:MMM) 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. (NYSE:GS) 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. (NASDAQ:HON) 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. (NASDAQ:HON) 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 (NYSE:MCD) 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 (NYSE:MCD) 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.
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