3 Best Dow Jones Industrials For 2010

The Dow Jones Industrial Average (DJIA) is probably the most widely watched market index in the world. Even though it's composed of only 30 American companies, the Dow has become synonymous with the strength and/or weakness of equity markets globally. This year, the index, as represented by its proxy, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), is up by roughly 5.8%.

Since it was founded in 1896, the components of the index have been changed nearly 50 times. Below we list the best performing Dow components year-to-date.

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Cat in China
Caterpillar, Inc. (NYSE:CAT) is one of the world's foremost manufacturers of construction and mining equipment. With a market cap of better than $50 billion, Caterpillar has been a Dow component for nearly 20 years. The stock trades with a dividend yield of 2.2% and sports a P/E of 32.8.

Caterpillar just announced plans to build an additional manufacturing plant in China to meet the growing demand for its products in that country. Its facility in Wujiang will begin producing the company's mini hydraulic excavator by 2012.

Year-to-date, Caterpillar shares lead the Dow pack, climbing around 40%.

Aging Dow Component
Second in the Dow derby for 2010 sits E.I. Du Pont de Nemours & Company (NYSE:DD), up 38.6% since the beginning of 2010. That beats the rest of the materials sector, as represented by the Materials Select Sector SPDR ETF(NYSE:XLB), which has advanced just 3% since the year began.

Du Pont is engaged in chemical production for a variety of industries, including agriculture, food, building, electronics and pharmaceuticals, to name a few.

Du Pont stock premiered on the Dow Industrials in 1924. It currently pays a 3.5% dividend and trades with a P/E of 13.6.

Flying in 2010
The Boeing Company (NYSE:BA) pays a dividend of 2.4% and has a one-year trailing multiple of 52.8-times earnings. Since the year began, BA stock has climbed almost 28%, putting it in third place amongst the Dow's 30 components for the year.

Boeing is an aerospace giant with a market capitalization in excess of $50 billion that builds commercial jetliners, satellites, military aircraft and missile defense systems.

The company just announced it was ramping up production of its Next Generation 737 aircraft from 25 to 38 aircraft per month beginning in 2013. This is due to a backlog of 2,000 such planes that have yet to be delivered.

The Wrap
Some of the old, standard industrials of the Dow have been tremendous performers in 2010. Which goes to show that well-managed big caps can appreciate with even the lithest, most 'modern' of growth phase companies. (For related reading, see 5 Dow 30 Stocks With Huge Dividends.)



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