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Dynamic Duo Leads Dow Stocks YTD
Though the Dow Jones 30 is barely treading water for the year, there are a couple individual Dow components that are on a tear as of late. Let's take a look at the reasons for their success.
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The Boeing Company (NYSE:BA) is this year's best Dow performer by a long shot. Boeing's shares are up by an outsized 25% since the New Year and currently yield an annual 2.5%. And Boeing's recent performance is no flash in the pan. For the last twelve months the company has seen gains of 125%.
Compare this to the Dow Jones Industrials as represented by the SPDR Dow Jones Industrial ETF, a.k.a. the "DIAmonds" (NYSE:DIA) which returned a minute 1.5% YTD and less than 60% for the past year.
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Boeing recently penned a deal with United Airlines (Nasdaq:UAUA) for 25 of its 787 Dreamliners. The new fuel-efficient jet debuted in December, roughly two years behind schedule, but has made a splash in the industry since then. Excitement around Boeing stock was kept alive by the latest earnings report, which came in better than expected on account of layoffs and continued strength from its defense business.
Boeing has grown sales at a 5.84% rate for the last five years, and has raised the dividend at of rate of 14.6 over the same time frame.
Bank of America (NYSE:BAC) is the Dow's next best performer for 2010, coming in with a gain of just under 12% YTD. While this result takes a distant back seat to Boeing's gain, for the year that's passed, BAC's gain dwarfs its co-component handily. Bank of America shares have returned more than 430% in the last twelve months as capital and credit markets returned to normal and the global economy began expanding.
Court Exonerates Bank/Broker Merger
A recent court decision that approved the bank's accord with the SEC over irregularities in with its merger with Merrill Lynch gave investors another reason to buy. Since the court's probe began on February 11, BAC stock has risen 15%.
Bank of America has outperformed the broad financial sector as represented by SPDR KBW Bank ETF (NYSE:KBE), which returned 160% for the year. Latest quarter earnings results came in significantly below expectations.
The Wrap
Earnings results certainly help push stocks higher, but they're not the last word in stock appreciation, as this Dow duo proves. (To learn more, see Why The Dow Matters.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: Learn To Invest In 10 Steps
The Boeing Company (NYSE:BA) is this year's best Dow performer by a long shot. Boeing's shares are up by an outsized 25% since the New Year and currently yield an annual 2.5%. And Boeing's recent performance is no flash in the pan. For the last twelve months the company has seen gains of 125%.
Compare this to the Dow Jones Industrials as represented by the SPDR Dow Jones Industrial ETF, a.k.a. the "DIAmonds" (NYSE:DIA) which returned a minute 1.5% YTD and less than 60% for the past year.
Dream Product, Dream Profits.
Boeing recently penned a deal with United Airlines (Nasdaq:UAUA) for 25 of its 787 Dreamliners. The new fuel-efficient jet debuted in December, roughly two years behind schedule, but has made a splash in the industry since then. Excitement around Boeing stock was kept alive by the latest earnings report, which came in better than expected on account of layoffs and continued strength from its defense business.
Bank of America (NYSE:BAC) is the Dow's next best performer for 2010, coming in with a gain of just under 12% YTD. While this result takes a distant back seat to Boeing's gain, for the year that's passed, BAC's gain dwarfs its co-component handily. Bank of America shares have returned more than 430% in the last twelve months as capital and credit markets returned to normal and the global economy began expanding.
Court Exonerates Bank/Broker Merger
A recent court decision that approved the bank's accord with the SEC over irregularities in with its merger with Merrill Lynch gave investors another reason to buy. Since the court's probe began on February 11, BAC stock has risen 15%.
Bank of America has outperformed the broad financial sector as represented by SPDR KBW Bank ETF (NYSE:KBE), which returned 160% for the year. Latest quarter earnings results came in significantly below expectations.
The Wrap
Earnings results certainly help push stocks higher, but they're not the last word in stock appreciation, as this Dow duo proves. (To learn more, see Why The Dow Matters.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
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