Dow Jones Review: JPMorgan

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out JPMorgan Chase. This company is up around 5% in 2012 compared with a similar gain for the Dow average as a whole.

John and David gave JPMorgan an outperform earlier in 2012, thinking it would beat the market over the next five years. So far, it's flat against the market. Things were going along nicely until a trader racked up some massive losses and the stock price fell. Interestingly, that incident ripped through the market, causing bank stock prices to fall. You can see it in the charts of Bank of America, Citigroup, and Goldman Sachs. Although those risks aren't going to go away, David still thinks JPMorgan will outperform the market over the long term. It's very well run and will make adjustments going forward. And its 3.3% dividend yield is pretty attractive today.

JPMorgan might be a volatile stock in the near term. If you're interested in learning more about some relatively stable, high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. Motley Fool newsletter services recommend Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 09, 2012, at 10:27 PM, nickjob wrote:

    Do not invest in JPM until Jamie Dimon gives back stolen MF Global customer money.

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