These Dow Jones Stocks Have Quietly Climbed to New Highs

Several little-watched members of the Dow Jones Industrials have performed well lately. Find out more about them.

Jun 10, 2014 at 4:30PM

The Dow Jones Industrials (DJINDICES:^DJI) kept its record-setting streak alive on Tuesday, gaining three points and just barely setting yet another all-time high. The index has put together an impressive long-term performance, yet some of the stocks that have helped lift the Dow to unprecedented heights aren't necessarily the first ones you'd think of. Let's look at how 3M (NYSE:MMM) and Travelers (NYSE:TRV) have quietly climbed to record levels of their own.


Source: 3M.

3M stock fell back a bit today, closing just below its all-time record close on Monday. Yet what has investors excited about 3M is the conglomerate's work to reinvigorate its renowned innovative spirit, exploring new avenues in its diverse businesses to come up with groundbreaking products. This week, 3M had to deal with the departure of its CFO to join a biotech company. But the depth of 3M's talent bench meant it already had a solid replacement with more than a quarter-century of experience at the company.

Meanwhile, from a longer-term perspective, 3M has enjoyed strong business results. The Dow component saw positive organic sales growth in its first quarter across the board, with the most strength in its health-care and industrial segments. 3M has had success around the world as well, with balanced growth contributing to investor security. Overall, 3M has been performing well internally, and its share price reflects that enthusiasm.

Source: Travelers.

Meanwhile, Travelers reached new heights today. The insurer also had to deal with some personnel changes recently, with the exit of its executive vice president for the business insurance division. That necessitated a minor reshuffling of roles within the company, dividing the former executive's roles across two different job descriptions.

Travelers owes most of its success to a lack of major catastrophic events recently. As hurricane season has just begun, that favorable record could change on a dime if a storm hits the U.S. mainland this year. Investors have started reining in their expectations for the insurance giant's earnings, resigning themselves to the idea that Travelers likely won't duplicate its stellar earnings performance from 2013. Still, as long as conditions remain relatively favorable for the blue-chip company, Travelers could continue to see share price gains this year and beyond.

As the Dow advances, be sure to watch out for its unsung winners. Often companies such as 3M and Travelers get the least attention but deserve the most credit.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends 3M. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information