3 Top Dow Jones Stocks to Safeguard Your Portfolio

The Dow Jones Industrial Average (DJIA) has been the least affected index among the major stock market indexes over the past five trading sessions. The index lost 2.2% versus the S&P 500’s 3.6% and Nasdaq’s 4.6% over this period.

Although labor shortages, inflationary pressure, and the looming interest rate hike may keep the stock market under pressure in the near term, experts expect the economy to expand. Therefore, most DJIA members could witness a decent rebound.

Given this backdrop, it could be wise to bet on fundamentally sound dividend-paying Dow Jones stocks Merck & Co., Inc. (MRK), Amgen Inc. (AMGN), and Walgreens Boots Alliance, Inc. (WBA) to dodge the ongoing market fluctuations.

Merck & Co., Inc. (MRK)

MRK is a global healthcare company that operates through Pharmaceutical and Animal Health segments. The company offers health solutions through prescription medicines, vaccines, biological therapies, and animal health products. MRK also has collaborations with bioscience companies to co-develop and commercialize investigational treatment combinations.

MRK has been scheduled to pay a $0.69 quarterly dividend on April 7, 2022. The stock distributes a $2.76 per share dividend annually, resulting in a 3.49% yield. The company's dividend has grown at an 8.2% rate over the past five years.

This month, MRK, the European Organization for Research and Treatment of Cancer (EORTC), and the European Thoracic Oncology Platform (ETOP) announced that the Phase 3 KEYNOTE-091 trial met one of its dual primary endpoints of disease-free survival (DFS) for the adjuvant treatment of patients with stage IB-IIIA non-small cell lung cancer (NSCLC). This study has proved MRK's extensive clinical development program in lung cancer.  

MRK's total sales increased 20.4% year-over-year to $13.15 billion for the third quarter ended September 30, 2021. The company's net income grew 27.3% from the year-ago value to $4.44 billion. Also, its EPS rose 27.7% from the prior-year quarter to $1.75.

Analysts expect MRK's revenue to increase 16.7% year-over-year to $56.52 billion for the fiscal year 2022. Also, its EPS is expected to grow 26.9% in fiscal 2021 and 26.3% next year. Its stock price has increased 7.1% over the past nine months.

MRK's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Also, the stock has an A grade for Growth and a B grade for Value and Quality. We've also graded MRK for Sentiment, Momentum, and Stability. Click here to access all of MRK's ratings. MRK is ranked #5 of 184 stocks in the Medical - Pharmaceuticals industry.

Amgen Inc. (AMGN)

AMGN is a biotechnology company that discovers, develops, manufactures, and delivers human therapeutics worldwide. The company primarily operates in inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. Some of AMGN's products are Neulasta, Aranesp, EPOGEN, XGEVA, and Prolia.

AMGN has been scheduled to pay a $1.94 quarterly dividend on March 8, 2022. The stock distributes a $7.76 per share dividend annually, resulting in a 3.49% yield. The company's dividend has grown at an 11.9% rate over the past five years.

This month, AMGN LUMAKRAS, a KRAS inhibitor by AMGN, was approved in Japan to treat KRAS G12C-mutated positive, advanced and recurrent non-small cell lung cancer (NSCLC) that has progressed after systemic anticancer therapy. This approval has illuminated AMGN's one of the toughest challenges taken by the company in the research and development of cancer treatment.

AMGN's total revenues increased 4.4% year-over-year to $6.71 billion for the third quarter ended September 30, 2021. The company's operating income grew 8.5% from the year-ago value to $3.45 billion. Its net income rose 8% from the prior-year quarter to $2.66 billion. Also, the company's EPS increased 11.5% year-over-year to $4.67.

AMGN's revenue for the fiscal year 2022 is expected to be $27.08 billion, representing a 4.1% year-over-year growth. The company has surpassed the consensus EPS in three of the trailing four quarters. Its EPS is expected to increase 6.3% in fiscal 2022. The stock has surged 6.6% over the past three months.

It's no surprise that AMGN has an overall B rating, which equates to a Buy in our POWR Rating system. Also, the stock has an A grade for Quality and a B grade for Stability and Value.

Click here to see the additional POWR Ratings for AMGN (Growth, Momentum, and Sentiment). AMGN is ranked #6 of 453 stocks in the Biotech industry.

Walgreens Boots Alliance, Inc. (WBA)

WBA is an integrated pharmacy, healthcare, and retailer that operates through two segments, the United States and International. The company's segments provide retail drugstores, care clinics, specialty pharmacy services, and optical practices. WBA's retail and business brands portfolio includes Walgreens, Duane Reade, Boots, and global health and beauty product brands.

WBA paid a $0.48 quarterly dividend on December 10, 2021. The stock distributes a $1.91 per share dividend annually, which translates to a 3.84% yield to the company's dividend has grown at a 5.2% rate over the past five years.

This month, WBA launched Walgreens COVID-19 Index, a new interactive tracking tool powered by testing data from Aegis Sciences Corporation to uniquely identify the spread of current and emerging variants in near real-time. This index should provide a leading consumer-centric healthcare solution to support and build a nationwide footprint and health offerings.

WBA's sales increased 7.8% year-over-year to $33.9 billion for the fiscal first quarter ended November 30, 2021. The company's gross profit grew 14.2% from the year-ago value to $7.57 billion. Its operating income came in at $1.28 billion, compared to an operating loss of $535 million in the prior-year quarter. Also, the company's net earnings amounted to $3.53 billion, compared to a net loss of $299 million in the year-ago quarter.

Analysts expect WBA's revenue for the fiscal year 2023 to be $136.4 billion, representing a 3.7% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to grow 2.2 in fiscal 2022. Its stock price has increased 5.3% over the past six months.

WBA's POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. Also, the stock has a B grade for Sentiment and Value.

In addition to the POWR Rating grades I've just highlighted, one can see WBA's ratings for Momentum, Quality, Stability, and Growth here. The stock is ranked #2 of 4 stocks in the A-rated Medical – Drug Stores industry.

MRK shares were trading at $80.80 per share on Thursday afternoon, up $1.66 (+2.10%). Year-to-date, MRK has gained 5.43%, versus a -9.31% rise in the benchmark S&P 500 index during the same period.

Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.

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