3 Dependable Dow Stocks to Buy in December it's important to note that not all stocks in the Dow Jones Industrial Average are worthy of your hard-earned capital at this time. That's why we've put together a list...
By Sean Sechler
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This story originally appeared on MarketBeat
Dow Jones Stocks Can Offer Dependable Long-Term Returns
Adding components of the Dow Jones Industrial Average to your investing strategy certainly comes with its fair share of positives. Since the companies that make up this widely-recognized stock market index are some of the world's best businesses, investors know they are getting quality by focusing on the Dow. These are blue-chip stocks that can be great core holdings and deliver consistent long-term gains thanks to their market leadership status.
Dependability is a quality that can be difficult to come by in the stock market, which is why so many of the stocks in the Dow are long-term winners. However, it's important to note that not all stocks in the Dow Jones Industrial Average are worthy of your hard-earned capital at this time. That's why we've put together a list of 3 dependable Dow stocks to buy in December so that you can only focus on the best. Let's take a deeper look below.
Coca-Cola (NYSE: KO)
There aren't many areas of the market that are more dependable than the consumer staples sector, and Coca-Cola is the perfect example. The company is a dividend king, meaning that Coca-Cola has increased its dividend payment for more than 50 consecutive years. That's the type of consistency that speaks volumes about the company's business model. Since Coca-Cola is the world's largest producer of soft drink concentrates and syrups, along with the largest producer of juice and juice-related products, the company consistently generates billions in revenue each quarter due to steady demand for its refreshing beverages.
There's also something to be said for owning a company that has developed one of the strongest brand names in the world. A lot of this has to do with the company's strength in marketing its products and large advertising budget, both of which will keep Coca-Cola at the top of its industry for years to come. The company recently reported Q3 adjusted EPS of $0.65, up 18% year-over-year, and raised its 2021 guidance, which means that investors should expect a strong finish to the fiscal year. Finally, the fact that Coca-Cola's Q3 volumes surpassed levels from before the pandemic should reassure investors that business is getting back to normal for the company.
Visa (NYSE: V)
Companies in the payments space have really taken a beating over the last several weeks, which means now might be a good opportunity for investors to pick up shares of a quality name like Visa at a deep discount. The company operates the world's largest electronic payments network and connects consumers, merchants, financial institutions, businesses, government entities, and more to digital payment services. Visa is an attractive Dow stock for a variety of reasons, including the company's leading market share in an industry with plenty of growth potential. The company processed almost $9 trillion in purchase transactions during fiscal 2020, which is a staggering number that confirms just how important the company is in the scheme of the global economy.
Visa is also a nice recovery play, as the company should benefit from increased payment volumes as the world's economy recovers following the pandemic. The company reported GAAP EPS of $5.63 in FY21, up 15% year-over-year, and also recently increased its quarterly cash dividend by 17% to $0.375 per share. The bottom line here is that cross-border travel will be back to normal shortly, and the digital payments industry has plenty of room to grow, which means investors should view the recent weakness in Visa as a fantastic buy-the-dip opportunity.
Apple (NASDAQ: AAPL)
Although Apple shares have already rallied considerably over the last few weeks, there's no doubt that this is the stock that is leading the market higher at this time. It's the type of company that investors can depend on to consistently create innovative new products over the years, which is a great reason why it's a stock to consider adding for the long-term. You're probably already familiar with iconic tech devices like the iPhone, Mac, iPad, AirPods, and more, which have helped the company get close to achieving a staggering $3 trillion market capitalization. However, investors should be most excited about what could be coming down the pipeline from the tech juggernaut.
Apple is reportedly hard at work on an electric self-driving car along with an Augmented Reality / Virtual Reality headset. These could become groundbreaking products that further strengthen the company's market position, and it's clear that investors are interested in seeing how things play out. Strong demand for the iPhone 13 and growth in the company's services revenue should continue driving profitability for Apple in the near term as well, with the company's management expecting a new revenue record for the December quarter. Keep an eye on any dips or a period of consolidation in Apple shares if you are interested in adding shares this month.