In 2024, These Stocks Delivered the Poorest Performance in the Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) is a collection of 30 prominent U.S. businesses, frequently seen as a representation of the broader market. Their performance often mirrors the state of the economy and the markets. In 2024, the DJIA saw a modest 14% increase, falling short of the more diverse and successful S&P 500, which surged by 25%.
2024's Challenges
The five companies that brought down the overall DJIA performance were, in descending order of underperformance, Johnson & Johnson (-0.12%), Merck (-1.12%), Amgen (-0.89%), Nike (-0.97%), and Boeing (-1.37%).
These companies' slumps didn't seem to stem from a single, all-encompassing issue like high interest rates or major economic instability. Boeing, for instance, battled the effects of the pandemic, including low demand and inflation, as well as safety concerns that culminated in a new CEO taking the helm in 2025.
Nike, on the other hand, saw rivals seize market shares and witnessed declining sales – factors that may be bringing about changes in leadership as well. The healthcare sector, with companies like Amgen, Merck, and Johnson & Johnson, frequently witnesses shifts based on drug performance and new product releases.
Despite their challenges, every company in the list, except for Boeing, provides dividends for shareholders. Johnson & Johnson, in particular, is known as a "dividend king" – a term used for companies with nearly 50 consecutive years of increasing dividends.
Through times of underperformance, these prominent figures can enhance your portfolio by providing reliable dividend income. However, if you're confident in a potential rebound, these stocks could be worth scooping up at discounted prices.
In the context of investing, carefully considering companies like Johnson & Johnson, known as a "dividend king," and others on the DJIA's underperforming list, can provide a stable source of dividend income during challenging times. For those believers in a potential rebound, these discounted stocks could represent attractive investment opportunities. Additionally, the overall underperformance of these companies in 2024, including Boeing facing challenges from the pandemic, low demand, inflation, and safety concerns, highlights the importance of diversifying one's portfolio in the world of finance and money.
