These Were the 5 Worst-Performing Stocks in the Dow Jones Industrial Average in 2024

Source The Motley Fool

The Dow Jones Industrial Average (DJIA) is a group of 30 U.S. industry leaders. It's often looked at as a proxy for the market, since its components' performance is indicative of what's happening in the economy and the markets. The DJIA itself gained 14% in 2024, far underperforming the larger and more diverse S&P 500, which gained 25%.

The 2024 losers

The five stocks at the bottom of the barrel, which pulled down the winners, were in fact, losers. Not only were they the tail of a year with growth, but they all lost value over the year. In order of best to worst, the list includes Johnson & Johnson (NYSE: JNJ), Merck (NYSE: MRK), Amgen (NASDAQ: AMGN), Nike (NYSE: NKE), and Boeing (NYSE: BA).

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NKE Chart

NKE data by YCharts

I don't think you can blame these companies' woes on a specific, overarching factor like high interest rates or macroeconomic volatility. Boeing has had many problems, starting with the more general pandemic-related issues like low demand and inflation, and there were major safety concerns last year. It culminated in a new CEO, and investors are waiting to see what's in store this year.

Nike has let competitors cut into its market share and has seen its sales decline. It also just got a new CEO, and the market is waiting for another update. Amgen, Merck, and Johnson & Johnson are all healthcare stocks and often move based on news about drug performance and new products.

The bright side of the equation for all of these companies is that excepting Boeing, they all pay dividends, and Johnson & Johnson is a dividend king. Dividend stocks aren't growth stocks, and investors buy them for reliable passive income. At the current prices, the dividend yields are quite high.

As industry leaders, they can add value to your portfolio through passive income, and if you have confidence in a rebound, you can scoop them up at a great price.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck and Nike. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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