Dow 30 Stocks List: Ranked By 2022 Hedge Fund Bullishness Index
In this article, we discuss the Dow 30 stocks and their rank according to the 2022 hedge fund bullishness index.
The Dow Jones Industrial Average, sometimes known as Dow Jones or just the Dow, is an indicator of 30 renowned American firms that are traded on NYSE and NASDAQ. One of the first and most widely used equity indices is the DJIA. The index is a price-weighted measure of 30 U.S. blue-chip companies. It covers all industries except transportation and utilities. According to the S&P 500 index, the long-term average return on the stock market is slightly over 10%. The S&P 500's annualized performance for the previous ten years, ending on March 31, 2022, stood at 14.5%. The price-weighted Dow Jones Industrial Average, however, has fallen by more than 9% in the year so far.
Our Methodology
30 stocks included in the Dow Jones Industrial Average are listed in ascending order of the number of hedge funds having stakes in each stock as of the end of the third quarter.
Insider Monkey tracks and maintains a database of 900+ elite hedge funds and analyzes their holdings to let readers know what the professional hedge fund industry feels about a particular stock.
Dow 30 Stocks List: Ranked By 2022 Hedge Fund Bullishness Index
30. Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders as of Q3, 2022: 37
The Travelers Companies, Inc. (NYSE:TRV) is a New York-based insurance company and has operations in seven countries including the United States. On November 1, MKM Partners analyst Harry Fong reiterated a Buy rating on The Travelers Companies, Inc. (NYSE:TRV) with a $220 price target, up from $185. The analyst noted that the company’s catastrophic losses of $512 million were just ahead of its estimates and also near what he expected without a significant event.
Earnings have been strong for Travelers Companies, Inc. (NYSE:TRV) as it reported Q3 core EPS of $2.20 on sales of $9.3 billion versus the consensus of $1.60 on sales of $8.98 billion. Adjusted book value rose 7% year over year to $111.90 per share, and the company’s net written premiums rose 10% year over year to $9.198 billion.
Our database reveals that in the third quarter, 37 hedge funds had a stake worth $508.67 million in The Travelers Companies, Inc. (NYSE:TRV). In the prior quarter, the total number of hedge funds holding positions in the company was 31, valued at $433.82 million. The most significant shareholder was First Eagle Investment Management with over 2.7 million of The Travelers Companies, Inc. (NYSE:TRV)’s shares, worth $420.037 million.
29. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders as of Q3, 2022: 39
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was founded in 1901 and is based in Deerfield, Illinois. The company operates as an integrated healthcare, pharmacy, and retailer in the United States, the United Kingdom, Germany, and internationally. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has three segments – U.S. Retail Pharmacy, International, and U.S. Healthcare. The company paid a $0.48 per share quarterly dividend to shareholders on December 12 and has 46 years of consecutive annual dividend increases under its belt.
On December 14, Mizuho analyst Ann Hynes raised the price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $41 from $36 and kept a Neutral rating on the shares. The analyst believes managed care and drug distributors’ earnings visibility remains attractive, but she thinks hospitals have the most improved outlook.
According to Insider Monkey’s data, 39 hedge funds were bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of September 2022, compared to 40 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with approximately 6 million shares worth $186.5 million.
28. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders as of Q3, 2022: 40
International Business Machines Corporation (NYSE:IBM) is an American technology company that specializes in a wide range of tech-related services. The company’s cash position remained stable this year. It reported an operating cash flow of $6.5 billion in the first nine months of the year and its free cash flow came in at $4.1 billion. The company is one of the best dividend stocks as it returned $1.5 billion to shareholders in dividends during Q3 2022. International Business Machines Corporation (NYSE:IBM) has been making regular dividend payments to shareholders since 1916. The company also maintains a 27-year streak of consistent dividend growth. It currently pays a quarterly dividend of $1.65 per share for a dividend yield of 4.75%, as of December 20.
On October 18, BofA analyst Wamsi Mohan maintained a Buy rating on International Business Machines Corporation (NYSE:IBM) stock and lowered the price target to $145 from $155, noting that it has been estimated that about 80% of the software portfolio is non-transactional contracts linked to mission-critical projects.
As of the close of Q3 2022, 40 hedge funds in Insider Monkey’s database owned stakes in International Business Machines Corporation (NYSE:IBM), the same as in the previous quarter. The collective value of these stakes is over $868.7 million. With over 4.3 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.
27. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders as of Q3, 2022: 42
The Boeing Company (NYSE:BA) was incorporated in 1916 and is based in Chicago, Illinois. The company designs, develops, manufactures, sells, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and related services worldwide. The company operates through four segments – Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital. On December 16, The Boeing Company (NYSE:BA) received the biggest order for commercial aircraft in history as United Airlines Holdings, Inc. (NASDAQ:UAL) agreed to buy 100 twin-aisle 787 Dreamliners, with an option to buy 100 more. The carrier also will buy 100 of Boeing’s 737 MAX single-aisle jets.
According to Insider Monkey’s data, 42 hedge funds were bullish on The Boeing Company (NYSE:BA) at the end of Q3 2022, compared to 51 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 1.5 million shares worth $178.5 million.
Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:
“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”
26. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders as of Q3, 2022: 43
Caterpillar Inc. (NYSE:CAT) is a Texas-based construction and machinery equipment company. In December, Stifel raised its price target on the stock to $271 with a Buy rating on the shares. The firm expects the price/cost environment to improve generally.
In the third quarter of 2022, Caterpillar Inc. (NYSE:CAT) reported revenue of $15 billion, up 21% from the same period last year. The company is one of the best dividend stocks on our list as it returned $2 billion to shareholders in dividends and share repurchases. On December 15, Caterpillar Inc. (NYSE:CAT) declared a quarterly dividend of $1.20 per share, which fell in line with its previous dividend. The company has been raising its dividends consistently for the past 28 years. The stock’s dividend yield on December 23 came in at 1.99%.
At the end of the third quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Caterpillar Inc. (NYSE:CAT), compared to 45 in the previous quarter worth $3.2 billion.
25. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders as of Q3, 2022: 43
Dow Inc. (NYSE:DOW) is an American multinational chemical company that provides innovative and sustainable solutions in packaging and consumer care. In the third quarter of 2022, the company posted revenue of $14.1 billion, which beat Street estimates by $1.09 billion. Its operating cash flow for the quarter came in at $1.9 billion and its free cash flow stood at $1.5 billion. Moreover, the company paid $493 million to shareholders in dividends, which shows that its cash flow generation is stable.
On October 13, Dow Inc. (NYSE:DOW) declared a quarterly dividend of $0.70 per share, which fell in line with its previous dividend. The company is one of the best dividend stocks on our list, as it has been making uninterrupted dividend payments since 1912. As of December 23, the stock has a dividend yield of 5.40%.
In October, Fermium Research maintained a Buy rating on Dow Inc. (NYSE:DOW), following the company’s strong performance in the recent quarterly earnings. In addition to this, the firm also appreciated the stock’s dividend yield.
At the end of September, 43 hedge funds tracked by Insider Monkey had investments in Dow Inc. (NYSE:DOW), valued at nearly $710 million. With over 7.5 million shares, Pzena Investment Management was the company’s leading stakeholder in Q3.
24. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders as of Q3, 2022: 49
3M Company (NYSE:MMM) is an American multinational conglomerate that operates in the fields of industry, healthcare, and consumer goods. In December, Citigroup lifted its price target on the stock to $126 with a Neutral rating on the shares. The firm mentioned that the supply chain situation would improve the industry’s profitability heading into next year.
In the third quarter of 2022, 3M Company (NYSE:MMM) reported an operating cash flow of $1.5 billion, and its free cash flow for the quarter came in at $1.4 billion. Its cash generation was stable as it returned $1 billion to shareholders in dividends and share repurchases during the quarter. The company’s consistent dividend growth and strong cash position make it one of the best dividend stocks on our list. 3M Company (NYSE:MMM) currently offers a per-share dividend of $1.64 every quarter. The company holds a 64-year track record of consistent dividend growth, which makes it one of the best dividend stocks on our list. As of December 23, the stock has a dividend yield of 4.88%.
At the end of Q3 2022, 49 hedge funds tracked by Insider Monkey reported owning stakes in 3M Company (NYSE:MMM), down from 54 in the previous quarter. The consolidated value of these stakes is over $1.45 billion.
23. Amgen, Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders as of Q3, 2022: 53
Amgen Inc. (NASDAQ:AMGN) is a California-based multinational biopharmaceutical company that manufactures medicines for patients with serious illnesses. In December, Piper Sandler raised its price target on the stock to $299 with an Overweight rating on the shares, after the company reached a deal to buy Horizon Therapeutics.
In Q3 2022, Amgen Inc. (NASDAQ:AMGN) posted revenue of $6.6 billion, which fell by 0.9% from the same period last year. However, the company’s revenue beat analysts’ consensus by $90 million. Its cash flow generation also remained strong during the quarter, with $2.8 billion in free cash flow, compared with $2.2 billion during the prior-year quarter.
On December 13, Amgen Inc. (NASDAQ:AMGN) declared a 10% hike in its quarterly dividend to $2.13 per share. The company is one of the best dividend stocks on our list as it has raised its payouts every year since 2011. As of December 14, the stock has a dividend yield of 3.15%. In addition to Caterpillar Inc. (NYSE:CAT), Exxon Mobil Corporation (NYSE:XOM), and AbbVie Inc. (NYSE:ABBV), investors are also paying attention to AMGN due to its dividend growth track record.
At the end of Q3 2022, 53 hedge funds in Insider Monkey’s database owned stakes in Amgen Inc. (NASDAQ:AMGN), compared with 55 in the previous quarter. These stakes are worth over $1.55 billion collectively.
22. Honeywell International Inc. (NYSE:HON)
Number of Hedge Fund Holders as of Q3, 2022: 53
Honeywell International Inc. (NASDAQ:HON) operates as a diversified technology and manufacturing company worldwide.
On December 1, Honeywell International Inc. (NASDAQ:HON) announced that it is expanding its partnership with Nexceris, a manufacturer of Li-ion Tamer lithium-ion gas detection solutions, to improve safety of electric vehicle batteries. The companies will collaborate with top global auto manufacturers to provide superior gas detection solutions in EV battery packs which would allow for early intervention and make electric vehicles safer.
Citi analyst Andrew Kaplowitz on December 9 raised the price target on Honeywell International Inc. (NASDAQ:HON) to $248 from $213 and reiterated a Buy rating on the shares. The analyst noted that megatrends and “still emerging fiscal tailwinds” should help moderate potential downside for industrials in a weak macroeconomic backdrop.
According to Insider Monkey’s data, Honeywell International Inc. (NASDAQ:HON) was part of 53 hedge fund portfolios at the end of September 2022, compared to 42 in the prior quarter. Ric Dillon’s Diamond Hill Capital is a prominent stakeholder of the company, with 1.14 million shares worth $190.2 million.
21. McDonald's Corporation (NYSE:MCD)
Number of Hedge Fund Holders as of Q3, 2022: 53
McDonald’s Corporation (NYSE:MCD) has been a dependable dividend payer over the years, given the company has increased its annual dividend for 45 consecutive years. As a result of the increases, the fast food chain has a dividend yield of around 2.29% as of December 23. Considering demand doesn’t fall very much during tough times, McDonald’s Corporation (NYSE:MCD) usually makes more than enough profits to cover its dividend during recessions. In terms of profits, analysts expect McDonald’s Corporation (NYSE:MCD) to earn $9.95 per share in 2022, $10.49 per share in 2023, and $11.42 per share in 2024.
On October 28, RBC Capital analyst Christopher Carril maintained an Outperform rating on McDonald’s Corporation (NYSE: MCD) stock and raised the price target to $295 from $275, noting that the company’s third-quarter earnings beat highlighted its ability to play both offense and defense amid macro uncertainty.
At the end of the third quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $1.83 billion in McDonald’s Corporation (NYSE:MCD), compared to 50 in the previous quarter worth $2.3 billion.
20. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders as of Q3, 2022: 59
An American multinational beverage company, The Coca-Cola Company (NYSE:KO) reported a 4% growth in its global unit case volume in the third quarter of 2022. Year-to-date, the company’s cash flow came in at $8.1 billion and its free cash flow amounted to $7.3 billion. Its revenue for Q3 also showed an 11% growth from the same period last year.
Atlantic Equities raised its price target on The Coca-Cola Company (NYSE:KO) to $69 in December with an Overweight rating on the shares, highlighting the company’s strong execution and elevated growth. The Coca-Cola Company (NYSE:KO) currently pays a quarterly dividend of $0.44 per share. The company holds one of the longest dividend growth streaks of 60 years, which places it as one of the best dividend stocks on our list. The stock has a dividend yield of 2.76%, as of December 21.
As of the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned stakes in The Coca-Cola Company (NYSE:KO), with a collective value of $25 billion. Berkshire Hathaway was the company’s largest stakeholder with 400 million shares.
Carillon Tower Advisers mentioned The Coca-Cola Company (NYSE:KO) in its Q3 2022 investor letter. Here is what the firm has to say:
“Shares of The Coca-Cola Company (NYSE:KO) sold off with consumer staples even as the company reported strong pricing for the second quarter. On average, product prices rose with management hinting at further momentum.”
19. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders as of Q3, 2022: 62
Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company. Verizon Communications Inc. (NYSE:VZ) holds the longest dividend growth track record in the US telecom industry. The company has raised its dividends for the past 16 years in a row, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.6525 per share and has a dividend yield of 6.91%, as of December 14.
Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.
Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:
“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”
18. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders as of Q3, 2022: 66
Chevron Corporation (NYSE:CVX) is an American multinational energy company. The company remained committed to its shareholder return in Q3 2022, distributing $2.7 billion in dividends. Its dividend payments showed a 6% growth from the same period last year.
Chevron Corporation (NYSE:CVX) currently pays a quarterly dividend of $1.42 per share for a dividend yield of 3.26%, as of December 14. The company is one of the best dividend stocks on our list as it maintains a 25-year streak of dividend growth. Chevron Corporation (NYSE:CVX) is the best-performing Dow Jones Industrial Average stock in 2022, given its year to date surge of 45.51%. Chevron Corporation (NYSE:CVX) has outperformed the market, given higher oil and gas prices due to the Russian-Ukraine war. If there is a recession next year, however, oil demand might not be as strong as expected. If oil and gas prices go lower, Chevron Corporation (NYSE:CVX) stock might be riskier than some other stocks on this list.
The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion. Berkshire Hathaway was the company’s leading stakeholder in Q3.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
17. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders as of Q3, 2022: 68
American Express Company (NYSE:AXP) is an American multinational firm that specializes in payment card services. On November 29, Redburn analyst Fahed Kunwar initiated coverage of American Express Company (NYSE:AXP) with a Neutral rating. The brand power of debit is declining as digital wallets become popular, contended the analyst, who believes the market underestimates the cyclical and structural concerns pressuring card network stocks.
According to Insider Monkey’s Q3 data, 68 hedge funds were bullish on American Express Company (NYSE:AXP), compared to 67 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 151.6 million shares worth $20.45 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks, and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:
“In financials, American Express Company (NYSE:AXP) has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
16. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders as of Q3, 2022: 68
Cisco Systems, Inc. (NASDAQ:CSCO) designs, manufactures and sells Internet Protocol-based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.
On November 18, Deutsche Bank analyst Matthew Niknam maintained a Hold rating on Cisco Systems, Inc. (NASDAQ:CSCO) stock and lowered the price target to $52 from $54, noting that the upside from the fiscal first quarter beat is tempered by a more cautious view on a tougher macro backdrop in upcoming periods. At the close of Q3 2022, 68 hedge funds were long Cisco Systems, Inc. (NASDAQ:CSCO) and disclosed stakes of $2.78 billion in the company. This is compared to 63 hedge funds in the preceding quarter with stakes worth $1.91 billion. The hedge fund sentiment for the stock is positive. As of September 30, Two Sigma Advisors is the most prominent shareholder in the company and has stakes worth $388 million. In its Q1 2022 investor letter, Carillon Towers Advisers, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. (NASDAQ:CSCO) was one of them. Here is what the fund said:
“Cisco Systems (NASDAQ:CSCO) traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”
Click to continue reading and see Dow 30 Stocks List: 15 Stocks Ranked By 2022 Hedge Fund Bullishness Index.
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Disclosure. None. Dow 30 Stocks List: Ranked By 2022 Hedge Fund Bullishness Index is originally published on Insider Monkey.
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