3 Dow Stocks to Buy for the Next Bull Run: March 2024

Stocks to buy

The Dow Jones has gone through some shakeups that are positioning it for a good bull run. Walgreens (NYSE:WBA) got booted from the index while the more favorable Amazon (NASDAQ:AMZN) took its place. This has led to this list of Dow stocks to buy.

You don’t have as many companies to choose from in the Dow Jones. The index only has 30 stocks with almost all of them being household names. These are some of the Dow stocks to accumulate before the next bull run.

Amazon (AMZN)

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Amazon’s inclusion in the Dow was a great choice that should reward investors who hold onto the index. The company’s online marketplace continues to grow domestically and internationally. The company’s Q4 2023 press release revealed the company’s domestic sales increased by 13% year-over-year while international sales were up by 17% year-over-year. 

The company grew revenue by 14% year-over-year as a whole. The online marketplace isn’t Amazon’s only revenue driver. Amazon Web Services has been another boon for the tech giant. The firm has exposure to additional industries like groceries and gaming.

Advertising and streaming are two of the company’s more exciting opportunities that can lead to long-term growth. Amazon has been running ads on its streaming platform, online marketplace, Twitch, and other places. 

The company is also investing a considerable amount of capital into its streaming platform. A recently announced $100 million partnership with MrBeast can bring more attention to the company’s streaming content. Amazon seems to be pulling the right levers for its growth initiatives, and it looks like it can outperform the market in the long run. No wonder it was added to the Dow!

American Express (AXP)

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American Express (NYSE:AXP) is one of the best dividend growth stocks due to its financial stability, low valuation, and rising profit margins. The credit and debit card giant has a 20 P/E ratio and a 1.25% dividend yield. The company regularly raises its dividend by at least 10% per year and announced a 17% dividend increase this year.

Dividend hikes of this magnitude are a good sign for a company’s long-term prospects. These high dividend bumps indicate the company can comfortably afford to pay its investors while growing the business. It’s more concerning if a company raises its dividend by less than 5% per year or doesn’t raise it at all. All in all, it’s one of those Dow stocks to buy.

The fintech firm did a good job in its recent earnings report. The highlights include 11% year-over-year revenue growth and 23% year-over-year net income growth. The stock isn’t as vulnerable to downturns since consumers will still use credit cards even if they have to spend less money and keep tighter budgets. The stock only went down by roughly 10% in a year that saw many growth stocks shed 50% of their value.

Walmart (WMT)

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Walmart (NYSE:WMT) is America’s largest retailer and offers a haven for people who want to buy more affordable goods. Record high inflation brought more people into Walmart’s stores as consumers looked for ways to minimize their costs.

Higher inflation in 2022 attracted people to Walmart stores who normally don’t visit the retailer’s locations. Wealthier households also did their shopping at Walmart just to save some money. The company is using this trend to its advantage by including high-end products in its stores

It’s the company’s latest bid to attract wealthy shoppers to its stores. Walmart will still be the premier destination for people who want to see it, but the allocation of a portion of its stores to richer consumers can increase the company’s customer pool. Walmart is testing this out with more than 800 locations. If the cost of living remains elevated, the corporation’s plan may work this time.

Investors should also be excited about the company’s e-commerce and advertising segments. Walmart has been making investments in those areas including the recent acquisition of Vizio to accelerate growth rates. It’s one of those Dow stocks to buy.

On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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