The 2011 calendar year has nearly ended, and the Dow Jones Industrial (.DJI) appears poised for a positive Year To Date gain. Although financial stocks weighed down the Dow 30 this year, there were several winners that posted impressive annual returns and boosted the value of investors’ portfolios significantly.
Following is a list of the Best Performing Dow Stocks of 2011.
McDonald’s Corporation
The top performing Dow Jones component stock so far in 2011 has been hands-down McDonald’s Corporation (NYSE:MCD). The fast food restaurant business, which boasts franchises worldwide, has provided shareholders with a 30 percent annual YTD return. Since beginning the year priced at $76.76 per share, McDonald’s has steadily risen and even increased its dividend from $0.61 to $0.70 – resulting in a yield of 2.8 percent. The firm’s 3Q FY 2011 Earnings Report showed a 9 percent earnings increase from $1.39B in 2010 to $1.51 billion in the period ending September 30th, 2011.
On December 8th, McDonald’s published its November global figures which showed a 7.4% Comparable Sales increase from October – with Asia/Pacific, Middle East and Africa restaurants posting the largest regional monthly gain of 8.1 percent. In the report, Chief Executive Officer Jim Skinner stated, “We’re listening to our customers and delivering what they expect from McDonald’s by optimizing our menu, modernizing the customer experience and broadening accessibility to our Brand. McDonald’s steadfast focus on our customers and our operations under the Plan to Win is driving the sustained momentum of our global business.”
McDonald’s has a current Market Capitalization of $102.48 billion with a Price to Earnings ratio of 19.63 and an Earnings Per Share of $5.10. The stock is currently priced at $100.15 as of Monday, December 26th. Below is McDonald’s stock chart for the 2011 calendar year.

International Business Machines Corp.
The second-best performing Dow 30 component stock in 2011 is International Business Machines Corporation (NYSE:IBM). IBM has posted a Year To Date gain of 25.89% as of Monday, December 26th. In October, the stock experienced a modest slide after barely missing analysts’ expectations for sales in its 3Q FY 2011 Earnings Report. Despite the miss, IBM’s sales jumped 7 percent in the third quarter, resulting in a profit of $3.8 billion.
IBM Chairman, President and CEO Samuel J. Palmisano told shareholders in the quarterly earnings call, “We drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives. Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company’s expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.”
Palmisano went on to add that based on IBM’s 3Q performance, the company would raise its 2011 full year operating EPS expectations to at least $13.35.
IBM’s Market Capitalization is $217.75B with an Earnings Per Share of $12.64 and a P/E ratio of 14.62. The stock’s price began the calendar year at $146.76 per share but has since gained nearly 29 percent to $184.75 as of Monday, December 26th. Below is IBM’s stock chart for the 2011 calendar year.

Pfizer Inc.
The third-best performing Dow component stock in 2011 is Pfizer, Inc. (NYSE:PFE). The world’s largest drug maker has given shareholders a 24.67% YTD return and is currently priced at $21.83 per share after starting the year at $17.51.
In November, Pfizer posted quarterly results that exceeded analysts’ expectations. Boosted by its consumer health products business and prescription drugs growth in emerging markets, the company earned over $3.7 billion in the third quarter, including an after-tax profit of $1.3 billion for its sale of Capsugel.
Pfizer’s Market Capitalization is $167.81B with an EPS of $1.27 and a Price to Earnings ratio of 17.18. Below is Pfizer’s stock chart for the 2011 calendar year.

The Home Depot, Inc.
The fourth-best performing Dow Jones component stock in 2011 is The Home Depot, Inc. (NYSE:HD). The nation’s largest home improvement retail distribution chain has impressed analysts in its recent financial reports, including its 3Q FY 2011 Earnings Report in which it posted a net income of $934 million along with a 4.4% rise in sales to $17.33 billion.
Chairman and Chief Executive Officer Frank Blake spoke during the most recent earnings call, telling shareholders “Our third quarter was driven by strength in our core categories and storm-related sales as well as strong operating performance. We will continue to invest in our core initiatives to provide customers with exceptional customer service and great product values. I would like to thank our associates for their hard work and dedication.” The company also raised its dividend from $0.25 to $0.29 in November, resulting in a yield of 2.76 percent.
The Home Depot currently has a Market Capitalization of $64.88B with an Earnings Per Share of $2.33 and a P/E ratio of 18.04. The stock opened 2011 at $35.06 per share but is currently priced at $42.09 as of Monday, December 26th. Below is Home Depot’s stock chart for the 2011 calendar year.

IRA Investing in Dow Jones Component Stocks
If you’re considering the option to Open an IRA in January, the best performing Dow stocks of 2011 may be an excellent addition to your portfolio. If you require assistance or would like to consult an expert before opening an account, you can Find an Advisor through IRA.com and begin saving money for retirement in a matter of minutes.
We also have a multitude of articles available here on the site to help individuals with learning IRA Basics, IRA Rules, and much more.












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