Thursday, October 31, 2013

The Five Worst Performing Stocks on the Dow

The Dow Jones Industrial Average is up more than 19% so far this on the year. The DJIA, an index of 30 stocks from some of the country's largest companies, is a widely followed indicator of the stock market's performance.

The Dow's growth in recent months has largely been a result of the country's improving economy. Unemployment continues to fall, the housing market is recovering and the country's largest companies, including Nike, Boeing and American Express, have benefited from recovering consumer confidence. As a further boon to the market, interest rates remain low and quantitative easing has, according to many market followers, driven investors' appetites for stocks.

Click here to see The Five Worst Performing Stocks on the Dow

However, several DJIA stocks simply are not living up to the performance of the broader stock market. 24/7 Wall St. reviewed year-to-date share price changes and dividend yields for all 30 Dow Jones stocks. We identified the five companies that have posted the worst total returns, after accounting for dividends paid, for the year.

Top Dividend Stocks To Watch Right Now

Each of these five companies has failed to deliver strong returns for different reasons. Some of the companies have been hampered by their international operations. IBM, which is down nearly 6% for on the year, has seen slowing demand for its hardware, especially from China. Mining business at Caterpillar, shares of which are down more than 6%, has suffered from the end of the global commodities boom.

However, some companies also face challenges domestically. Coca-Cola has had to contend with a decline in soda drinking by Americans. Exxon Mobil's refining profits have slipped as the difference in price between domestic and foreign oil has narrowed.

To identify the worst-performing stocks in the Dow Jones Industrial Average, 24/7 Wall St. reviewed total return figures, which include price changes and dividends paid, for each of the 30 component stocks. The DJIA is a price-weighted index, meaning the relative prices of each component affect their weighting in the index. Total return figures for individual companies are are from FINVIZ.

These are the five worst performing stocks on the Dow.

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