Top 3 Dow Jones constituents to buy in August

on Aug 25, 2022
  • The Dow Jones index has made a strong rebound.
  • The rally is in line with other global indices like Nasdaq and DAX.
  • Chevron, Microsoft, and Disney are good long-term buys.

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The Dow Jones index has made a spectacular recovery in the past few weeks as investors buy the dip. The index soared to a high of $34,270, which was the highest level since April 22. It has rallied by about 11% from the lowest level this year. Here are some of the best Dow Jones constituents to buy.


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Chevron (NYSE: CVX) is the only oil and gas supermajor in the Dow Jones index. It is a leading energy company that has operations in upstream, midstream, and downstream. Like all companies in the sector, Chevron has had a spectacular recovery in the past few months as demand and prices have jumped.

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Chevron’s revenue jumped from $94 billion in 2020 to over $155 billion in 2021. It has jumped by more than $206 billion in the past 12 months. As a result, it has moved from a loss of over $5.5 billion in 2020 to over $29 billion in the past 12 months. 

Chevron stock price will likely keep rising as Saudi Arabia and OPEC+ cartel plans to slash production in a bid to boost prices. 

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Microsoft (NASDAQ: MSFT) is a large technology company that has been a Dow Jones constituent for years. The company provides a wide array of products to individuals, companies, non-governmental organisations (NGOs), and governments. It is the second-biggest player in the cloud computing sector after Amazon.

The Microsoft stock price has rebounded by about 11% in the past 30 days in line with the performance of the market. Still, the shares are substantially below their highest point in 2021 since investors expect that it will have slow growth as inflation rises. Results by Salesforce and Autodesk signal that most companies are slashing their spending.

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Still, Microsoft is a good Dow Jones stock to buy because of its strong market share in the cloud computing business and strong cash flows.

Walt Disney 

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Walt Disney (NYSE: DIS) is another Dow Jones constituent to invest in. The firm provides several many products like Disney+, theme parks, Hulu, and studios among others.

Disney has been under intense pressure in the past few years due to Covid. Its annual revenue dropped from $69.6 billion in 2019 to over $65.38 billion in 2020. It then made a strong recovery in 2021 as its revenue rose to $67 billion. It has made $81 billion in the past four quarters. Disney’s stock price will likely continue rising in the coming months as its key segments recover.

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