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Can the eight worst-performing Dow Jones stocks in 2024 beat the S&P 500 in 2025?

2024 was an excellent year for the major stock indices. But the Dow Jones Industrial Average (DJINDICES: ^DJI) had only a 12.9% return, compared to 23.3% for the S&P500 (SNPINDEX: ^GSPC) and 28.6% for the Nasdaq Composite.

Eight of the thirty Dow components will lose value by 2024. And while these companies come from completely different industries, they are all similar because they are dividend-paying value stocks.

Here’s a quick overview of each company to help you determine which dividend stocks are the best buys right now.

Image source: Getty Images.

A rally at the end of the year Boeing (NYSE: BA) wasn’t enough to climb past Nike (NYSE:NKE)making the aircraft manufacturer the worst performing Dow stock in 2024:

^IXIC diagram
^IXIC data by YCharts.

Nike’s decades-long moat in footwear and sportswear is under threat. Competitors have achieved sales and margin growth, while Nike has struggled to identify trends in purchasing behavior. Sales growth has stalled and margins have fallen as the transition from wholesale distribution to a mix of wholesale and direct-to-consumer has not been successful.

Excluding the short stock market sell-off due to COVID-19 in March 2020, Nike is at an eight-year low. The good news is that expectations are low and stocks could recover if things improve. But Nike operates in a cyclical industry and is highly exposed to international markets, including China. So investors should only consider the stock if they believe in the brand’s long-term growth and are willing to hold out through periods of volatility. Nike has a decent dividend yield of 2.1%, which is an incentive to wait and give the company time to recover.

Boeing has been performing worse than the industrial sector for years. The COVID pandemic had a drastic impact on the company’s business model. There were also problems with the release of the 737 MAX. Then came supply chain challenges and inflation. Early last year, a door plug blew out of a 737 MAX in flight, causing a new wave of safety problems for the company. Throw in a bad year for Boeing’s Defense, Space, & Security business, and it’s easy to see why the stock performed so poorly last year and is down 50% over the past five years.

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Like Nike, Boeing now has a new CEO, and expectations are low, so it wouldn’t take much for the stock price to turn around. Investors got some good news in December when the company received a major order for 737 MAX aircraft, but much more will be needed to restore confidence in Boeing’s lineup and ability to innovate.

Boeing cut its dividend at the start of the pandemic and hasn’t restored it since, making it a pure turnaround candidate with no passive income potential at this point.

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