There is no denying 2013 was a memorable year for the Dow Jones Industrial Index, and as a result, the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA).
Last year, the venerable 30-stock index post its largest ever annual point gain and its biggest yearly percentage increase since 1995, according to S&P Dow Jones Indices. Although the Dow has changed over the years to better reflect the diversified U.S. economy, it was the industrial sector that played a big part in the index’s 2013 upside. [2013’s Best Industrial ETF]
Industrials were the top-performing Dow sector last year with Boeing (NYSE: BA) contributing almost 444.5 points. The Dow is a price-weighted index and Boeing is currently DIA’s fifth-largest holding, just ahead of Chevron (NYSE: CVX).
Last month, Dow members General Electric (NYSE: GE) and Boeing unveiled dividend increases. On Dec. 17, 3M (NYSE: MMM) boosted its dividend by a third while adding it could buy back up to $22 billion of shares through 2017. 3M, Boeing and United Technologies (NYSE: UTX) are three of DIA’s top-seven holdings. [Industrial ETFs Race Into 2014]
Overall, “industrials contributed the most to the DJIA in 2013, adding over 1,072 points. Financials and Consumer Services were the next in line, contributing ~704 and ~485 points respectively,” according to S&P Dow Jones Indices.
DJIA Point contributions by Industry
Chart Courtesy: S&P Dow Jones Indices
Only two stocks were negative contributors to the Dow last year – International Business Machines (NYSE: IBM) and Alcoa (NYSE: AA). IBM is DIA’s second-largest holding at a weight of 7.3%. Alcoa, along with Bank of America (NYSE: BAC) and Hewlett-Packard (NYSE: HPQ) were remove from the Dow and replaced with Visa (NYSE: V), Goldman Sachs (NYSE: GS) and Nike (NYSE: NKE). Visa and Goldman are now DIA’s largest and third-largest holdings, respectively, combining for about 15.4% of the fund’s weight. [What Three New Stocks Bring to the Dow ETF]
Twenty-two Dow members were positive contributors to the index in both 2012 and 2013, S&P Dow Jones Indices said.
Dow Points by Stock
Chart Courtesy: S&P Dow Jones Indices
At $11 billion, Exxon Mobil (NYSE: XOM), the largest U.S. oil company, was the Dow’s biggest dividend payer last year. AT&T (NYSE: T) was next at $9.84 billion followed by GE at $8.17 billion. All 30 Dow members pay dividends.
The Dow traded higher on 146 occasions last year and to the downside 106 times with 3M ranking as the stock most likely to rise, S&P Dow Jones Indices noted. Caterpillar (NYSE: CAT) was the Dow member to trade lower on any given day in 2013.
Tom Lydon’s clients own shares of General Electric.