The performance of the Dow Jones Industrial Average (^DJI) in 2025 is seen as a matter of perspective. Those with a pessimistic view might observe that it hasn’t gained as much this year compared to 2024. In contrast, optimistic observers could note that the index is on track for a strong performance if the current upward momentum continues.
Within the Dow Jones index, several companies are experiencing notable success this year. Three stocks, in particular, stand out for their strong performance thus far in 2025.
International Business Machines (IBM): IBM has emerged as the top-performing Dow Jones stock this year, with its shares increasing by nearly 20%. This growth is on course to surpass its 34% gain in 2024. The company’s success stems from its significant advances in the field of AI. In the fourth quarter of 2024, IBM reported revenue of $17.6 billion. CEO Arvind Krishna highlighted the growth of their generative AI business, which has exceeded $5 billion to date. Despite competition from China’s DeepSeek, IBM could benefit from the evolving AI landscape due to its focus on specific, real-world applications.
Amgen (AMGN): Amgen has also performed well in 2025, with shares rising by 16% year to date. This marks a notable recovery from a nearly 10% decline last year. Positive developments for the biotech company include surpassing analysts’ Q4 earnings expectations and seeing significant sales growth for ten of its products in 2024. Additionally, Amgen received FDA approval for Lumakras as a treatment for KRAS G12C-mutated metastatic colorectal cancer, addressing a critical medical need in the U.S.
- The Coca-Cola Company (KO): Coca-Cola has achieved a year-to-date gain of nearly 15%, bringing its stock close to an all-time high. The company’s recent quarterly results exceeded Wall Street’s revenue and earnings estimates. It also gained market share in the nonalcoholic ready-to-drink beverages sector. Coca-Cola maintained its reputation for reliable dividend payments by announcing its 63rd consecutive annual dividend increase, continuing its status as a Dividend King.
With impressive gains thus far, the question arises whether IBM, Amgen, and Coca-Cola are still attractive investment options. While these stocks have shown strong performance, they might not appeal to growth investors seeking rapid expansion. IBM may have potential for faster growth, possibly through breakthroughs in quantum computing. Amgen’s forward price-to-earnings ratio of 14.8 could attract value investors, with expectations for continued growth from products like Tezspire. Income-focused investors might favor all three, particularly Amgen and Coca-Cola. Amgen offers a forward dividend yield of 3.14%, while Coca-Cola boasts a strong track record of consistent dividend increases.
Keith Speights, the author, has no positions in the mentioned stocks, and The Motley Fool holds positions in and recommends IBM and Amgen.
