Out Of The 30 Stocks In The Dow Jones Industrial Average

Out of the 30 stocks in the Dow Jones Industrial Average, I ended up choosing Goldman Sachs. Goldman Sachs is an American multinational finance company that globally engages in investment banking, investment management, securities, and other financial services including asset management, mergers and acquisitions advice, prime brokerage, and securities underwriting services. It also sponsors private equity funds, is a market maker, and is a primary dealer in the United States Treasury security market. Some of Goldman Sachs major competitors include Morgan Stanley, Wells Fargo, Citigroup, Bank of America, JPMorgan Chase, and US Bancorp. Goldman Sachs plans on outperforming its competitors by starting to shift to focus both nationally, and internationally, something that other financial service companies aren’t doing. This could have a huge impact on the stock, hopefully for the better. The company’s current financial performance is quite well. Their earnings per share were 16.36 for 2016, 19.50 for 2017, and 22.00 for 2018. They have a dividend yield of 1.2%, which is good, especially for long-term holders

The primary focus of the tax cut was a substantial reduction in the top corporate income tax rate, from 35% down to 21%. According to Platt, “This will likely increase Goldman’s net profit margin, and could increase the top line by improving prospects for the American corporations that the company serves.” Platt goes on to say “However, Goldman estimates that in the fourth quarter, the company will take a $5 billion hit to earnings, mainly due to the newly enacted repatriation tax for cash and assets held overseas, as well as from a remeasurement of U.S. deferred tax assets due to the lower corporate tax rate.” This is a risk if you chose to invest in Goldman Sachs, although you could always decide to wait until after the fourth