To many investors, the Dow Jones industrials sector is the heart of the U.S. stock market. First published in 1896 with 12 leading manufacturers, the Dow Jones Industrial Average includes blue-chip companies such as IBM, General Electric and Bank of America. Historical evidence shows that your company's investment in this sector can be a solid financial decision.

Because the industrials sector index is a composed of 30 of the largest and strongest companies, its performance has generally been a stock market leader. In addition, the index is refined periodically to reflect changes in the U.S. business landscape. As you collect industrials sector information, keep these points in mind:

1. The Dow Jones Industrial Average is a weighted figure rather than the average price for stock of members of the industrial sector.

2. Investors can buy stock in individual companies in the industrial sector or a mutual fund composed of some of them.

3. Brokerage firms offer information and help with industrials sector investments.

Action Steps
The best contacts and resources to help you get it done

Conduct research on industrials sector stock performance

The weighted industrial average doesn't reflect stock splits and similar events among sector companies. Study the historical performances of the stocks to get a true picture of your company's investment potential.

I recommend: You can find detailed information on the industrials sector, including the companies making up the segment and the sector's performance, at Business Week. The Net Fool also provides information about companies in the sector, with recommendations for companies to watch.

Ask an industrials sector consultant about the pros and cons of investment strategies

The industrials sector is a high-profile business in the brokerage world. Most investment firms have experts who can provide industrials sector advice, including detailed historical data and company information. Couple that with company research to develop a strategy to guide the investment.

I recommend: At MSN Money, you can track the historical performance of stocks and investment funds. EResearch at Fidelity shows changes for the industrial sector over periods ranging from one week to five years.

Use information to guide your company's investment in the industrials sector

Investigate the holdings of several industrials sector funds. If you don't find the mix of stocks your company is looking for, engage a broker to build a customized portfolio. Before deciding, consider 'practicing' with online investment tools and free trades.

I recommend: ALPS Distributors manages a industrial sector fund that includes leading stocks such as General Electric and 3M. Spend time checking into similar funds. To "get a feel for" the investment business, try the E*Trace Financial offer of 100 stock trades without commission.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You might want someone in your company to take a course on investing in the stock market with an emphasis on the industrials sector. Industrials sector training will allow him or her to note trends and track performance with some confidence.
• •  Although the industrials sector is adjusted to reflect the 'real world' of American business, it is not always the leader in gains (or losses). In large part this is due to the size of the companies and their international scope.