The Dow Jones Industrial Average is a widely followed stock market measure of 30 stocks. I think the S&P 500 is a better measure to pay attention to, but the DJIA continues to be used and it has some historical interest. Today 2 stocks (Altria and Honeywell) were removed and two new stocks we added (Bank of America and Chevron). They were the two largest cap USA based companies (other than Berkshire Hathaway, Warren Buffett’s company) not in the DJIA. Bank of America has a market capitalization of $186 billion and Chevron’s is $165 billion. Google’s market cap is $160 billion.
I mentioned before I would replace GM with Toyota (though that might violate one of their traditions). I also would have added Google, with this update, rather than Bank of America (Citigroup, JPMorgan Chase, American Express and AIG are all financial industry companies and GE has huge financing components also).
The current DJIA stocks:
| Stock | Market Capitalization | Year Added |
|---|---|---|
| Exxon (XOM) | $438 Billion | 1928 |
| GE | 337 | 1896 |
| Microsoft | 260 | 1999 |
| AT&T (T) | 217 | 1999 |
| Proctor & Gamble (PG) | 200 | 1932 |
| Walmart (WMT) | 195 | 1997 |
| Bank of America (BAC) | 186 | 2007 |
| Johnson & Johnson (JNJ) | 178 | 1997 |
| Chevron (CVX) | 165 | 2007 |
| Pfizer (PFE) | 150 | 2004 |
| JPMorgan Chase (JPM) | 145 | 1991 |
| IBM | 145 | 1979 |
| Coca-Cola (KO) | 137 | 1987 |
| Citigroup (C) | 127 | 1997 |
| Intel (INTC) | 119 | 1999 |
| American International Group (AIG) | 114 | 2004 |
| Hewlett-Packard (HPQ) | 108 | 1997 |
| Verizon (VZ) | 104 | 2004 |
| Merck (MRK) | 97 | 1979 |
| United Technologies (UTX) | 68 | 1939 |
| McDonald’s (MCD) | 66 | 1985 |
| Boeing (BA) | 61 | 1987 |
| Walt Disney (DIS) | 60 | 1991 |
| 3M (MMM) | 55 | 1976 |
| American Express (AXP) | 51 | 1982 |
| Home Depot (HD) | 47 | 1999 |
| Caterpillar (CAT) | 42 | 1991 |
| DuPont (DD) | 41 | 1935 |
| Alcoa (AA) | 27 | 1959 |
| GM | 15 | 1925 |
Stocks worth consideration for inclusion: Berkshire Hathaway (BRK-A) $212 billion, Toyota (TM) $171 billion, Google (GOOG) $161 billion, Cisco (CSCO) $140 billion.
Related: Dow 30 Welcomes Two New Members – Google Approaching $500 and Entering the S&P 100 – 10 Stocks for 10 Years
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I discussed dropping GM from the Dow Jones Industrial Average in December of 2005: “I agree removing GM makes sense, though I see no reason to wait.”
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