Starting next Monday GM and Citigroup will no longer be in the list of 30 companies making up the Dow Jones Industrial Average. I posted in 2005 that GM should be dropped from the DJIA. GE has lasted in the Dow for more than 100 years. 12 of the 30 stocks have been added since 1997. Cisco and Travelers are the companies that are joining the Dow on June 8th.
The 30 stocks of the Dow Jones Industrial Average, as of June 8th, 2009:
| Stock | Market Capitalization | Year Added |
|---|---|---|
| Exxon (XOM) | $347 Billion | 1928 |
| Walmart (WMT) | 195 | 1997 |
| Microsoft | 189 | 1999 |
| Proctor & Gamble (PG) | 155 | 1932 |
| Johnson & Johnson (JNJ) | 153 | 1997 |
| GE | 147 | 1896 |
| AT&T (T) | 145 | 1999 |
| IBM | 143 | 1979 |
| JPMorgan Chase (JPM) | 141 | 1991 |
| Chevron (CVX) | 138 | 2008 |
| Coca-Cola (KO) | 113 | 1987 |
| Cisco (CSCO) | 112 | 2009 |
| Pfizer (PFE) | 100 | 2004 |
| Intel (INTC) | 91 | 1999 |
| Hewlett-Packard (HPQ) | 85 | 1997 |
| Verizon (VZ) | 84 | 2004 |
| Bank of America (BAC) | 75 | 2007 |
| McDonald’s (MCD) | 66 | 1985 |
| Merck (MRK) | 58 | 1979 |
| United Technologies (UTX) | 52 | 1939 |
| Walt Disney (DIS) | 47 | 1991 |
| 3M (MMM) | 41 | 1976 |
| Home Depot (HD) | 41 | 1999 |
| Kraft (KFT) | 39 | 2008 |
| Boeing (BA) | 34 | 1987 |
| American Express (AXP) | 31 | 1982 |
| DuPont (DD) | 27 | 1935 |
| Travelers (TRV) | 27 | 2009 |
| Caterpillar (CAT) | 22 | 1991 |
| Alcoa (AA) | 9 | 1959 |
Stocks worth consideration for inclusion, in my opinion: Toyota (TM) $128 billion, Google (GOOG) $134 billion (the way the Dow is calculated – where the impact of an individual stock is based on stock price [not market cap as you might think] – means Google is not likely to be included unless they change that calculation) and Danaher (DHR) $20 billion. Market capitalization figures are from 1 June 2009. Cisco was on my previous list of stocks worth including.
Related: Dow Jones Industrial Average Changes Feb 2008 – Curious Cat Investing Books – 12 Stocks for 10 Years, March 2009 Update
Comments
3 Comments so far
I think it’s pretty ridiculous that GM stayed on the list for as long as it did!
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