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Jun 02, 2021 · Dow Jones 30 is home to the world’s notable brands like Apple, McDonald’s, Visa, Procter & Gamble, IBM, Walt Disney, Goldman Sachs Group, and a lot more. If you want to focus your portfolio with US stocks, the DJ30 index could be a good slice of your portfolio. How to Invest in Dow Jones 30 Index? Step 1: Open a trusted CFD Broker Account
- Microsoft. Market value: $1.8 trillion. Dividend yield: 0.9% Analysts' average recommendation: 1.39 (Strong Buy) Microsoft (MSFT, $234.51) might be the world's second-largest publicly traded company after Apple, but it once again beats the iPhone maker when it comes to being analysts' favorite Dow Jones stock.
- Visa. Market value: $445.2 billion. Dividend yield: 0.6% Analysts' average recommendation: 1.58 (Buy) Few blue-chip Dow 30 stocks get as many high marks from analysts, mutual funds, hedge funds and even Warren Buffett than Visa (V, $208.32).
- Salesforce.com. Market value: $221.1 billion. Dividend yield: N/A. Analysts' average recommendation: 1.57 (Buy) Salesforce.com (CRM, $240.95), which was added to the Dow in 2020, was doing cloud computing before before cloud-based services were cool.
- McDonald's. Market value: $158.0 billion. Dividend yield: 2.4% Analysts' average recommendation: 1.68 (Buy) McDonald's (MCD, $212.06) stock has been a serious market laggard in the pandemic, hurt by a steep drop in in-store traffic, but a number of analysts see it as a golden way to bet on the post-COVID-19 recovery.
2 days ago · Index members for Dow Jones Industrial Average (INDU) including public companies from various industries.
3 days ago · Track the latest stock market news happening on the Dow Jones today. Plus, get timely analysis of the DJIA and 30 Dow stocks, including Apple (AAPL), Boeing (BA), Microsoft (MSFT), Walmart (WMT)...
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May 24, 2021 · The Dow Jones Industrial Average, created in 1896, is a stock index composed of 30 large, “blue chip” corporations. The Dow has expanded to 30 companies from 20 in 1928. Today, the index includes a variety of corporate heavyweights, ranging from: Big Pharma companies such as Johnson & Johnson (JNJ) and Merck (MRK).
- The Birth of The DJIA
- The Original 12 Dow Jones Stocks
- Changes Over Time
- Which Companies Are in The Dow Today?
- Criticisms of The DJIA
- The Bottom Line
The Dow Jones Industrial Average got its start on May 26, 1896. The Dow was created by a man named Charles H. Dow, one of the founders of Dow Jones & Company (formed in 1882).1 Dow's first index was created in 1884. It had 11 transportation-related stocks. He changed the original index (on Wall Street, this process is known as “reconstituting”) and renamed it the Dow Jones Rail Average. In the 1970s, the name was updated to the Dow Jones Transportation Average to cover air freight and other forms of transport.1 Dow soon found that industrial firms were rising more quickly in value than railroads. He then made a new index using the stocks of twelve companies. He called it the Dow Jones Industrial Average (DJIA for short). The index was first made up of industrial companies, such as those in the cotton, sugar, tobacco, and gas sectors.1 To calculate the index figure, Dow added up all of the stock prices. He then divided it by the number of companies in the index at the time.
The original twelve stocks in the DJIA were almost entirely commodityfirms and were as follows: 1. American Cotton Oil Company 2. American Sugar Company 3. American Tobacco Company 4. Chicago Gas Company 5. Distilling & Cattle Feeding Company 6. General Electric 7. Laclede Gas Company 8. National Lead Company 9. North American Utility Company 10. Tennessee Coal & Iron 11. U.S. Leather Company (Preferred) 12. U.S. Rubber Company At the time, these were large, profitable, and highly valued firms. Most were replaced in the DJIA as their stock prices fell or they went out of business.
In 1916, the DJIA was updated to include 20 stocks. By 1928, it grew to 30. This is still the rule today.2 There are no rules for Dow inclusion. There is only a broad guide that requires large, respected, and substantial firms with high stock prices. In general, these firms represent a large portion of the economic activity in the United States.3
The most recent update to the index took effect on August 31, 2020. Amgen, Honeywell, and Salesforce were added, while ExxonMobil, Pfizer, and Raytheon were cut.4 The 30 Dow companies are now:5 1. Apple Inc. 2. Boeing Co. 3. Microsoft Corp. 4. Amgen Inc. 5. Walt Disney Co. 6. Travelers Cos. Inc. 7. Salesforce.com Inc. 8. Intel Corp. 9. Procter & Gamble Co. 10. Coca-Cola Co. 11. McDonald's Corp. 12. Visa Inc. Cl A 13. Cisco Systems Inc. 14. Johnson & Johnson 15. American Express Co. 16. International Business Machines Corp. 17. Walgreens Boots Alliance Inc. 18. Home Depot Inc. 19. Goldman Sachs Group Inc. 20. Merck & Co. Inc. 21. Honeywell International Inc. 22. Walmart Inc. 23. Chevron Corp. 24. 3M Co. 25. Nike Inc. Cl B 26. JPMorgan Chase & Co. 27. UnitedHealth Group Inc. 28. Verizon Communications Inc. 29. Dow Inc. 30. Caterpillar Inc.
The practical effect of Dow's calculation was that a stock with a $100 share price would have five times the influence on the DJIA as one with a $20 share price, even if the firm had a market capitalization that was 10 times as large. That’s why a company such as Berkshire Hathaway (BRK/A), which has traded for over $200,000 per share since mid-2016, couldn’t be added to the Dow without some modification in the formula; it would inflate the entire index.6 This flaw quickly became known when companies announced stock splits and other transactions that modified their nominal share prices. To make their shares more affordable, a growing company may double its number of outstanding shares by splitting them 2 to 1. An $80 stock would fall to $40, but there would be twice as many shares outstanding. Under the original calculation for the Dow Jones Industrial Average, this cosmetic change would result in the DJIA falling even if the stock were to increase in value. To compensate, the divis...
The Dow Jones Industrial Average has changed quite a bit over the past 100 years and will keep changing as the economy shifts. While it isn't the broadest measure of economic health, the Dow's history and makeup can help you decipher a common financial term.
May 27, 2021 · A more broad-based bet like the Dow Jones Industrial Average (DJINDICES:^DJI) seems the safer trade right now. That thinking, however, oversimplifies a more complicated situation.
May 26, 2021 · Expanding to 30 stocks isn't the only change to the Dow Jones. The sector breakdown is completely different. The technology sector now accounts for a larger slice of the Dow Jones than any other ...