Dow Jones Industrial Average (DJIA) Components: A Comprehensive Guide

The Dow Jones Industrial Average (DJIA), often referred to simply as the Dow, is a stock market index that measures the performance of 30 large-cap publicly traded companies in the United States. It is one of the oldest and most widely followed indices in the world, serving as a benchmark for the overall health of the U.S. economy.

The 30 companies that make up the Dow are carefully selected by the Wall Street Journal, which publishes the index. These companies are chosen based on factors such as size, liquidity, and industry representation. The Dow is a price-weighted index, meaning that the price of each stock contributes directly to the index’s overall value. This weighting system can make the index susceptible to volatility, as the price of a single stock can have a significant impact on the overall value of the index.

Current Dow Jones Industrial Average (DJIA) Components

• 3M Company (MMM) – Industrial conglomerate
• American Express Company (AXP) – Financial services
• Amgen Inc. (AMGN) – Biotechnology
• Apple Inc. (AAPL) – Technology
• Boeing (BA) – Aerospace and defense
• Caterpillar Inc. (CAT) – Construction and mining equipment
• Chevron Corporation (CVX) – Energy
• Cisco Systems, Inc. (CSCO) – Technology
• The Coca-Cola Company (KO) – Beverages
• Dow Inc. (DOW) – Chemicals
• DuPont de Nemours, Inc. (DD) – Chemicals
• Exxon Mobil Corporation (XOM) – Energy
• Goldman Sachs Group, Inc. (GS) – Financial services
• The Home Depot, Inc. (HD) – Home improvement
• Honeywell International Inc. (HON) – Aerospace and technology
• IBM (IBM) – Technology
• Intel Corporation (INTC) – Technology
• Johnson & Johnson (JNJ) – Pharmaceuticals and healthcare
• JPMorgan Chase & Co. (JPM) – Financial services
• The Travelers Companies, Inc. (TRV) – Insurance
• Nike, Inc. (NKE) – Footwear and apparel
• Pfizer Inc. (PFE) – Pharmaceuticals
• Philip Morris International Inc. (PM) – Tobacco
• Procter & Gamble Company (PG) – Consumer goods
• Salesforce, Inc. (CRM) – Software
• The Walt Disney Company (DIS) – Entertainment
• UnitedHealth Group Incorporated (UNH) – Healthcare
• Verizon Communications Inc. (VZ) – Telecommunications
• Visa Inc. (V) – Financial services
• Walgreens Boots Alliance, Inc. (WBA) – Pharmacies and drugstores

Understanding the Components

Each of the 30 companies in the Dow represents a different sector of the U.S. economy. The sectors include:

• Technology – Apple Inc., Cisco Systems, Inc., IBM, Intel Corporation, Salesforce, Inc.
• Financial services – American Express Company, Goldman Sachs Group, Inc., JPMorgan Chase & Co., The Travelers Companies, Inc., Visa Inc.
• Energy – Chevron Corporation, Exxon Mobil Corporation
• Healthcare – Amgen Inc., Johnson & Johnson, Pfizer Inc., UnitedHealth Group Incorporated
• Consumer goods – The Coca-Cola Company, Nike, Inc., Procter & Gamble Company, Walgreens Boots Alliance, Inc.
• Industrials – 3M Company, Boeing, Caterpillar Inc., Dow Inc., DuPont de Nemours, Inc., Honeywell International Inc.
• Retail – The Home Depot, Inc.
• Media and entertainment – The Walt Disney Company
• Telecommunications – Verizon Communications Inc.
• Chemicals – Dow Inc., DuPont de Nemours, Inc.
• Aerospace and defense – Boeing, Honeywell International Inc.
• Pharmaceuticals – Amgen Inc., Johnson & Johnson, Pfizer Inc.
• Insurance – The Travelers Companies, Inc.
• Tobacco – Philip Morris International Inc.
• Footwear and apparel – Nike, Inc.
• Beverages – The Coca-Cola Company
• Construction and mining equipment – Caterpillar Inc.
• Home improvement – The Home Depot, Inc.
• Pharmacies and drugstores – Walgreens Boots Alliance, Inc.

Historical Changes in Dow Components

The composition of the Dow Jones Industrial Average has changed over time, as companies have merged, been acquired, or fallen out of favor with investors. Some notable changes include:

• General Electric (GE) was a Dow component for over a century, but it was removed in 2018 after years of declining performance.
• AT&T (T) was removed from the Dow in 2018 and replaced by Salesforce, Inc.
• ExxonMobil (XOM) and Chevron (CVX) have been in and out of the Dow several times over the years, reflecting the changing fortunes of the energy sector.
• IBM (IBM) has been a Dow component since 1935, making it one of the longest-tenured companies in the index.

Significance of the Dow Jones Industrial Average

The Dow Jones Industrial Average is a widely watched indicator of the overall health of the U.S. stock market and economy. It is often used by investors as a benchmark for the performance of their own portfolios. The Dow is also frequently mentioned in the news and is a popular topic of discussion among financial analysts.

While the Dow is a valuable tool for investors, it is important to note that it is just one indicator of market performance. It is important to consider other indices and factors when making investment decisions.