Only about 120 businesses, out of millions, have ever earned designation as Dow Jones Industrial Average stocks in the index's 119-year history. There, they've served as reflections of the nation's overall market health.
Dow Jones Stocks
- A Complete List of Dow Jones Industrial Average Stocks
- 3 Candidates for the Next Dow Jones Industrial Average Companies
- How Well Do You Know the Dow Jones Industrial Average?
- Don't Dump Dow Jones Industrial Average Stocks Just Because the Index Did
- Dow Stocks That Are Down in 2014
The recent addition of Apple Inc. (Nasdaq: AAPL) to the roster of Dow Jones Industrial Average companies begs the question of which changes to the DJIA we're likely to see next.
Right now, several big and growing U.S. companies are prime candidates to join the DJIA when the committee makes its next move. And looking at the current list of Dow Jones Industrial Average companies, it's not hard to find those most likely to get the boot.
Most investors check on the Dow Jones Industrial Average at the end of every trading day, if not more frequently.
Over its 119-year history, the DJIA has become synonymous with the markets. But while investors big and small rely on the Dow Jones to measure how well or how poorly stocks are doing, how much do most people really know about it?
Most of the mainstream financial media is frothing over what Apple Inc. (Nasdaq: AAPL) will do for the Dow.
Apple will join 29 other Dow Jones Industrial Average stocks after the close of trading March 18. When it replaces AT&T Inc. (NYSE: T).
But a look at how Dow stocks do after changes to the index says AT&T stock is headed up.
You see, when you compare the performance of previous Dow Jones rejects with the stocks that replaced them, on average the rejects come out ahead.
The Dow has climbed 7% in 2014 as the index hit a record high 31 times.
Unfortunately, not all Dow stocks were able to revel in the rallies. In fact, nearly one-third of the market's companies had negative returns this year.