What is Included in the Dow Jones Industrial Average (DJIA)?
An Overview of the DJIA's Components
The Dow Jones Industrial Average (DJIA) is a widely recognized stock market index that tracks the performance of 30 major blue-chip companies listed on the New York Stock Exchange (NYSE) and the NASDAQ.
Composition and Selection Criteria
The DJIA's components are carefully chosen based on strict criteria set by the editors of The Wall Street Journal, which oversees the index. Companies are evaluated on factors such as their market capitalization, industry representation, and financial health.
To be included in the DJIA, a company must meet the following requirements:
- Be a publicly traded stock listed on the NYSE or NASDAQ
- Have a market capitalization of at least $2 billion
- Be a leader in its industry
- Have a history of profitability and financial stability
Current Components
As of February 2023, the 30 companies that make up the DJIA are:
- 3M
- Amgen
- Apple
- Boeing
- Caterpillar
- Chevron
- Cisco
- Coca-Cola
- Dow
- Goldman Sachs
- Home Depot
- Honeywell
- IBM
- Intel
- Johnson & Johnson
- JPMorgan Chase
- McDonald's
- Merck
- Microsoft
- Nike
- Procter & Gamble
- Salesforce
- The Travelers Companies
- UnitedHealth Group
- Verizon
- Visa
- Walmart
- Walt Disney
The DJIA is a widely followed index that provides insights into the overall health and performance of the U.S. stock market. By understanding its composition and selection criteria, investors can gain a deeper understanding of the factors driving the index's movements.
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