The Stocks in the DJIA
The Stocks in the DJIA
You have probably read in previous articles of how the Dow Jones Industrial Average, also known as the DJIA, can measure the growth or recession of the stock market through an examination of 30 different stocks from the different industries. You probably also heard of how the DJIA started and of the principles behind the concept of DJIA. For this article I would introduce you to the 30 stocks that comprise the DJIA. These stocks have been called the blue chips stocks because of the length of time they have been in existence and the stability that these companies are expected to have in the following years. These 30 blue chip corporations have withstood the test of time and endured many economic growth and set backs as well as the rise and fall of their competition. Many will say that these companies are institutions or benchmarks in their various industries.
The thirty blue chip stocks that are included in the DJIA, or more popularly called the “Dow”, can be subdivided into four major categories: the industrials, the financials, the consumer goods and the technology stocks. The industrial stocks are usually those that are involved in the industrial sector that includes vehicle and machine manufacturers including land vehicles and aerospace vehicles as well as chemical companies and metal companies. The blue chip stocks that are included in the industrials are Alcoa, Boeing, Caterpillar, Du Pont, General Motors, Honeywell, United Technologies and 3M.
As you may have guessed the financials involve companies that are in the financial sector that usually involves banks, financial institutions as well as insurance companies. The major blue chip stocks that have made it in the Dow are JP Morgan Chase, Citigroup, American International Group and American Express. The consumer goods category of the Dow includes the most number of blue chip stocks as it includes a variety of products. The consumer goods include pharmaceutical companies, beverage corporations, food industry, entertainment, furniture and decoration needs, clothing, cigarettes and just about any other thing that we use everyday. The companies that are included in the consumer goods category include Altria, Coca-cola, Disney, Home Depot, Johnson & Johnson, Merck, McDonalds, Pfizer, Procter & Gamble, and. Wal-Mart. Of course, there are also companies that are conglomerates and are involved in different sectors hence they are also represented in the Dow by conglomerate companies such as Exxon and General Electric.
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