What is The Dow Jones Industrial Average?

The History of The Dow Jones Industrial Average

Charles Dow is the man who co-founded Dow Jones & Company. This means he is the man behind the Wall Street Journal, its creation, and the Dow Jones Industrial Average. He essentially changed the way we look, follow, and organize markets.

Charles Dow passed away in 1902. Yet, over 100 years later some of his thoughts still hold profound value. After reading about him, I stumbled across one of his quotes that I think is perfect for long-term investors.

For those who can’t see the picture above, I’ve transcribed it below as well:

“Wall Street is often full of people today who have long of the market for a month, but who have made little or no money, because they have scared out by rumors and by small relapses. The man who see the market escapes this.” — Charles H. Dow

Charles Dow is essentially saying the more plugged in you are to markets, the potentially worse your returns will be because you will be constantly scared out by news, rumors, and headlines. I find this to be true and I have seen it countless times over the years. So maybe that’s the secret to market returns: get away and unplug to avoid the tabloids.

What’s rather fascinating about Charles Dow is that he himself was an investor and trader. He took his passion for markets and built it into something bigger. Through his trials and tribulations he created a massive company that has carrier his legacy onward. A few interesting notes about this:

He got far richer from starting his company than from his personal investing and trading.
However, he could have never started his company without his experiences in investing and trading.
Today, Dow Jones has taken on a life of its own, becoming a massive company for all.

The first 12 Stocks in the Dow Jones Industrial Average

The Dow Jones Industrial Average is an interesting thing. It’s been around for 121 years. It’s seen two world wars, several market crashes, and even more US Presidents.

It’s survived it all.

The Dow is up more than 32,000% since it was first calculated on May 26, 1896. That’s also not including dividends.

Today, the index is owned by Dow Jones & Company, which in turn is owned by News Corp.

A man named Charles Dow and his pal Edward Jones founded the Dow Jones Industrial Average. They were stock market fanatics at the time. Of the first 12 companies they picked in the original index, only General Electric is still in it today.

The Dow’s history is long and with it comes a great history lesson. A quick glimpse into its past shows the industries that were once in favor and those that fell out of favor. Two of the Dow’s first-ever components, for instance, were companies that solely manufactured leather and rubber. Today, the story could not be more different — it’s iPhones and Goldman Sachs.

The First 12 Companies in the Dow Jones Industrial Average

American Tobacco Company (regulated in 1911 for antitrust concerns and split into R. J. Reynolds, Liggett & Myers, and Lorillard)
American Cotton Oil Company (now part of Unilever)
American Sugar Company (now Domino Foods)
Chicago Gas Company (now a subsidiary of Integrys Energy Group)
Distilling & Cattle Feeding Company (now Millennium Chemicals)
Laclede Gas Company (still in operation, removed from the Dow in 1899)
National Lead Company (now NL Industries)
North American Company (broken up by the U.S. Securities and Exchange Commission (SEC) in 1946)
Tennessee Coal, Iron and Railroad Company (Now apart of US Steel).
U.S. Leather Company (disappeared in 1952)
United States Rubber Company (now apart of Michelin)
General Electric (still in the Dow today under the ticker $GE!)

Now, below I’ve included a list of Dow Stocks and their changes by specific years:

1920s: The Roaring Twenties and Expansion to 30 Stocks

Context: The Dow started the decade with 20 stocks and expanded to 30 on October 1, 1928, near the peak of the Roaring Twenties, just before the 1929 crash.

Dow Components at Start of Decade (circa 1920, 20 stocks):

American Can
American Car & Foundry
American Locomotive
American Smelting
American Sugar
American Telephone & Telegraph (AT&T)
Baldwin Locomotive
Central Leather
Corn Products Refining
General Electric
Goodrich
International Harvester
Republic Iron & Steel
Studebaker
Texas Company (Texaco)
U.S. Rubber
U.S. Steel
Westinghouse Electric
Western Union
Woolworth

Dow Components by 1929 (30 stocks after October 1, 1928 expansion):

Allied Chemical
American Can
American Smelting
American Sugar
American Tobacco B
Atlantic Refining
Bethlehem Steel
Chrysler
General Electric
General Motors
General Railway Signal
Goodrich
International Harvester
International Nickel
Mack Trucks
Nash Motors
North American
Paramount Publix
Postum Inc. (later General Foods)
Radio Corporation of America (RCA)
Sears Roebuck
Standard Oil (N.J.) (later Exxon)
Texas Company (Texaco)
Texas Gulf Sulphur
Union Carbide
U.S. Steel
Victor Talking Machine
Westinghouse Electric
Woolworth
Wright Aeronautical

Key Changes in the 1920s:

1928 Expansion: The Dow grew from 20 to 30 stocks, adding companies like Chrysler, General Motors, and Standard Oil (N.J.), reflecting the rise of automobiles and oil.
Additions: Newer industries like radio (RCA) and entertainment (Paramount Publix) emerged.
Removals: Companies like American Car & Foundry and American Locomotive were dropped as the economy diversified beyond railroads and heavy machinery.

1930s: The Great Depression

Dow Components at Start of Decade (1930):

Same as the 1929 list above, with minor adjustments post-crash.

Key Changes in the 1930s:

1932 Overhaul: Eight stocks were replaced amid the Depression:
- Removed: American Sugar, Wright Aeronautical, General Railway Signal, Victor Talking Machine, Atlantic Refining, Texas Gulf Sulphur, Mack Trucks, North American.
- Added: Coca-Cola, Procter & Gamble, IBM, National Steel, Borden, Eastman Kodak, Loew’s, United Air Transport (later United Airlines).
- Significance: Consumer goods (Coca-Cola, Procter & Gamble) and technology (IBM) gained prominence as industrial firms faltered.
1935: DuPont and National Steel replaced Borden and Coca-Cola (Coca-Cola returned later).
1939: United Aircraft (later United Technologies) and AT&T replaced Nash Motors and IBM (IBM returned later).

End of Decade Snapshot (1939):

Allied Chemical, American Can, American Smelting, American Tobacco B, AT&T, Bethlehem Steel, Chrysler, Coca-Cola, Corn Products Refining, DuPont, Eastman Kodak, General Electric, General Foods, General Motors, Goodyear, International Harvester, International Nickel, Johns-Manville, Loew’s, National Distillers, Procter & Gamble, Sears Roebuck, Standard Oil (N.J.), Texas Company, Union Carbide, United Aircraft, U.S. Steel, Westinghouse Electric, Woolworth.

1940s: World War II and Post-War Recovery

Dow Components at Start of Decade (1940):

Same as 1939 list above.

Key Changes in the 1940s:

No major compositional changes occurred during this decade, reflecting stability amid war and recovery.
Companies like General Motors, U.S. Steel, and United Aircraft benefited from wartime production.

End of Decade Snapshot (1949):

Same as 1939, with no significant swaps.

1950s: Post-War Boom

Dow Components at Start of Decade (1950):

Allied Chemical, American Can, American Smelting, American Tobacco B, AT&T, Bethlehem Steel, Chrysler, Corn Products Refining, DuPont, Eastman Kodak, General Electric, General Foods, General Motors, Goodyear, International Harvester, International Nickel, Johns-Manville, Loew’s, National Distillers, Procter & Gamble, Sears Roebuck, Standard Oil (N.J.), Texas Company, Union Carbide, United Aircraft, U.S. Steel, Westinghouse Electric, Woolworth.

Key Changes in the 1950s:

1956: Johns-Manville replaced by International Paper.
1959: American Smelting and Corn Products replaced by Owens-Illinois Glass and Swift & Co.; Anaconda Copper replaced Loew’s.

End of Decade Snapshot (1959):

Allied Chemical, American Can, AT&T, Anaconda Copper, Bethlehem Steel, Chrysler, DuPont, Eastman Kodak, General Electric, General Foods, General Motors, Goodyear, International Harvester, International Nickel, International Paper, National Distillers, Owens-Illinois Glass, Procter & Gamble, Sears Roebuck, Standard Oil (N.J.), Swift & Co., Texas Company, Union Carbide, United Aircraft, U.S. Steel, Westinghouse Electric, Woolworth.

1960s: Economic Expansion

Dow Components at Start of Decade (1960):

Same as 1959 list.

Key Changes in the 1960s:

No major changes until late in the decade, reflecting a stable period of growth.

End of Decade Snapshot (1969):

Same as 1959, with minor name changes (e.g., Standard Oil (N.J.) became Exxon in 1972, but still listed as Standard Oil in 1969).

1970s: Stagflation and Energy Crisis

Dow Components at Start of Decade (1970):

Same as 1969.

Key Changes in the 1970s:

1976: International Harvester replaced by 3M (Minnesota Mining & Manufacturing).
1979: IBM and Merck replaced Chrysler and Esmark (formerly Swift & Co.).

End of Decade Snapshot (1979):

Allied Chemical, American Can, AT&T, Anaconda Copper, Bethlehem Steel, DuPont, Eastman Kodak, Exxon, General Electric, General Foods, General Motors, Goodyear, IBM, International Nickel, International Paper, Merck, 3M, National Distillers, Owens-Illinois Glass, Procter & Gamble, Sears Roebuck, Texas Company (Texaco), Union Carbide, United Aircraft, U.S. Steel, Westinghouse Electric, Woolworth.

1980s: Tech and Finance Rise

Dow Components at Start of Decade (1980):

Same as 1979.

Key Changes in the 1980s:

1982: American Express replaced American Can (renamed Primerica).
1985: Chevron replaced American Tobacco B; Philip Morris and McDonald’s replaced General Foods and Anaconda Copper.
1987: Boeing and Coca-Cola returned, replacing Owens-Illinois Glass and International Nickel (Inco).

End of Decade Snapshot (1989):

Allied-Signal (formerly Allied Chemical), American Express, AT&T, Bethlehem Steel, Boeing, Chevron, Coca-Cola, DuPont, Eastman Kodak, Exxon, General Electric, General Motors, Goodyear, IBM, International Paper, McDonald’s, Merck, 3M, Philip Morris, Procter & Gamble, Sears Roebuck, Texaco, Union Carbide, United Technologies (formerly United Aircraft), U.S. Steel, Westinghouse Electric, Woolworth.

1990s: Tech Boom

Dow Components at Start of Decade (1990):

Same as 1989.

Key Changes in the 1990s:

1991: Caterpillar, Disney, and J.P. Morgan replaced Navistar (formerly International Harvester), U.S. Steel, and Primerica.
1997: Hewlett-Packard, Johnson & Johnson, Travelers Group, and Walmart replaced Westinghouse Electric, Texaco, Bethlehem Steel, and Woolworth.
1999: Microsoft and Intel (first Nasdaq stocks) replaced Chevron and Goodyear; Home Depot and SBC Communications replaced Union Carbide and Sears Roebuck.

End of Decade Snapshot (1999):

Allied-Signal, American Express, AT&T, Boeing, Caterpillar, Coca-Cola, Disney, DuPont, Eastman Kodak, Exxon, General Electric, General Motors, Hewlett-Packard, Home Depot, IBM, Intel, International Paper, Johnson & Johnson, J.P. Morgan, McDonald’s, Merck, Microsoft, 3M, Philip Morris, Procter & Gamble, SBC Communications, Travelers Group, United Technologies, Walmart.

2000s: Dot-Com Bust and Financial Crisis

Dow Components at Start of Decade (2000):

Same as 1999.

Key Changes in the 2000s:

2004: AIG, Pfizer, and Verizon replaced AT&T, Eastman Kodak, and International Paper.
2008: Bank of America and Chevron replaced Altria (formerly Philip Morris) and Honeywell; Kraft Foods replaced AIG.
2009: Cisco and Travelers replaced Citigroup and General Motors (both hit by the financial crisis).

End of Decade Snapshot (2009):

American Express, Bank of America, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, DuPont, ExxonMobil (name change from Exxon), General Electric, Hewlett-Packard, Home Depot, IBM, Intel, Johnson & Johnson, J.P. Morgan Chase (name change), Kraft Foods, McDonald’s, Merck, Microsoft, 3M, Pfizer, Procter & Gamble, Travelers, United Technologies, Verizon, Walmart.

2010s: Modernization and Tech Dominance

Dow Components at Start of Decade (2010):

Same as 2009.

Key Changes in the 2010s:

2012: UnitedHealth replaced Kraft Foods.
2013: Goldman Sachs, Nike, and Visa replaced Alcoa (formerly Aluminum Co. of America), Bank of America, and Hewlett-Packard.
2015: Apple replaced AT&T.
2017: DowDuPont replaced DuPont.
2018: Walgreens Boots Alliance replaced General Electric.
2019: Dow Inc. replaced DowDuPont (post-split).

End of Decade Snapshot (2019):

American Express, Apple, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, Dow Inc., ExxonMobil, Goldman Sachs, Home Depot, IBM, Intel, Johnson & Johnson, J.P. Morgan Chase, McDonald’s, Merck, Microsoft, Nike, Pfizer, Procter & Gamble, Travelers, United Technologies, UnitedHealth, Verizon, Visa, Walgreens Boots Alliance, Walmart.

2020s: Ongoing Evolution (as of February 18, 2025)

Dow Components at Start of Decade (2020):

Same as 2019.

Key Changes in the 2020s:

2020: Salesforce, Amgen, and Honeywell replaced ExxonMobil, Pfizer, and Raytheon Technologies (formerly United Technologies, adjusted post-merger).
2024: Amazon replaced Walgreens Boots Alliance; Nvidia replaced Intel.

Current Snapshot (February 18, 2025):

Amazon, American Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, Dow Inc., Goldman Sachs, Home Depot, Honeywell, IBM, Johnson & Johnson, J.P. Morgan Chase, McDonald’s, Merck, Microsoft, Nike, Procter & Gamble, Salesforce, Travelers, UnitedHealth, Verizon, Visa, Walmart, 3M, Nvidia.

Summary of Trends

1920s-1930s: Shift from railroads and raw materials to consumer goods and early tech.
1940s-1950s: Stability with industrial and manufacturing focus.
1960s-1970s: Diversification with healthcare (Merck) and tech (IBM) emerging.
1980s-1990s: Rise of finance (J.P. Morgan), fast food (McDonald’s), and tech (Microsoft, Intel).
2000s-2010s: Tech dominance (Apple, Cisco) and decline of old industries (General Electric, ExxonMobil).
2020s: Modern tech giants (Amazon, Nvidia) replace legacy firms (Walgreens, Intel).

The Dow is one of many ways to gauge market health. To understand the tools that traders use alongside it, explore my guide on candlestick trading patterns, or learn how to use a stop loss to protect yourself when the Dow turns south. You can also track market sentiment in real time with tools like the Dollar Volume Counter.