Everything About Dow Jones Industrial Average – Dow 10 Years Chart

Written by Fxigor in Indices

What is Dow Jones?

Dow Jones or Dow or DIJA represents a stock index of 30 blue-chip industrial and financial companies in the United States. The Dow Jones index is price-weighted and does not account for changes in market capitalization. Dow Jones & Co. was founded in 1882 by Charles Dow, Edward Jones, and Charles Bergstresser.

What is Dow Jones today?


In the real-time chart below, let us see how much is the dow jones right now and Dow Jones change today:

Dow Jones industrial average index real-time
If you have a passion for investing in stocks and shares, then it is pretty apparent that you would have come across DOW JONES. When we talk about this stock index, we should have a reasonably good idea about DJIA. It tracks the movement of the most famous, large, and publicly owned companies that are from the blue-chip category. The shares and stocks that are part of DJIA are traded quite extensively on the NASDAQ and NYSE.

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It would be pertinent to mention here that Dow Jones has been christened in commemoration of C. Dow. He gave birth to this index way back in 1896 with Edward Jones, his business partner.

Why is it called Dow Jones? Dow Jones index got its name based on two founders Charles Dow and Edward Jones (Dow + Jones).

There are a few things unique about DJIA. It stands second as far as the age of stock indexes is concerned. The first one being DJTA. The main objective of DJIA was to be a barometer of the economy of this country from a broader perspective. If you are looking for a benchmark index for the USA’s best stocks, there are reasons to believe it is the best. It is an index based on price weightage, and as mentioned earlier, it tracks the best and widely traded shares.

There is no doubt that this an overall index in the USA and across the world. All the firms that make up the DJIA can easily be classified as top-notch companies. They boast of stable earnings, consistently and continuously. Some big names that are part of DJIA are Microsoft Corporation and many other such big words.
The DJIA has traveled quite a distance since it began its journey. When it started, DJIA had only two companies. Most of these 12 companies were from various sectors covering sugar, gas, cotton, railroads, tobacco, sugar, etc. It also would be interesting to mention here that the economy was almost totally dependent on major industrial companies’ growth in the early part of the last century, as discussed above. Even today, a strong Dow is seen as a reflection of a strong U.S economy. However, the index composition changed with time. There are many instances where a company has been taken off from the DJIA list and replaced with a new, purely based on merit and performance. Suppose a company ends up losing a significant portion of its market capitalization because of various reasons. In that case, it gets replaced by a new company that has the credentials and money to replace the outgoing company.

Dow Jones Chart 10 Years

Below is presented Dow Jones 10 years chart:

Dow Jones U.S. Small-Cap Total Stock Market Index

Below is presented last 10 years’ chart of the Dow Jones small-cap index. Dow Jones adjusted for inflation index showed interesting return. Dow Jones average annual return last 10 years was 10.43% for small caps (annualized for inflation).

Dow Jones historical chart – Dow Jones 100 year chart

Below is presented closing price of the Dow Jones industrial average for the last 100 years:


Dow jones historical prices by year – Dow Jones industrial average historical annual data

This Dow Jones graph above presents historical closing prices for the Dow index from 1915 till 2021. The first increase in price Dow had in 1980. Dow Jones 1980 till 2000. increased up to $10000.   If we analyze the Dow Jones industrial average’s closing price, we can see the rapid gain in the last 10 years. Dow Jones’s 100-year chart showed that in 2007 Dow’s industrial average price was $12050 while in 2009 went down to $6547. So in just two years, Dow’s price has halved. After that, from $6547 in just 12 years, the Dow price has risen above $3000.

Dow returns by year – Dow Jones historical prices by year from 1915

YearDow Year Open Dow Year High Dow Jones Year Low Dow Year Close Annual% Change
191574.4554.6399.2154.2299.150.8149
191695.2798.81110.1586.4295-0.0419
191787.8796.1599.1865.9574.38-0.2171
191880.9776.6889.0773.3882.20.1051
191999.7982.6119.6279.35107.230.3045
192090.01107.23108.8566.7571.95-0.329
192173.3972.6781.563.980.80.123
192293.2478.91102.7678.5998.170.215
192394.8798.77105.3885.9195.52-0.027
192499.6595.65120.5188.33120.510.2616
1925134.4121.25159.39115151.080.2537
1926153151.08166.14135.2157.20.0405
1927176.07155.16200.93152.73200.70.2767
1928226.17203.35300191.333000.4948
1929313.54307.01381.17198.69248.48-0.1717
1930236.04244.2294.07157.51164.58-0.3377
1931138.6169.84194.3673.7977.9-0.5267
193264.5374.6288.7841.2259.93-0.2307
193384.559.29108.6750.1699.90.6669
193498.16100.36110.7485.51104.040.0414
1935120.35104.51148.4496.71144.130.3853
1936162.07144.13184.9143.11179.90.2482
1937166.45178.52194.4113.64120.85-0.3282
1938132.36120.57158.4198.95154.760.2806
1939142.57153.64155.92121.44150.24-0.0292
1940134.64151.43152.8111.84131.13-0.1272
1941121.93130.57133.59106.34110.96-0.1538
1942107.15112.77119.7192.92119.40.0761
1943134.92119.93145.82119.26135.890.1381
1944143.32135.92152.53134.22152.320.1209
1945169.66152.58195.82151.35192.910.2665
1946191.52191.66212.5163.12177.2-0.0814
1947177.48176.39186.85163.21181.160.0223
1948179.78181.04193.16165.39177.3-0.0213
1949179.67175.03200.52161.6200.130.1288
1950216.28198.89235.47196.81235.410.1763
1951257.41239.92276.37238.99269.230.1437
1952270.35269.86292256.35291.90.0842
1953275.84292.14293.79255.49280.9-0.0377
1954334.34282.89404.39279.87404.390.4396
1955442.69408.89488.4388.2488.40.2077
1956493.21485.78521.05462.35499.470.0227
1957476.07496.03520.77419.79435.69-0.1277
1958491.26439.27583.65436.89583.650.3396
1959632.57587.59679.36574.46679.360.164
1960618.02679.06685.47566.05615.89-0.0934
1961691.74610.25734.91610.25731.140.1871
1962639.14724.71726.01535.76652.1-0.1081
1963714.69646.79767.21646.79762.950.17
1964834.09766.08891.71766.08874.130.1457
1965910.7869.78969.26840.59969.260.1088
1966872.78968.54995.15744.32785.69-0.1894
1967879.48786.41943.08786.41905.110.152
1968903.96906.84985.21825.13943.750.0427
1969875.72947.73968.85769.93800.36-0.1519
1970753.12809.2842631.16838.920.0482
1971884.87830.57950.82797.97890.20.0611
1972950.08889.31036.27889.151020.020.1458
1973924.071031.681051.7788.31850.86-0.1658
1974759.13855.32891.66577.6616.24-0.2757
1975802.89632.04881.81632.04852.410.3832
1976975.2858.711014.79858.711004.650.1786
1977894.37999.75999.75800.85831.17-0.1727
1978821.13817.74907.74742.12805.01-0.0315
1979844.38811.42897.61796.67838.740.0419
1980891.14824.571000.17759.13963.990.1493
1981932.95972.781024.05824.01875-0.0923
1982884.53882.521070.55776.921046.540.196
19831190.781027.041287.21027.041258.640.2027
19841178.591252.741286.641086.571211.57-0.0374
19851327.991198.871553.11184.961546.670.2766
19861793.11537.731955.571502.291895.950.2258
19872277.531927.312722.421738.741938.830.0226
19882061.482015.252183.51879.142168.570.1185
19892510.332144.642791.412144.642753.20.2696
19902679.452810.152999.752365.12633.66-0.0434
19912929.042610.643168.832470.33168.830.2032
19923284.083172.43413.23136.63301.110.0417
19933524.923309.23794.3332423754.090.1372
19943794.223756.63978.363593.353834.440.0214
19954494.283838.485216.473832.085117.120.3345
19965739.635177.456560.915032.946448.270.2601
19977447.016442.498259.36391.77908.30.2264
19988630.7679659374.277539.079181.430.161
199910481.569184.2711497.129120.6711497.120.2522
200010729.3811357.5111722.989796.0310787.99-0.0617
200110199.2910646.1511337.928235.8110021.57-0.071
20029214.8510073.410635.257286.278341.63-0.1676
20039006.648607.5210453.927524.0610453.920.2532
200410315.5110409.8510854.549749.9910783.010.0315
200510546.6610729.4310940.5510012.3610717.5-0.0061
200611409.7810847.4112510.5710667.3912463.150.1629
200713178.2612474.5214164.5312050.4113264.820.0643
200811244.0613043.9613058.27552.298776.39-0.3384
20098885.659034.6910548.516547.0510428.050.1882
201010668.5810583.9611585.389686.4811577.510.1102
201111957.5711670.7512810.5410655.312217.560.0553
201212966.4412397.3813610.1512101.4613104.140.0726
201315009.5213412.5516576.6613328.8516576.660.265
201416777.6916441.3518053.7115372.817823.070.0752
201517587.0317832.9918312.3915666.4417425.03-0.0223
201617927.1117148.9419974.6215660.1819762.60.1342
201721750.219881.7624837.5119732.424719.220.2508
201825046.8624824.0126828.3921792.223327.46-0.0563
201926379.5523346.2428645.2622686.2228538.440.2234
202026890.6728868.830606.4818591.9330606.480.0725
202131576.4330223.8933171.3729982.6233153.210.0832

What is the average return for Dow Jones?

Below is the calculated average return for the Dow index from 2011-2021, 2001-2021, and 1991-2021.

What is Dow Jones’s average return for the last 10 years?

  • The total Dow Jones Industrial Average Return for the last 10 years adjusted for inflation is 122.010%.
  • Annualized Dow Jones Industrial Average Return for the last 10 years adjusted for inflation is 8.302%.
  • Total DJIA Return (Dividends Reinvested) for the last 10 years adjusted for inflation is 180.419%.
  • Annualized DJIA Return (Dividends Reinvested) for the last 10 years adjusted for inflation is 10.862%

What is Dow Jones’s average return last 20 years?

  • The total Dow Jones Industrial Average Return for the last 20 years adjusted for inflation is 109.782%.
  • Annualized Dow Jones Industrial Average Return for the last 20 years adjusted for inflation is 3.774%.
  • Total DJIA Return (Dividends Reinvested) for the last 20 years adjusted for inflation is 238.185%.
  • Annualized DJIA Return (Dividends Reinvested) for the last 20 years adjusted for inflation is 6.282%

What is Dow Jones’s average return last 30 years?

  • The total Dow Jones Industrial Average Return for the last 30 years adjusted for inflation is 454.899%.
  • Annualized Dow Jones Industrial Average Return for the last 30 years adjusted for inflation is 5.878%.
  • Total DJIA Return (Dividends Reinvested) for the last 30 years adjusted for inflation is 1027.519%.
  • Annualized DJIA Return (Dividends Reinvested) for the last 30 years adjusted for inflation is 8.410%

 

Dow Jones historical data in Excel

Please download Dow Jones history 10 years data
Please download Dow Jones 100 years historical data

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Dow Jones market capitalization

Market capitalization or market cap is the total market value of the company’s outstanding shares. To calculate a company’s market capitalization, you need to multiply the current stock price by the total number of shares. Dow Jones market capitalization in 2020 was around 8.94 trillion dollars.

Stocks having better value are the ones that carry greater weight as far as the overall index is concerned. Earlier, the average was calculated by dividing the price of 12 stocks after summing up the stock prices on a particular day. This has gone through many changes over time, and it may have happened because of many reasons. Stock splits, mergers and acquisitions may have led to these changes over time.

Dow Jones components

Dow Jones components represent 30 stocks that are price-weighted. The Dow 30 or DIJA index is calculated using a divisor to normalize the index components.

Dow Jones components are the following 30 companies:

CompanySymbolIndustryDate addedIndex weighting
UnitedHealth GroupUNHManaged health care9/24/20127.12%
Goldman SachsGSFinancial services9/20/20136.97%
The Home DepotHDRetailing11/1/19995.42%
BoeingBAAerospace and defense3/12/19875.00%
MicrosoftMSFTInformation technology11/1/19994.73%
AmgenAMGNPharmaceutical industry8/31/20204.68%
Visa Inc.VFinancial services9/20/20134.55%
Caterpillar Inc.CATConstruction and Mining5/6/19914.50%
HoneywellHONConglomerate8/31/20204.34%
McDonald'sMCDFood industry10/30/19854.34%
SalesforceCRMInformation technology8/31/20204.32%
The Walt Disney CompanyDISBroadcasting and entertainment5/6/19913.97%
3M CompanyMMMConglomerate8/9/19763.76%
Johnson & JohnsonJNJPharmaceutical industry3/17/19973.24%
JPMorgan ChaseJPMFinancial services5/6/19913.16%
The Travelers CompaniesTRVFinancial services6/8/20093.16%
American ExpressAXPFinancial services8/30/19822.99%
NikeNKEApparel9/20/20132.80%
WalmartWMTRetailing3/17/19972.69%
IBMIBMInformation technology6/29/19792.60%
Procter & GamblePGFast-moving consumer goods5/26/19322.59%
Apple Inc.AAPLInformation technology3/19/20152.44%
Chevron CorporationCVXPetroleum industry2/19/20082.27%
Merck & Co.MRKPharmaceutical industry6/29/19791.52%
Dow Inc.DOWChemical industry4/2/20191.31%
IntelINTCInformation technology11/1/19991.27%
VerizonVZTelecommunication4/8/20041.16%
The Coca-Cola CompanyKOFood industry3/12/19871.05%
Walgreens Boots AllianceWBARetailing6/26/20181.03%
Cisco SystemsCSCOInformation technology6/8/20090.98%

The index has to be often re-valued to accommodate new entrants and, after taking into account, firms or companies that may have been forced to move out for various reasons. The number of companies moved to 30 way back in 1928. However, what is pertinent to mention here is that the Dow Index composition has changed around 60 times since 1928. The first change happened about three months after the component index of 30 was created. The Great Depression saw many changes to its overall components. One of the most significant changes perhaps happened in 1932, when eight out of thirty stocks in the DOW had to be replaced.

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There have been many changes to the composition of the Dow over the past 125 years or so. One of the most significant changes happened in 1997 when Bethlehem Steel, Texaco, Woolworths, and Westinghouse Electric were replaced by Johnson & Johnson, Hewlett-Packard, and Travelers Group Wal-Mart.

In 1999 some more changes happened when Union Carbide, Chevron, Sears Roebuck, and Goodyear Tire were shown the door, and in their places, Intel, Home Depot, SBC Communications, and Microsoft were added. Many other changes to the composition of the 30 happened in 2018 and 2020. Therefore, such changes are part and parcel of the journey of DJIA, and most certainly, many more changes to the composition will happen over the years.

What are 30 stocks in the Dow Jones?

Dow Jones companies list is:

  • 3M Company
  • American Express
  • Amgen
  • Apple Inc.
  • Boeing
  • Caterpillar Inc.
  • Chevron Corporation
  • Cisco Systems
  • Dow Inc.
  • Goldman Sachs
  • Honeywell
  • IBM
  • Intel
  • Johnson & Johnson
  • JPMorgan Chase
  • McDonald’s
  • Merck & Co.
  • Microsoft
  • Nike
  • Procter & Gamble
  • Salesforce
  • The Coca-Cola Company
  • The Home Depot
  • The Travelers Companies
  • The Walt Disney Company
  • UnitedHealth Group
  • Verizon
  • Visa Inc.
  • Walgreens Boots Alliance
  • Walmart

 

How is the Dow Jones calculated?

Dow Jones index value represents the sum of all 30 stocks’ prices divided by a Dow divisor. Dow Jones index calculation is based on price-averaged calculation and determining Dow divisor. The Dow divisor is a figure used to normalize the Dow Jones Industrial Average value, and it is regularly updated to ensure that structural changes to the market.

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Over a while, a new concept known as Dow Divisor was used as a constant for calculating the DJIA index. The constant was predetermined and helped determine the impact of a single point move as far as the 30 stocks are concerned. However, there are situations and times where the divisor had to be changed to ensure that the overall value of the DOW remained consistent. The divisor, of course, keeps change, and you find it out by referring to various sources of information. The WSJ or the Wall Street Journal gives the interested stakeholders the latest divisor.

Not many people may know that the DOW index is not calculated using the WAA or the Weighted Arithmetic Average. Therefore it may not be an accurate reflection of the overall market capitalization of the various components of DJIA. However, this is not the case with other indexes like S&P 500 and others. The Dow Index is the total share of stocks’ price movement as far as all the components are concerned after being divided by the divisor number mentioned above. In a practical situation, if there is a single point movement in any single stocks that make up the 30 total numbers, this will move the index by the same number of points.

Is Amazon in Dow Jones?

No, Amazon company is not in the Dow Jones index. Amazon needs to split its shares by 10-to-1 or more to reduce them to a level at which Dow Jones can consider this company. Dow index can not accept share that is more than $3000 such as Amazon. Amazon didn’t split its stock since 1999. This is the biggest problem for the Dow Jones index because some big and excellent companies are not listed. In 2020, the Dow rose just 7.3%, while the Nasdaq gained 24%, and the S&P 16%.

What’s the difference between the Dow Jones and the NASDAQ?
Dow Jones Industrial Average consists of 30 major companies traded on the NYSE, while the NASDAQ index has more than 3000 companies. Dow index is based on average price calculation where the stock split is not considered. In contrast, NASDAQ is based on the average Market capitalization (Price * Outstanding shares) of the companies index. The NASDAQ stock market depends largely on the technology sector’s performance, while Dow’s performance is focused on the 30 major companies as a group and not as individual stocks.

Conclusion

To conclude, some critics strongly believe that a stocks’ price may not be the right way to reflect a company’s overall performance that belongs to the list of the 30. Market cap is perhaps a more accurate way of looking at the strength and possible weaknesses of companies.

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Fxigor
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Fxigor

Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on: igor@forex.in.rs

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