Kiplinger

7 Former Dow Jones Stocks That Survived "The Boot"

Once-great industrial giant General Electric (GE) was removed as a constituent of the Dow Jones Industrial Average in June 2018. Although GE was a component of the blue-chip index for 110 years, time finally caught up with it. The company never really made a full foray into the tech-centric modern era of manufacturing, and it lost ground as it lost relevancy.

That kind of decision can be tough on a stock. Not only does an army of index fund managers sell the stock to reconfigure their Dow-based investment pools, but the loss of an accolade such as being a Dow constituent can crimp investors' perception of that company.

But Dow stocks getting the boot, while headline-worthy, isn't unusual. On average, a Dow Jones component is replaced about once per year. And contrary to popular belief, it doesn't have to serve as a kiss of death for a stock.

In fact, often times a stock performs very poorly before being removed from the Dow Jones Industrial Average ... then is kicked out right before a major turnaround.

Here are seven former Dow Jones stocks that more than survived being removed from the industrial average. In each case, they thrived despite the

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger3 min read
Social Security Is Pushing You to Work Longer – Can You Still Afford to Retire Early?
Are you thinking of retiring soon?  Perhaps earlier than you had planned years ago?  A potential hurdle could be the incentives set up by the Social Security Administration – they calculate your benefits to reward you for staying in the workforce.  
Kiplinger5 min read
4 Steps for Managing Income Withdrawals in Retirement
If you’re like most Americans nearing retirement, you’re worried about whether you have enough savings. In fact, only 22% of those approaching retirement believe they’ve saved enough to retire comfortably. At a time when the stock market is down, inf
Kiplinger3 min read
I’ve Inherited a Lot of Money. Now What?
It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie

Related Books & Audiobooks