The Dow Jones Industrial Average (DJIA) is likely the best-known stock market index among the general public. Since its inception in May 1896, the index has changed its components dozens of times. The first change occurred a mere three months after it was founded, and numerous companies have come and gone over the years. For instance, General Electric (GE) was removed in June 2018, and Exxon-Mobil (XOM), Pfizer (PFE), and RTX, formerly Raytheon Technologies, (RTX) were chopped in August 2020. Intel (INTC) and Dow Inc. (DOW) were removed from the index in November 2024.

But these aren't the only famous names to be dropped from the Dow Index. Other U.S. household names have gotten the boot over the decades—and more are sure to face the same fate in the future. None of the original companies on the index remain.

What Is the Dow Jones Industrial Average?

The Dow Jones Industrial Average, known simply as the DJIA or the Dow, is an index consisting only of large, 澳洲幸运5官方开奖结果体彩网:blue-chip companies that broadly represent the U.S. economy. It has historically included some of the most🗹 prominent and most influential com♈panies globally.

A company that loses a large percentage of its market capitalization because of financial distress might be removed from the Dow. 澳洲幸运5官方开奖结果体彩网:Market capitalization is a method of measuring the value of a company by multiplying the number of shares outstanding by its stock price. When companies lose enough market cap, they may be removed from the index, such as when AIG was💧 replaced b𒐪y Kraft Foods in 2008 amid the financial crisis.

As the economy changes over time, so does the composition of the index. A component of the Dow may be dropped when a company becomes less relevant to present trends of the economy, replaced by a new name that better reflects the shift.

Bethlehem Steel

Bethlehem Steel offers a great example of how economic changes over the decades can lead to changes in the DJIA. Bethlehem Steel was at one time the second-largest U.S. producer of steel. By the 1970s, cheaper imported foreign steel was beginning to take its toll on Bethlehem's top-line revenue. By the 1980s, the company began shutting down some of its operations to cut costs to remain profitable.

Due to its declining business, Bethlehem Steel was removed from the Dow in 1997 after a seven-decade run. The company declared bankruptcy in 2001, and its remaining assets were sold off in 2003. Those assets exist today as part of Mittal (MT).

General Electric

General Electric (GE) was one of the original Dow stocks when the index was created in 1896. However, GE has had a volatile history with the DJIA. It was removed from the Dow twice in the index's early days—it was dropped from🉐 the index in 1898 before it rejoined the Dow the following year in&nb🅘sp;1899.

After being dropped again in 1901, it returned to the Dow in 1907, where it was a mainstay for more than a century before being replaced in 2018. In fact, G𓃲E was the longest-running DJIA component, lasting 122 years.

Citigroup

The Travelers Companies joined the DJIA in 1997 as part of the biggest single update to the index, when four of the 30 components were changed. In 1998, Travelers merged with Citicorp, and the newly combined entity named Citigroup (C) inherited Travelers' spot in the Dow.

Citigroup was subsequently removed from the Dow following the 2008 澳洲幸运5官方开奖结果体彩网:financial crisis, when the company's market cap shrank by over 90% and it teetered on the brink of bankruptcy. Travelers (TRV) was spun off from Citigroup in 2002 and went on to replace Citigroup in the Dow ♏in 2009.

Sears

For decades, Sears Roebuck Co., which joined the Dow in 1924, was a household name across America and an enormous force in U.S. business and consumer culture. Its headquarters in downtown Chicago was the world's tallest building for a quarter century. Sears was eclipsed as the nation's largest retailer by Walmart Inc. (WMT) at the end 🌌of the 1980s. About a decade later, in 1999, Sears was removed from the DJIA following a 75-year run.

AT&T

As a sign of the changing times toward information technology and social media as the primary form of communication, the stalwart telephone company AT&T was replaced by Apple Inc. (AAPL) in 2015. Before that, AT&T had been a part of the Dow since 1916.

Pfizer

While Pfizer Inc. (PFE) may have seen a big boost due to its successful COVID-19 vaccines, the company was nevertheless dropped from the Dow in 2020. This was seen as a surprising move for many, but the index also hosts Merck & Company Inc. (MRK), which is a similar pharmaceutical company, and the index didn't need two.

Exxon-Mobil

The oil giant Exxon-Mobil was also removed from the Dow at the same time in 2020, ending its 92-year inclusion in the index (the second-longest consecutive run behind GE). The primary reason was due to overlap with other oil companies in the index (i.e., Chevron). The change accompanied a broader trend affecting the oil industry, exacerbated by falling oil prices and reduced demand, particularly during the COVID-19 pandemic. 

Walgreens-Boots

The pharmacy and retail chain Walgreens-Boots Alliance Inc. (WBA) was dropped from the index in early 2024, following a three-for-one stock split that lowered the company's price weighting below the required threshold. Walgreens has faced chalܫlenges in recent yea🌃rs, including declining sales and competition from both traditional and online retailers.

The decision underscored Walgreens' diminished influence relative to other companies that were then driving growth in the retail sector.

Intel

In November 2024, Intel Corporation (INTC) was dropped from the index, primarily due to its declining performance in the semiconductor industry and the rise of competitors like NVIDIA Corp. (NVDA), which replaced it in the Dow. Intel suffered a significant downturn, with its stock price falling by over 50% in 2024. The company reported continuous financial losses, including a projected loss exceeding $20 billion for that year, which raised concerns among investors and other stakeholders about its future viability as an industry leader.

The Bottom Line

The Dow Jones Industrial Average is a stock market index that tracks 30 large public companies in the U.S. The index, established in 1896, is one of the most widely tracked indexes in the world. As such, it is used as a 澳洲幸运5官方开奖结果体彩网:benchmark or a standard for performance measurement. The index's composition isn't static, which means companies may be removed and added to keep up with the pace of the U.S. economy.