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7 Former Dow Jones Stocks That Survived "The Boot"

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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 decision – and you don’t have to go too far back in time to find these comeback kids.

SEE ALSO: The 50 Best Stocks of All Time

Data is as of July 25, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price.


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