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.

New York, USA - July 29, 2016: The illuminated Dow Jones sign in times square late in the night as the latest news streams on the led board.
(Image credit: Getty Images)

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.

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

James Brumley
Contributing Writer, Kiplinger.com
James Brumley is a former stock broker, registered investment adviser and Director of Research for an options-focused newsletter. He's now primarily a freelance writer, tapping more than a decade's worth of broad experience to help investors get more out of the market. With a background in technical analysis as well as fundamental analysis, James touts stock-picking strategies that combine the importance of company performance with the power of stock-trade timing. He believes this dual approach is the only way an investor has a shot at consistently beating the market. James' work has appeared at several websites including Street Authority, Motley Fool, Kapitall and Investopedia. When not writing as a journalist, James works on his book explaining his multi-pronged approach to investing.