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
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