The Dow 30 are companies such as The Home Depot, McDonald's, Nike, Walt Disney and Coca-Cola that are used to compute the Dow Jones Industrial Average, states Dividend.com. The Industrial Average is meant to serve as an indication to investors of how the overall market is performing.Continue Reading
Dow Jones includes 30 companies in its Industrial Average that it considers to be stable based on factors such as regular dividend payouts to shareholders, states Dividend.com. Dow Jones includes several types of companies in the Dow 30, such as financial companies Goldman Sachs, American Express, Visa, The Travelers Companies and JPMorgan Chase, and health care companies such as Johnson & Johnson, UnitedHealth Group and Merck and Pfizer, according to CNN. It also includes energy companies Chevron and Exxon Mobile, and manufacturers such as Caterpillar, General Electric and DuPont.
Dow Jones uses a price-weighted average that sometimes results in large swings in the overall Industrial Average when even one company in the Dow 30 experiences a large fluctuation in price or when several companies report during earnings periods, states Dividend.com. The 30 companies that contribute to the Dow Jones Industrial Average change over time and represent more sectors of the economy than when it was originally developed. General Electric is the only company remaining from the original Industrial Average, which included 12 companies in 1896.Learn more about Investing