Salesforce, Amgen, and Honeywell Are Being Added to the Dow Jones Index: Are They Buys?
The Dow Jones Industrial Average -- the iconic 30-company stock average that is the oldest index still in use today -- is getting an adjustment. In a recent note, the division of S&P Global (NYSE: SPGI) responsible for the index composition said Salesforce (NYSE: CRM) is replacing ExxonMobil (NYSE: XOM), Amgen (NASDAQ: AMGN) is replacing Pfizer (NYSE: PFE), and Honeywell (NYSE: HON) is replacing Raytheon Technologies (NYSE: RTX), effective August 31.
The stock index constituent swap-outs were prompted by Apple's recently announced 4-for-1 stock split, since the Dow Jones Average is a stock price-weighted index (versus a company market cap weighted index like the S&P 500). But S&P Dow Jones also said the move better reflects the current state of the U.S. economy. That said, here's what investors should consider regarding Salesforce, Amgen, and Honeywell before buying their respective stocks.
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Source Fool.com
