The DJIA Crossed 652,230

Abstract

The DJIA, like most indexes, is a capital index. It excludes dividends. The DJIA was initiated in 1896 at 40.94 and reached 9,181.43 by the end of 1998. The authors show that a wealth DJIA, an index that accounts for reinvestment of dividends, would have reached 652,230.87 by the end of 1998. Adjusted for inflation, the wealth DJIA would have reached 31,469.30.