The Dow Jones Industrial Average is getting a new member — one with the perfect name.
Dow Inc., the century-old maker of plastics and packaging, will join the 30-stock index on April 2 when US stock markets open.
Fittingly, Dow Inc. will replace DowDuPont (DWDP), the chemicals conglomerate it’s getting spun off from next month.
To recap: Dow is replacing DowDuPont in the Dow. Got that?
It’s the first shakeup of the exclusive index since last summer when General Electric was kicked out. Walgreens Boots Alliance (WBA) replaced GE (GE), the struggling maker of jet engines and light bulbs and original member of the Dow in 1896.
S&P Dow Jones Indices, the publisher of the Dow, said the latest swap will allow the benchmark index to keep its exposure to the materials sector.
Dow Inc., based in Midland, Michigan, will join the index on the same day it’s scheduled to debut on the New York Stock Exchange as an independent company.
Getting listed in the Dow is a “nice recognition of our company’s leading position in our industry,” Howard Ungerleider, Dow’s chief financial officer, said in a statement.
DowDuPont was formed in 2017 by the marriage of Dow Chemical and DuPont. But last year the conglomerate announced plans to break up into three separate companies.
The materials sciences division will be called Dow Inc. and keep the iconic red diamond logo from Dow Chemical. The new company will also include DuPont’s materials business to form a plastics and packaging powerhouse. It generated $11.8 billion in sales during the fourth quarter.
DowDuPont is also spinning off its crop seed and pesticide businesses to form Corteva Agriscience. That agriculture company is scheduled to begin trading on June 1.
And the remaining company, called DuPont, will focus on specialties such as electronics, safety and nutrition.