Does the Dow Jones Industrial Average Quote on any financial websited include dividends reinvested?

Answer 1

SWH is correct about the divisor but wrong about dividends. Dividends are included in the DJIA. Whenever a dividend is paid, the divisor is adjusted. This is equivalent to reinvesting this in the index.

Answer 2

No, dividends are not factored in, but stock splits are. The DOW quote on one website is the same as all others.

The Dow has a long history, so its not surprising that the calculation for the index is pretty technology-free. The method for calculating the Dow is as simple as adding up the stock prices of the 30 companies. Well, it's actually one step more complex than that.

If the original stocks in the index had never changed, or spun off divisions, or split their shares, it would be as simple as adding up the 30 stocks prices, but Dow had to account for the inevitable changes in the index. When a stock drops out at $95 a share and it's replaced by a stock at $25 a share, there's no reason for the index to drop as a result.

So Dow instituted a flexible divisor, which can be adjusted for each new index event (stock splits, etc.) in order to keep the value of the index before and after the special event identical. To calculate the DJIA value today, one adds the 30 stock prices and then divides by this floating factor, currently approximately 0.25.
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