This change will have Walgreens take over GE’s place on the DJIA on June 26, which is next Tuesday. This will have WBA stock becoming the fourth consumer-staples company on the index. The others are Walmart (NYSE:WMT), Procter & Gamble (NYSE:PG) and Coca-Cola (NYSE:KO).
The change of adding WBA stock and removing GE stock from the DJIA also means that the index’s divisor will change. The index currently uses a divisor of 0.145233969, but will change it before it opens on June 26.
The last time that the divisor for the DJIA was changed was on Sept. 1, 2017. The reason for this change was the merger of DuPont and Dow Chemical. This resulted in the creation of a new company named DowDuPont (NYSE:DWDP).
The removal of General Electric from the DJIA also marks the end of an era for the index. GE was one of the original members of the DJIA when it launched back in 1896. It was also the last remaining original member of the group, reports MarketWatch.
“With its addition, the DJIA will be more representative of the consumer and health care sectors of the U.S. economy,” the DJIA said in a statement about WBA obtained by Fortune. “Today’s change to the DJIA will make the index a better measure of the economy and the stock market.”
WBA stock was up 4% while GE stock was down slightly as of Wednesday morning.
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As of this writing, William White did not hold a position in any of the aforementioned securities.