The Dow Jones Industrial Average returned 6.87% in 2020. Using a better calculation, which includes dividend reinvestment, the Dow Jones returned 9.70%.
2020 Dow Jones Industrial Average Return: Reinvest Your Dividends
I ran the above calculation for an index purchase at open on January 2nd, 2020 and sold at close on December 31, 2020. This would match the year-to-date return if you looked on the last of the year.
Alternatively, you might like a one-year holding proxy. If you bought the closing price on December 31, 2019 and sold the close on December 31, 2020 the returns would be 7.25% – 9.72% with dividends reinvested.
Dow Jones 2020 Index Returns
| Price From | Price | Dec 31 Close | Gain/Loss |
| Jan 2 Open | 28638.97 | 30606.48 | 6.87% |
| Dec 31 Close | 28538.44 | 30606.48 | 7.25% |
Dow Jones 2020 Total Return Index Returns
| Price From | Price | Dec 31 Close | Gain/Loss |
| Jan 2 Open | 64517.44 | 70778.10 | 9.70% |
| Dec 31 Close | 64505.48 | 70778.10 | 9.72% |
The takeaway message? The exact date doesn't really matter. However, dividends matter.
You can see the effects of reinvesting over a single year – ~ 2.83%. And even if you didn't reinvest, you'd still have to do something with your dividends (or use the checks to start a fire to heat your house, I guess!).
Investing in the Dow Jones Price-Weighted Stock Index
Most stock indices nowadays are market capitalization weighted, (e.g., the 2020 S&P 500 Return). The Dow Jones Industrial Average is a price-weighted index, by contrast.
Price-weighted indices derive their actual trading prices by the trading price of the underlying company shares times some individual stock factor.
Price weighting is not a great indexing method. However, I'm not here to doubt its usefulness – in 1896, it was easier to track price changes than up-to-the-minute market capitalization. Also, it has historically tracked other indices pretty well... so Dow Jones got a ton right.
Source on the 2020 Dow Jones Industrial Average Return Calculations
Data is sourced from the Dow Jones Indices, owned by S&P Dow Jones Indices. There you'll find both the price index and total return index.
Want even more? DQYDJ has you covered – both investing content, and some Dow Jones specific posts:
- Dow Jones Industrial Average Dividend Reinvestment Calculator
Estimated Dow Jones performance and returns back to 1896. - Dow Jones Industrial Average Historical Return Calculator
Summary statistics on the Dow Jones over periods you choose.
See DJIA returns in other years:
- 2023 Dow Jones Industrial Average Return
- 2022 Dow Jones Industrial Average Return
- 2021 Dow Jones Industrial Average Return
- 2019 Dow Jones Industrial Average Return
- 2018 Dow Jones Industrial Average Return
- 2017 Dow Jones Industrial Average Return
- 2016 Dow Jones Industrial Average Return
- 2015 Dow Jones Industrial Average Return
- 2014 Dow Jones Industrial Average Return
How do you see the Dow Jones Industrial Average performing in 2021?
