The Dow Jones Industrial Average returned 13.70% in 2023. Using a better calculation including dividend reinvestment, the Dow Jones returned 16.18%.
2023 Dow Jones Industrial Average Return: Hold!
I ran the above calculation from open on January 3rd, 2023 and a sale at close on December 29, 2023. That is, of course, impossible to time perfectly – but it is suggestive of the excellent year we just saw in stock.
Hilariously, to the same significance, it's the same result if you run the numbers from December 30, 2021's close price instead (S&P does not report a different close price from the January 3 open). And either way, the index made up for its losses in 2022.
Dow Jones 2023 Index Returns
| Price Based On | 2023 Begin | Dec 29 Close | Return |
| Jan 3 Open | 33,148.90 | 37,689.54 | 13.70% |
| Dec 30 Close | 33,147.25 | 37,689.54 | 13.70% |
Dow Jones 2023 Total Return Index Returns
| Price Based On | 2023 Begin | Dec 29 Close | Return |
| Jan 3 Open | 79,728.48 | 92,630.25 | 16.18% |
| Dec 30 Close | 79,728.48 | 92,630.25 | 16.18% |
The Dow Jones tends to include mature companies which pay more of their earnings out in dividends. It's especially important to consider the efefct of those dividends – whether you reinvest them or not – in your performance, if you are a Dow investor.
Investing in the Dow Jones Price-Weighted Stock Index
The Dow Jones Industrial Average is a price-weighted index. Price-weighted indices derive their index value by taking the trading price of the underlying company shares times some "individual stock factor". Most stock indices nowadays are market capitalization weighted, (see the 2023 S&P 500 Return).
Price weighting is not as good an indexing method. However, it does track large cap companies well (at least outside many of the tech giants, this year). But usually, indices weighted by market capitalization is the superior methodology to track a basket of stocks.
Source on the 2023 Dow Jones Industrial Average Return Calculations
Dow Jones Indices is owned by S&P Dow Jones Indices. They run both the Dow Jones Total Return and Price Indices.
Historically, here on DQYDJ we have gone pretty far with our content – both in investing, and with some Dow Jones specific posts and tools:
- Dow Jones Industrial Average Dividend Reinvestment Calculator
Estimate 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:
- 2022 Dow Jones Industrial Average Return
- 2021 Dow Jones Industrial Average Return
- 2020 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
