While the fate of General Motors (GM) as a company is being debated by legislators and others, investors would agree that GM will be removed from the
Dow Jones Industrial Average as the common stock faces the likely prospect of heading to zero despite efforts for a bailout of workers and suppliers. Some companies to consider as a replacement for GMK include:
Abbott Labs (ABT) is a consistent performer with diversified healthcare operations included pharmaceuticals, diagnostics, medical nutrition products, and medical devices/stents.
Over the past decade , ABT has consistently raised its dividend and posted a stock price gain of about 17% while the Dow is down 1% and the S&P 500 is down 19%.
Amgen (AMGN) would be an ideal candidate for the initial biotech component in the Dow since its larger rival Genentech (DNA) is majority-owned by Roche (RHHBY), which is looking to
buy the remaining stake it does not already own.
Apple (AAPL) has emerged as the technology bellwether and stock market leader, soaring over 900% in the past 10 years and its iPhone is outselling Motorola (MOT) and Research In Motion (RIMM) while its Mac and iPod brands continue to gain market share.
Cisco Systems (CSCO) is closely followed for its guidance on technology spending as the global leader in networking and internet infrastructure.
$17.38 (11/11/08)
