Should Google Be Added to the Dow?

A provocative story from Reuters Monday ruminated on which companies are likely to replace Citigroup (C) and General Motors (GM) in the Dow Jones Industrial Average. Its conclusion: Google (GOOG) and Cisco (CSCO) are the most likely contenders, with Apple (AAPL) and Visa (V) having a less likely chance.

It’s a safe bet that those two troubled companies–trading below $2 a share–will get the boot, potentially along with Bank of America (BAC), which is trading below $4. All are plagued by concerns that bankruptcies or government takeovers would wipe out shareholders. Talk of a reshuffling of the Dow has been heating up of late.

Does Google belong in the Dow? I think it does for a few reasons. According to Dow Jones’ explanation of the indexes composition, “a stock typically is added only if it has an excellent reputation, demonstrates sustained growth, is of interest to a large number of investors and accurately represents the sector(s) covered by the average.”

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