Hewlett-Packard Company (HPQ), Kraft Foods Group Inc (KRFT): Is This Dow Jones Industrial Average (.DJI) Ticker One of the Best Stocks for Long-term Investors?

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Like Kraft Foods Group Inc (NASDAQ:KRFT) before it, a broken-up HP would almost certainly have to be replaced on the Dow. Neither Kraft nor its snack-food spinoff Mondelez International Inc (NASDAQ:MDLZ) has the monolithic heft that kept the old Kraft Foods Group Inc (NASDAQ:KRFT) on the Dow, nor the sustained growth that might have qualified one section to qualify on its own. Both stocks are doing fine after the split — Kraft Foods Group Inc (NASDAQ:KRFT) is up a market-beating 14.7%, while Mondelez International Inc (NASDAQ:MDLZ) has risen a modest 3.5% — but neither one makes a serious case for individual Dow Jones Industrial Average (INDEXDJX:.DJI) membership.

This is exactly the future I see coming for HP. By choice or by force, the company will likely break up in the next couple of years. When that happens, HP’s Dow days will be over. The enterprise half of HP just might stand a chance of membership on its own, but even that idea seems a stretch.

The article Is This Dow Ticker One of the Best Stocks for Long-term Investors? originally appeared on Fool.com is written by Anders Bylund.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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