Dow 1,339,411
The Dow was launched on May 26, 1896 as a “price-only” index that does not capture (include) the dividend income of the underlying companies. According to finance professor Statman of Santa Clara University, with dividends reinvested along the way, from its May 1896 inception to March 2012, the Dow would have closed at 1,339,411 (not 13,000). This number is more than 100 times a closing price of 13,000.
The numbers become quite different when looked at from another perspective. Using a March 2012 closing price of 13,000 (meaning dividends have been excluded), if inflation is factored in, the Dow would have closed at 456 (> 96% below its value of 13,000). From the Dow’s 1896 inception to March 2012, if you factor in inflation and dividends, the close would have been 46,986.