Apple, the biggest US company by market value, will be included in the Dow Jones Industrial Average from 19 March.
It replaces AT&T, which first joined the US stock market barometer in 1916.
Despite being one of the most successful US firms, Apple was excluded from the Dow because its high stock price would have distorted the price-weighted index.
But a change in the structure of Visa shares, which is in the same sector, has made room for the iPhone maker.
From 18 March, Visa shares will be split four-for-one, which reduces the weighting of the information technology sector in the overall index.
"As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average," said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.
Apple's own seven-for-one stock split last June also helped pave the way for it to join the Dow Jones.
The Dow Jones Industrial Average is calculated by taking the sum of the share prices of its 30 stocks and dividing the total by a number known as the Dow Divisor.
The divisor is continually adjusted to accommodate structural changes to companies and to maintain continuity.
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