S&P Dow Jones Indices announced Alphabet will join the Dow on June 29, ousting Verizon due to its low share price impact.
Alphabet will replace Verizon Communications in the Dow Jones Industrial Average before trading opens on June 29. The change follows S&P Dow Jones Indices’ decision, citing Verizon’s low share price of around $45 as a misfit for the price-weighted index.
Verizon’s $45 share price accounted for just 0.5% of the Dow’s total weight, making its impact immaterial. The Dow’s price-weighted structure means lower-priced stocks exert minimal influence, regardless of market capitalization. This marks the first index adjustment since November 2024.
Alphabet’s stock rose about 1% to $350 on the announcement, while Verizon fell roughly 2% to $45. Honeywell Technologies remains in the index, though its aerospace spin-off will not join.