Overview
- S&P Dow Jones Indices announced Tuesday that Alphabet’s Class A shares (GOOGL) will replace Verizon in the 30-stock Dow, with the change taking effect before trading opens on June 29, 2026.
- The Dow is price-weighted so Verizon’s low share price had reduced its influence to roughly 0.5 percent, while Alphabet’s higher share price gives it far greater sway in the index.
- Passive funds and ETFs that track the Dow must buy Alphabet and sell Verizon ahead of the effective date, and S&P DJI will adjust the Dow divisor before the market opens to prevent an artificial index jump.
- Alphabet’s stock moved modestly higher in after-hours trading following the announcement, a reaction shaped by the company’s heavy AI spending, recent financing and short-term share volatility.
- Honeywell will remain in the index as it spins off Honeywell Aerospace and rebrands the parent as Honeywell Technologies, and Alphabet’s addition further concentrates the Dow’s holdings in mega-cap technology names.