Anticipation is building around a significant change in the Dow Jones Industrial Average. On May 26, 2026, the index will mark its 130th anniversary. Currently, only one of the five largest publicly traded companies by market capitalization is absent from the Dow: Verizon Communications.
Verizon’s Potential Exit from the Dow
Verizon, which entered the Dow in April 2004, faces the possibility of being replaced by a trillion-dollar company by 2026. Since its inclusion, Verizon’s stock growth has stagnated, increasing only 17% over nearly 22 years, excluding dividends.
Key Statistics on Verizon
- Current Share Price: $39.67
- Market Capitalization: $167 billion
- Dividend Yield: 6.92%
- 52-Week Price Range: $10.60 – $47.35
In comparison to other Dow components, Verizon’s share price is significantly lower than many of its peers. Its share price’s influence within the Dow is minimal, contributing only about 241 points to the index’s total of 49,077.
Identifying a Suitable Replacement
The S&P Dow Jones Indices, responsible for managing the Dow, is likely to consider a deserving successor with a substantial share price and robust market influence. The top contender for replacing Verizon is Alphabet Inc., the parent company of Google.
Alphabet’s Market Position
- Current Share Price: $332.04
- Market Capitalization: $4 trillion
- Dividend Yield: 0.25%
- 52-Week Price Range: $140.53 – $340.49
Alphabet boasts a diverse revenue model, generating 72.5% of its sales from advertising. Its Google Cloud platform also ranks third in global cloud infrastructure spending, reflecting the company’s strong growth potential. Additionally, Alphabet’s shares have experienced an impressive annual growth rate of over 25% since its IPO in 2004.
Conclusion
As the Dow approaches its anniversary, the expected shift is not just a change in components, but a move towards a more representative index of the modern economy. Verizon’s likely exit symbolizes a broader trend of adapting to evolving market dynamics, while Alphabet’s potential entry highlights the longevity of tech giants in the financial landscape.
