Gerald Phillips
Alphabet will join the Dow Jones Industrial Average on June 29, 2026, replacing Verizon Communications in a reshuffle that brings the Google parent into one of Wall Street's most closely watched benchmarks for the first time. The move takes effect before the opening bell that morning.
At a Glance
- Alphabet (GOOGL) replaces Verizon in the DJIA, effective June 29, 2026
- Verizon held a negligible weighting of roughly half a percentage point due to its low share price
- Alphabet trades near $350; Verizon near $47, a gap that matters in a price weighted index
- All five of the largest US tech companies by market cap will now sit in the Dow
- Honeywell International will also restructure on June 29, spinning off its aerospace division
Why Alphabet and Why Now
S&P Dow Jones Indices, which manages the 30 stock benchmark, said Alphabet's scale, share price and breadth of operations make it a better representative of the Communication Services sector than Verizon. The index manager pointed to Alphabet's reach across advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology and media distribution as reasons the swap strengthens the index.
The price weighting mechanic is central to the decision. Unlike market cap weighted indexes, the Dow assigns influence based on each component's nominal share price. With Verizon trading around $47, the telecom carrier carried only about 0.5% of the index's total weight, meaning its daily moves barely registered. Alphabet's roughly $350 share price will give it far more influence from day one.
The DJIA's Biggest Reshuffle in Over a Year
The last time the Dow swapped components was November 2024, when Nvidia and Sherwin-Williams entered the index at the expense of Dow Inc. and Intel. That means this June 29 change is the first reshuffle since then, a stretch of roughly seven months.
With Alphabet joining, all five of the largest US technology companies by market capitalization, Nvidia, Amazon, Apple, Microsoft and now Alphabet, will hold seats in the 30 stock index. Alphabet's stock climbed about 1% in after hours trading immediately after S&P Dow Jones Indices published the announcement.
Honeywell Splits in Two on the Same Date
A separate event tied to an existing Dow member also lands on June 29. Honeywell International is completing the spin off of its aerospace division that day. Once the separation is done, the parent company will be renamed Honeywell Technologies and will remain in the index. The newly independent Honeywell Aerospace will not earn a spot among the 30 components, S&P Dow Jones Indices confirmed.
To keep the benchmark's level from distorting when prices and components shift, the index divisor used in the Dow's calculation will be adjusted before trading opens on June 29.
Frequently Asked Questions
What date does Alphabet officially join the Dow?
Alphabet enters the Dow Jones Industrial Average before trading opens on June 29, 2026, replacing Verizon Communications on that date.
Why does share price matter so much in the Dow?
The Dow is price weighted rather than market cap weighted, so a stock's nominal price determines how much its daily moves affect the index. A stock trading at $47 contributes far less than one trading at $350, regardless of the company's total market value.
Will Honeywell Aerospace be in the Dow after the spin off?
No. Honeywell Aerospace will become an independent company on June 29, 2026, but S&P Dow Jones Indices has confirmed it will not be added to the 30 component index. The renamed Honeywell Technologies will continue as a Dow member.
Which major tech companies are now in the Dow?
Once Alphabet joins, all five of the largest US tech companies by market cap, Nvidia, Amazon, Apple, Microsoft and Alphabet, will be represented in the index.
What the Change Signals for the Dow's Composition
Index managers periodically update the Dow to keep it reflective of the broader economy, and this swap underscores how much the index's center of gravity has shifted toward technology and AI driven businesses. Verizon's exit is less a verdict on the company than a straightforward consequence of how a price weighted benchmark works. A carrier trading in the mid $40s was always going to struggle to carry meaningful weight, no matter its revenue or subscriber count.
