Alphabet Set to Join and Honeywell International to Remain in Dow Jones Industrial Average

Rhea-AI Summary

Verizon (NYSE:VZ) will be removed from the Dow Jones Industrial Average, to be replaced by Alphabet (NASD:GOOGL), effective before the market open on June 29, 2026.

According to S&P Dow Jones Indices, Verizon currently represents about 0.5% of the price-weighted index due to its lower share price.

Positive

• None.

Negative

• Verizon to be deleted from the Dow Jones Industrial Average on June 29, 2026

News Market Reaction – VZ

-2.25%

-2.25% Session close to close

In the Jun 24 session, VZ declined 2.25%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement removes Verizon from the DJIA in favor of Alphabet while highlighting Verizon’s re...

Analysis

This announcement removes Verizon from the DJIA in favor of Alphabet while highlighting Verizon’s relatively small index weight. Investors may watch how index-related flows, existing shelf flexibility, and low short interest interact with future company-specific news.

Key Figures

DJIA weight for Verizon: one-half of one percentage point Effective date: June 29, 2026 New divisor date: June 29, 2026 +1 more

4 metrics

DJIA weight for Verizon one-half of one percentage point Stated share of Dow Jones Industrial Average prior to replacement

Effective date June 29, 2026 Alphabet added to DJIA, Verizon deleted; Honeywell spin-off completion

New divisor date June 29, 2026 Index divisor changed before open to avoid distortion in DJIA calculation

Divisor availability date June 26, 2026 New DJIA divisor available in end-of-day index level files (*.SDL)

Historical Context

5 past events · Latest: Jun 17 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 17	Debt exchange results	Neutral	-1.9%	Final results of private exchange offers and consent solicitations for 11 note series.
Jun 17	Tender offer results	Neutral	-1.9%	Final results of cash tender offers and consent solicitations for 20 note series.
Jun 16	Network preparedness	Neutral	-1.9%	Storm preparedness update highlighting backup power, mobile assets and satellite fleet.
Jun 16	Customer program launch	Positive	-0.7%	Launch of loyalty program, new Simplicity plan and Verizon One bundled offer.
Jun 08	Area code update	Neutral	+0.0%	Announcement of new 465 area code overlay for New York regions served.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Verizon headlines, including financing actions and customer initiatives, have tended to see mildly negative next-day price moves.

Key Terms

dow jones industrial average, price weighted index, market capitalization, global industry classification standard, +1 more

5 terms

dow jones industrial average financial

"Alphabet Inc. (NASD:GOOGL) will replace Verizon Communications Inc. (NYSE:VZ) in the Dow Jones Industrial Average (DJIA)"

A stock market index that tracks the share prices of a small group of large, well-known companies to give a quick snapshot of how the broader market is doing. Think of it like a thermometer for the stock market: it uses a handful of heavyweight firms as representative samples to show whether investor sentiment is rising or falling, which helps investors gauge market trends and compare performance over time.

View in glossary

price weighted index financial

"The Dow Jones Industrial Average is a price weighted index, and thus persistently lower-priced stocks have an immaterial impact"

A price-weighted index is a stock market measure where each component’s influence is based only on its share price, so higher-priced stocks move the index more than lower-priced ones regardless of company size. Think of it like averaging test scores where a single high-score question counts more than many low-score questions; this can make the index swing with changes in a few pricey stocks and matters to investors because it affects how representative the index is and how related funds or derivatives will perform.

market capitalization financial

"Its larger market capitalization and share price, together with the breadth of its businesses"

Market capitalization is the total market value of a company’s outstanding shares, calculated by multiplying the current share price by the number of shares issued. It gives a quick snapshot of a company’s size and how investors value it, influencing perceived risk, index membership, and roughly how much it might cost to buy the whole company — like using a sticker price to compare the relative size and price of different houses.

View in glossary

global industry classification standard financial

"GICS (Global Industry Classification Standard) Industry"

A standardized system that groups companies into sectors and industries so investors can compare similar businesses the way a library organizes books by subject. It matters because it makes it easier to track performance, build diversified portfolios, and compare funds or stocks that operate in the same economic area; using a common classification helps ensure apples-to-apples comparisons and clearer investment decisions.

divisor financial

"The divisor used to calculate the index from the components' prices on their respective home exchanges will be changed"

A divisor is a single number used to adjust a stock market index’s calculation so the index stays continuous when events like stock splits, dividends, or company additions change the raw share totals. Think of it like recalibrating a scale after changing its weights: the divisor prevents mechanical changes from looking like real market moves, which helps investors and index funds compare performance over time and value index-linked products accurately.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, June 23, 2026 /PRNewswire/ -- Alphabet Inc. (NASD:GOOGL) will replace Verizon Communications Inc. (NYSE:VZ) in the Dow Jones Industrial Average (DJIA) effective prior to the opening of trading on Monday, June 29, 2026. Dow Jones Industrial Average constituent Honeywell International Inc. (NASD:HON) is spinning off Honeywell Aerospace Inc. (NASD:HONA) in a transaction expected to be completed on June 29. Post spin-off, the Honeywell parent will remain in the DJIA under the new name Honeywell Technologies Inc. Honeywell Aerospace will not be included in the DJIA. Verizon represents only one-half of one percentage point of the DJIA due to its lower share price. The Dow Jones Industrial Average is a price weighted index, and thus persistently lower-priced stocks have an immaterial impact on the index.

Alphabet's diversified technology and digital services portfolio spans advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology, and media distribution. Adding Alphabet will broaden and strengthen the DJIA's exposure to these dynamic areas of the U.S. economy. Its larger market capitalization and share price, together with the breadth of its businesses, make it a more representative Communication Services constituent in the DJIA.

The divisor used to calculate the index from the components' prices on their respective home exchanges will be changed prior to the opening on June 29, 2026. This procedure prevents any distortion in the index's reflection of the portion of the U.S. stock market it is designed to measure. The new divisor can be found in the end-of-day index level files (*.SDL) via the S&P Dow Jones Indices FTP (EDX) site beginning on Friday, June 26, 2026.

Following is a summary of the change that will take place prior to the open of trading on the effective date:

Effective Date	Index Name	Action	Company Name	Ticker	GICS (Global Industry Classification Standard) Industry
June 29, 2026	DJIA	Addition	Alphabet	GOOGL	Interactive Media & Services
June 29, 2026	DJIA	Deletion	Verizon Communications	VZ	Diversified Telecommunication Services

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.

FOR MORE INFORMATION:

S&P Dow Jones Indices
index_services@spglobal.com

Media Inquiries
spdji.comms@spglobal.com

View original content:https://www.prnewswire.com/news-releases/alphabet-set-to-join-and-honeywell-international-to-remain-in-dow-jones-industrial-average-302808382.html

SOURCE S&P Dow Jones Indices

FAQ

When will Verizon (VZ) be removed from the Dow Jones Industrial Average?

Verizon will be removed from the Dow Jones Industrial Average before trading opens on June 29, 2026. According to S&P Dow Jones Indices, Alphabet will simultaneously be added as a new DJIA component on that effective date.

Which company is replacing Verizon (VZ) in the Dow Jones Industrial Average?

Alphabet (GOOGL) will replace Verizon in the Dow Jones Industrial Average on June 29, 2026. According to S&P Dow Jones Indices, Alphabet is viewed as a more representative Communication Services constituent for the price-weighted index.

Why is Verizon’s (VZ) weight in the Dow Jones Industrial Average small?

Verizon’s weight in the Dow Jones Industrial Average is about 0.5% because of its lower share price. According to S&P Dow Jones Indices, the DJIA is price weighted, so lower-priced stocks have a smaller impact on index performance.

How does Verizon’s (VZ) removal affect the Dow Jones Industrial Average calculation?

The Dow’s divisor will be adjusted when Verizon is removed and Alphabet is added. According to S&P Dow Jones Indices, this divisor change prevents distortion in how the index reflects the U.S. stock market segment it measures.

What sector classifications apply to Verizon (VZ) and Alphabet (GOOGL) in the Dow change?

Verizon is classified under GICS Diversified Telecommunication Services, while Alphabet is in Interactive Media & Services. According to S&P Dow Jones Indices, adding Alphabet broadens the DJIA’s exposure to key technology and digital services areas.