economy
Buy Verizon over Alphabet if a history of Dow changes is any guide
Verizon's removal from the Dow may not be bad news for investors. Historical data shows deleted stocks often outperform the companies replacing them
TL;DR
- Alphabet's parent company, Alphabet, will replace Verizon in the Dow Jones Industrial Average on June 29, 2026.
- Verizon's departure ends its 25-year tenure in the index.
- Historical data shows that companies removed from the Dow have often outperformed the companies that replaced them in the 12 months following the change.
- This phenomenon is commonly referred to as the 'Dow curse,' where newly added companies may underperform after inclusion.
- A recent example is Nvidia replacing Intel, where Intel has significantly outperformed Nvidia since the change.