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The iconic Dow Jones Industrial Average has evolved from an scale dominated by concern stocks successful the precocious 1800s to 1 that's present composed of 30 diverse, multinational, and time-tested companies.
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Everything from Verizon's stock terms to its minimal maturation complaint points to it being shown the doorway by S&P Dow Jones Indices.
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Verizon's apt replacement strikes the cleanable equilibrium betwixt tech and communications, with a virtual monopoly thrown successful the mix.
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On May 26, 2026, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) volition observe its 130th day since its authoritative inception.
When it was initially formed, the Dow was an scale dominated by 1 twelve concern stocks. But implicit the past period and change, it's evolved into an encompassing scale composed of 30 diverse, multinational, and time-tested companies.
But these components aren't static. Since the Dow Jones Industrial Average is simply a stock price-weighted index, companies that underperform implicit agelong periods, oregon those that suffer relevancy, either wrong the scale oregon U.S. economy, are yet removed and replaced.
The scale has undergone astir 5 twelve changes since 1896, a mates of which are recognized arsenic thing much than authoritative institution sanction changes oregon a nationalist institution merging with an existing Dow component. Most of these adjustments impact laggards being booted from the Dow successful favour of companies with amended semipermanent maturation prospects that are much typical of the U.S. economy.
In 2026, I judge we'll witnesser the 60th alteration successful the Dow Jones Industrial Average successful 130 years, with telecom titan Verizon Communications (NYSE: VZ) getting the unceremonious heave-ho and a trillion-dollar juggernaut replacing it.
Verizon archetypal entered the ageless Dow Jones Industrial Average successful April 2004, replacing its superior rival, AT&T. The proliferation of wireless cellular service, coupled with cellphones becoming thing of a basal necessity that consumers and businesses were unwilling to unrecorded without, offered a compelling semipermanent maturation story.
But respective issues powerfully suggest Verizon is simply a campaigner to beryllium shown the doorway successful 2026.
To statesman with, Verizon banal ended the Jan. 21 trading league astatine conscionable $39.24 per share. Whereas the S&P 500 and Nasdaq Composite are market-cap-weighted indexes, Dow points are determined wholly by stock terms and the Dow divisor. In different words, the higher a company's nominal stock price, the much power it has wrong the Dow.

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