Buy Verizon over Alphabet if a history of Dow changes is any guide

Verizon will lose its place in the Dow Jones Industrial Average , but if history is any guide this may not be bad news for the stock. On June 29, 2026, Google's parent company , Alphabet, will replace Verizon, ending the latter's 25-year run in the 130-year-old measure. The move means a greater exposure to artificial intelligence, cloud computing, and digital advertising. Yet, historical stock trends suggest that investors are sometimes better off buying the company leaving the Dow than the one entering it, a phenomenon commonly known as the " Curse of the Dow " or "Dow curse." Out of the last seven Dow changes since 2015, five of the exiled stocks outperformed the shares they were replaced by in the measure 12 months out. Most outperformed by quite large margins as well. Although informal, what the curse really means is that after a new company is added to the list of blue-chip stocks that make up the Dow Industrial Average, the added company's stock begins to significantly underperform compared to the months before inclusion. Verizon shares are up just 7.5% the last 12 months, while Alphabet shares have doubled. The Dow is up more than 20% over the same period. Companies added to the index often reflect stronger valuations and established growth, which could leave them more vulnerable to weaker returns after they finally get the nod to join the famed stock portfolio. …