Verizon Faces Potential Removal from Dow Jones: Top Contenders for Replacement

Investors have seen significant changes in the Dow Jones since its inception, with Verizon’s low share price and poor stock performance making it a likely candidate for removal. Three high-priced, diverse businesses could replace Verizon in the index. The Dow, started in 1896, has evolved from 12 industrial stocks to 30 multinational companies, but still lags behind the S&P 500 in terms of coverage. Verizon’s share price and performance have not been influential in the Dow, leading to speculation of its removal. The Dow committee considers share price, performance, and industry representation, favoring companies that add value and represent key industries. Although Verizon offers essential services, it lacks innovation and market influence within the Dow. Verizon’s share price and performance have not contributed significantly to the Dow, making it a likely candidate for replacement. Alphabet, with its diverse industry presence, strong performance, and financial stability, is a top contender to replace Verizon in the Dow. Meta Platforms, known for its social media dominance and advertising revenue, is a strong candidate to replace Verizon in the Dow. T-Mobile, offering strong growth, outperforming legacy telecom providers, and representing the 5G revolution, could replace Verizon in the Dow. Verizon Communications may not be the best investment choice, as other stocks offer higher potential returns, according to the Motley Fool Stock Advisor team. Strong performers like Alphabet and Meta Platforms could be better alternatives for investment.

Read more at Nasdaq: Verizon’s Days as a Dow Jones Industrial Average Component May Be Numbered: Here Are 3 Logical Candidates to Replace It