Alphabet Is the Dow's Newest Member. This One Has Been Raising Its Dividend Since Before Google Existed.

It's not often that components of the Dow Jones Industrial Average (DJIA) are shuffled, so when new companies appear, it's usually a much-discussed event. This was certainly the case in late June, when S&P Global announced that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) would be joining the index, replacing Verizon Communications.

But while the shake-up means a new name will be added to the Dow, it's worth noting the storied histories of some of the Dow's members. One stock, in fact, has been a Dow component for nearly a century -- and raising its dividend since before Google's co-founders Larry Page and Sergey Brin were born.

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How is Alphabet a blue chip of a different hue?

Unlike many constituents that have earned their stripes through decades of industry leadership and strong financial performance, Alphabet has been admitted to the Dow for reasons other than its performance.

S&P Global acknowledges Alphabet as a worthy Dow component, in part, for its diversified portfolio, which provides industry-leading digital services spanning numerous tech niches, including advertising, cloud infrastructure, and artificial intelligence (AI). Moreover, S&P Global states that including Alphabet "will broaden and strengthen the DJIA's exposure to these dynamic areas of the U.S. economy."

While it doesn't have a lengthy operating history to its credit, Alphabet's "larger market capitalization and share price, together with the breadth of its businesses, make it a more representative Communication Services constituent in the DJIA," in S&P Global's estimation.

This consumer goods stalwart is a regal dividend stock

Tracing its roots back to 1837, Procter & Gamble (NYSE: PG) is a name many people recognize for its numerous household products -- everything from baby care to personal grooming. Procter & Gamble's stock familiarity as a Dow constituent and as a dividend powerhouse, on the other hand, may be lesser known.

Procter & Gamble stock debuted in the Dow Jones in 1932, making it one of the longest-tenured Dow components. Perhaps even more impressive is its steadfast dedication to rewarding shareholders. A Dividend King (a company that has boosted its dividend for 50 consecutive years), Procter & Gamble stock has hiked its dividend for 70 years in a row -- a feat that few companies can lay claim to.

Unlike Alphabet, which is consistently developing innovative tech, Procter & Gamble operates a predictable, unexciting business, but that's just fine for passive-income investors. The steady revenue and earnings provide management with ample opportunities to return capital to shareholders while ensuring the company remains financially healthy. From 2016 through 2025, for example, Procter & Gamble has boosted its dividend at a compound annual growth rate of 5.1% -- a period during which the company averaged a conservative 75.7% payout ratio.

Using Alphabet to help spell out the health of U.S. economy

As Alphabet's presence in our daily lives grows increasingly prevalent, it's unsurprising that S&P Global elected to replace Verizon with Alphabet stock as a Dow component. While investors have a blue chip powerhouse with AI (and other cutting-edge tech) exposure in the Dow, it's worth taking time to also recognize the value of Procter & Gamble stock -- a long-tenured Dow member dedicated to increasing dividends. For those seeking portfolio diversification, both Alphabet and Procter & Gamble may be welcome additions to investors' holdings.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.