Latest news with #DowInc
Yahoo
a day ago
- Business
- Yahoo
Dow Strengthens Dividend Prospects Following Major Legal Victory in Canada
Dow Inc. (NYSE:DOW) is one of the 10 best dividend stocks according to Jim Cramer. On June 11, 2025, Citi reaffirmed its Hold rating on the stock but has adjusted the price target from $29 to $30. A technician operating state of the art machines manufacturing specialized packaging materials. Headquartered in Michigan, Dow Inc. (NYSE:DOW) is one of the world's leading manufacturers and suppliers of chemicals, plastics, and sealants. The company's products and services are used in multiple sectors, including packaging, infrastructure, mobility, and consumer care. With manufacturing sites in 31 countries, the company is a heavy investor in R&D with a special focus on areas like energy efficiency, sustainable packaging, and mobility. Citi's Hold rating and the price target adjustment on the stock arrive after a Canadian court order ordered Nova Chemicals to pay Dow Inc. (NYSE:DOW) an additional amount of $1.2 billion in damages. The judgment, arrived on June 10, was in relation to losses incurred by the company from a jointly owned ethylene asset in Joffre, Alberta, Canada. The judgment translated positively among the market experts, particularly after a fall in stock price on June 2, 2025, following the sale of 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş. Dow Inc. (NYSE:DOW) offers a dividend yield of 9.29%, thereby attracting investors seeking high and consistent income. However, the payout ratio of over 700% signals caution when investing in the stock. While we acknowledge the potential of DOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Dow Strengthens Dividend Prospects Following Major Legal Victory in Canada
Dow Inc. (NYSE:DOW) is one of the 10 best dividend stocks according to Jim Cramer. On June 11, 2025, Citi reaffirmed its Hold rating on the stock but has adjusted the price target from $29 to $30. A technician operating state of the art machines manufacturing specialized packaging materials. Headquartered in Michigan, Dow Inc. (NYSE:DOW) is one of the world's leading manufacturers and suppliers of chemicals, plastics, and sealants. The company's products and services are used in multiple sectors, including packaging, infrastructure, mobility, and consumer care. With manufacturing sites in 31 countries, the company is a heavy investor in R&D with a special focus on areas like energy efficiency, sustainable packaging, and mobility. Citi's Hold rating and the price target adjustment on the stock arrive after a Canadian court order ordered Nova Chemicals to pay Dow Inc. (NYSE:DOW) an additional amount of $1.2 billion in damages. The judgment, arrived on June 10, was in relation to losses incurred by the company from a jointly owned ethylene asset in Joffre, Alberta, Canada. The judgment translated positively among the market experts, particularly after a fall in stock price on June 2, 2025, following the sale of 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş. Dow Inc. (NYSE:DOW) offers a dividend yield of 9.29%, thereby attracting investors seeking high and consistent income. However, the payout ratio of over 700% signals caution when investing in the stock. While we acknowledge the potential of DOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Business Insider
14-06-2025
- Business
- Business Insider
Dow Inc. files automatic mixed securities shelf
16:17 EDT Dow Inc. (DOW) files automatic mixed securities shelf Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
10-06-2025
- Business
- Yahoo
Why Dow Inc. (DOW) Outpaced the Stock Market Today
Dow Inc. (DOW) closed the most recent trading day at $29.39, moving +2.94% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.09%. Coming into today, shares of the materials science had lost 3.15% in the past month. In that same time, the Basic Materials sector gained 4.01%, while the S&P 500 gained 7.21%. Market participants will be closely following the financial results of Dow Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.39 billion, down 4.84% from the prior-year quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $41.71 billion. These totals would mark changes of -75.44% and -2.91%, respectively, from last year. Investors should also pay attention to any latest changes in analyst estimates for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 36.12% downward. Right now, Dow Inc. possesses a Zacks Rank of #4 (Sell). Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 68.22. Its industry sports an average Forward P/E of 14.38, so one might conclude that Dow Inc. is trading at a premium comparatively. Investors should also note that DOW has a PEG ratio of 7.8 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Chemical - Diversified industry currently had an average PEG ratio of 1.84 as of yesterday's close. The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
07-06-2025
- Business
- Yahoo
Meet the Only S&P 500 Stock That Yields Over 10%. Here's Why It Could Be Worth Buying in June.
Dow Inc. is under pressure due to weak customer demand, global competition, and high costs. Management doesn't want to cut the dividend, but it could be a good choice given cost pressures. Even if Dow cut its dividend in half, it would still have an excellent yield. 10 stocks we like better than Dow › Commodity chemical giant Dow Inc. (NYSE: DOW) is hovering around a five-year low and is now down around 50% from its spin-off price when DowDuPont split into three separate companies in April 2019. Dow has kept its dividend the same for the last six years. But since the stock has been beaten down so much, Dow's yield has jumped to a whopping 10.3% at the time of this writing -- making it the highest-yielding component in the S&P 500 (SNPINDEX: ^GSPC). Here's why Dow's challenges persist and why the dividend stock could be worth buying now, even if the company reduces its payout. Dow makes commodity chemicals -- mainly plastics and synthetic rubber. Dow has hundreds of products that are used either directly or indirectly across virtually every industry in the economy -- from electronics to food and beverage packing, textiles, construction, industrial applications, healthcare, cosmetics, household products like detergents and dish soaps, and more. Since these products are commodities, they lack pricing power. This is similar to the dynamic in oil and gas, where a gallon of unleaded gasoline sold at ExxonMobil is virtually the same as a gallon sold at Chevron. Consumers will largely make a purchase decision based on price, not brand. So Dow must achieve scale and operating leverage to ensure it can produce products at a competitive cost relative to its peers. Economic growth typically coincides with higher commodity chemical demand. But lately, two factors have been working against Dow. Demand is low across several end markets due to higher borrowing costs from elevated interest rates and slowing economic growth in key markets -- namely Europe. Another major challenge is competition. China has been ramping up investments in manufactured goods -- from chemicals to solar panels -- to take market share on the global stage. If China can produce chemicals sold by Dow for a cheaper price, it can undercut Dow on pricing. Dow is also working to become a more sustainable company by investing in plastic waste recycling and the world's first net-zero emissions integrated ethylene cracker -- known as its Path2Zero project in Alberta, Canada. However, on its first-quarter 2025 earnings call, Dow said that it is pausing Path2Zero to reduce its spending. Dow estimates that the pause will save the company $1 billion and reduce enterprise spending to $2.5 billion from $3.5 billion. Dow's latest quarter showed some signs of improvement, as it was the sixth consecutive quarter of year-over-year volume growth. But net sales still fell 3% due to a lack of pricing power -- which illustrates that demand is improving but competition is challenging. Dow's operating margin has gone from pre-pandemic levels around 8%, to 2022 highs in the mid-teens, to just 3.3% currently. As you can see in the chart, Dow's stock price is under pressure due to declining revenue and margins. The company's profit margin, which accounts for interest and taxes, is less than 1%. Dow is converting just $0.69 for every $100 in sales into profit -- which is unsustainable. It's also worth mentioning that Dow is free-cash-flow (FCF) negative, meaning that its operations can't support its dividend expense, so it has to rely on other means, such as debt. Since Dow isn't producing enough cash or earnings to cover its dividend, it can either sell assets, pull back on spending, take on more debt, cut the payout, or a blend of multiple ideas. As mentioned, Dow did pause its Path2Zero project, which could reduce its long-term earnings growth but will save on near-term expenses. On May 1, Dow completed the sale of a 40% equity stake in Diamond Infrastructure Solutions, which has infrastructure assets along the U.S. Gulf Coast. The sale netted Dow with $2.4 billion in initial cash proceeds, with the potential for $600 million more in proceeds if an option is exercised. Dow spent $494 million on dividends in its recent quarter, so the sale alone can cover the dividend expense for roughly five quarters. But selling assets or taking on debt to cover dividends is like plugging holes in a sinking ship. A preferred approach is to get the ship afloat -- or back to higher margins and consistent FCF -- so that operations can cover the dividend, and ideally, still have cash left over to pay down debt or buy back stock. In addition to savings from Path2Zero and the asset sale, Dow is also receiving around $1 billion in proceeds from a court settlement, and $1 billion in targeted cost savings by 2026, including $300 million in 2025. All told, Dow is on track to receive around $6 billion in additional cash or cost savings, most of which is coming this year. It's also worth mentioning that Dow has just $500 million in debt maturing in 2025 and no substantial debt maturities until 2027. So for now, its debt seems manageable. However, if Dow's margins remain depressed, it will have few choices but to cut the dividend. Dow's 10.3% yield is so high that the company could cut the payout by two-thirds and Dow would still yield 3.4% -- which is a solid source of passive income. When asked about the dividend on Dow's first-quarter earnings call, management responded that the cash and cost savings will help support the dividend, but that the situation is evolving and Dow will have to continue monitoring tariffs and macro factors. Dow may be a worthwhile turnaround play for investors who aren't banking on its dividend yield staying above 10%. If the company can use its cash proceeds wisely and continue managing its expenses, it could help weather the storm until economic conditions improve. However, it remains to be seen how Dow will hold up against the competition, even during a more normal operating environment. Dow has a long-term goal to have its dividend make up 45% of operating income. If Dow can get its operating margin back around the 8% to 9% range or if it cuts its dividend in half, it should be around that goal -- assuming it doesn't lose more pricing power. And if Dow can gradually improve its margins, the stock will begin to look dirt cheap. In sum, Dow has the cash and lack of debt obligations to afford its dividend in 2025. Going forward, I expect the company to cut its dividend at least in half or maybe by two-thirds if conditions don't improve, or it may decide to sustain the payout if there's a significant recovery in macro conditions. Risk-tolerant investors may want to scoop up shares of Dow now, with the stock at multiyear lows. In contrast, other investors may want to take a wait-and-see approach to Dow, as the next year will be pivotal in determining whether the company overcomes its present challenges or goes through with a dividend cut. Before you buy stock in Dow, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dow wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Meet the Only S&P 500 Stock That Yields Over 10%. Here's Why It Could Be Worth Buying in June. was originally published by The Motley Fool
