Dow announces 453rd consecutive dividend

NEW YORK - Dow Inc. (NYSE: NYSE:DOW), a leading materials science company, has announced a quarterly dividend of 70 cents per share, which will be payable on December 13, 2024, to shareholders of record as of November 29, 2024. This dividend payment continues Dow's long-standing tradition of rewarding shareholders, marking the 453rd consecutive dividend issued since 1912.

Dow, recognized globally for its innovative and sustainable approach to materials science, operates in various high-growth sectors including packaging, infrastructure, and consumer applications. With manufacturing sites across 31 countries and a workforce of approximately 35,900 employees, Dow's extensive operations contributed to sales of about $45 billion in 2023.

The company's focus on innovation, customer-centricity, inclusivity, and sustainability has been central to its strategy for achieving profitable growth and delivering solutions for a sustainable future. Dow's commitment to these values is a cornerstone of its ambition to be the most innovative and sustainable materials science company in the world.

Investors and stakeholders have noted Dow's consistent dividend payments as a sign of the company's financial health and management's confidence in its business model and future prospects. The declaration of this dividend is based on a press release statement issued by Dow and reflects the company's ongoing financial performance and strategic initiatives.

While Dow's forward-looking statements in the press release provide insights into the company's expectations for future business and financial performance, they are subject to a range of risks and uncertainties beyond the company's control. These include market conditions, economic impacts of public health events, geopolitical conflicts, supply chain disruptions, and other factors that could materially affect the company's actual results.

The information reported here is based solely on the facts presented in the press release statement by Dow, without speculation or endorsement of the company's claims.

In other recent news, the U.S. Energy Department has announced its plan to invest $3 billion in the battery manufacturing sector, with companies such as Albemarle (NYSE:ALB), Honeywell (NASDAQ:HON), and Dow among the recipients. This investment aims to reduce dependency on China for battery production and critical minerals, and is anticipated to generate $16 billion for the projects and create approximately 12,000 jobs. On the earnings front, Dow Inc. has revised its third-quarter revenue forecast to approximately $10.6 billion, and operating EBITDA to around $1.3 billion, due to an unplanned incident at a Texas facility and economic pressures in Europe. This revised forecast has led Citi, RBC Capital, and BMO Capital Markets to adjust their price targets for Dow. These recent developments underscore the ongoing efforts to bolster domestic production and the impact of operational disruptions on companies' financial performance.

InvestingPro Insights

Dow Inc.'s recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company currently offers a substantial dividend yield of 5.24%, underscoring its commitment to rewarding investors. This high yield is particularly noteworthy in the current market environment and supports the company's reputation for consistent dividend payments since 1912.

InvestingPro Tips reveal that Dow has been aggressively buying back shares, further demonstrating its focus on enhancing shareholder value. This strategy, combined with the dividend policy, reflects management's confidence in the company's financial position and future prospects.

Despite facing challenges such as revenue decline (-12.62% over the last twelve months) and weak gross profit margins, Dow maintains a strong market position with a market capitalization of $37.58 billion. The company's ability to sustain its dividend payments in the face of these headwinds speaks to its financial resilience and long-term strategic planning.

It's worth noting that while Dow's P/E ratio stands at 33.1, which might seem high at first glance, the adjusted P/E ratio for the last twelve months is a more modest 22.15. This suggests that the market still sees value in Dow's stock, despite the current economic uncertainties affecting the chemicals industry.

For investors seeking a deeper understanding of Dow's financial health and future prospects, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available for Dow, providing a comprehensive analysis of the company's strengths and potential risks.

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