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MIDLAND, Mich. - Dow Inc. (NYSE:DOW) announced Thursday that its Board of Directors has declared a quarterly dividend of 35 cents per share, representing a 50% reduction from its previous payout level. According to InvestingPro data, this adjustment comes as the company maintains a significant debt burden with a debt-to-equity ratio of 1.07, despite previously offering a high 9.22% dividend yield.
The chemical manufacturer cited a "persistently challenging macroeconomic environment" and a "prolonged industry downturn" as key factors behind the decision to adjust its dividend.
"Today’s announcement aims to ensure we maximize long-term shareholder value as we navigate a prolonged industry downturn and the resulting lower-for-longer earnings environment," said Jim Fitterling, Dow chair and CEO, in a statement.
The company emphasized that the dividend adjustment is designed to provide additional financial flexibility while maintaining what it describes as a "competitive dividend" across economic cycles. Dow indicated the move would allow it to "prioritize the highest return-generating opportunities" during the current challenging period.
The reduced dividend will be payable on September 12, 2025, to shareholders of record on August 29, 2025. Despite the reduction, Dow noted this marks the 456th consecutive dividend paid by the company or its affiliates since 1912.
Dow, which reported sales of approximately $43 billion in 2024, operates manufacturing sites in 30 countries and employs about 36,000 people. The materials science company, currently valued at $21.47 billion by market capitalization, serves markets including packaging, infrastructure, mobility and consumer applications. For deeper insights into Dow’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
The information in this article is based on a press release statement from Dow Inc.
In other recent news, Dow Inc. has announced plans to shut down three European operations due to structural challenges in the region. The closures include an ethylene cracker in Böhlen, Germany, a chlor-alkali complex in Schkopau, Germany, and a siloxanes operation in Barry, UK. These shutdowns, expected to be completed by the end of 2027, are projected to result in a $200 million EBITDA uplift by 2029. Meanwhile, Moody’s Ratings has downgraded Dow’s senior unsecured credit rating to Baa2 from Baa1, with a negative outlook, citing depressed earnings and governance concerns. BofA Securities has reiterated its Underperform rating on Dow stock, maintaining a $27.00 price target, following the European facility closures. Additionally, Mizuho has lowered its price target for Dow Inc. to $31.00 from $32.00, attributing the change to challenges in the chemicals sector, including weaker polyethylene pricing. These developments highlight the ongoing challenges Dow faces in the market.
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