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Dow Inc (NYSE:DOW)’s stock has reached a 52-week low, closing at $25.05. According to InvestingPro data, the chemical manufacturer currently offers a substantial 9.22% dividend yield, though analysis suggests the stock is slightly undervalued at current levels. This marks a significant downturn for the company, which has seen its stock price decline by 52.36% over the past year. The chemical manufacturing giant, with a market capitalization of $17.78 billion, has faced numerous challenges, including fluctuating demand in key markets and rising raw material costs, contributing to its stock’s downward trajectory. InvestingPro analysis reveals 12 analysts have revised their earnings expectations downward for the upcoming period. As investors assess the broader market conditions and the company’s strategic responses, Dow Inc’s performance remains under close scrutiny. For deeper insights into Dow’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Dow Inc. announced a significant reduction in its quarterly dividend, cutting it by 50% to 35 cents per share. The company cited a challenging macroeconomic environment and an industry downturn as reasons for this decision. Moody’s Ratings downgraded Dow’s senior unsecured credit rating to Baa2 from Baa1, maintaining a negative outlook. This downgrade was attributed to Dow’s depressed earnings and governance concerns, particularly regarding its history of elevated dividend payouts despite weakened earnings. BofA Securities reiterated its Underperform rating for Dow, following the company’s decision to close three European operations. These closures include an ethylene cracker in Böhlen, Germany, a chlor-alkali complex in Schkopau, Germany, and a siloxanes operation in Barry, UK. Dow stated that these shutdowns, set to begin in 2026 and complete by 2027, aim to address structural challenges and are expected to result in a $200 million EBITDA uplift by 2029.
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