Corteva's 6% Total Yield Represents Good Value Despite Lower Guidance

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About: Corteva, Inc. (CTVA)
by: Mark Hake CFA
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Mark Hake CFA
Long/short equity, Deep Value, contrarian, arbitrage
Summary

Even though Corteva, the seed and crop protection spin-off from Dow this summer, lowered its EBITDA guidance, the stock's 6% total yield represents good value.

It has a 2.07% dividend yield and a 2.5% FCF yield. In addition, the company has started buying back shares, giving it an 4% estimated buyback yield.

To be conservative, I have lowered my target price to $30.92, which still represents an upside of 23% for investors.

I have written several articles on Corteva (CTVA) since it was spun off from Dow DuPont (now Dow (DD) on June 1, 2019. This includes a recent article on CTVA on