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Eastman Chemical: A Great Long-Term Dividend Stock At The Right Price

Dec. 13, 2022 5:56 PM ETEastman Chemical Company (EMN)10 Comments
Prasanna Rajagopal profile picture
Prasanna Rajagopal


  • Price increases drive revenue growth.
  • Volume declines have been muted.
  • The company offers a good, growing dividend yield.
  • A slowdown in sales and an increase in inventory pose short-term challenges.

Female technician inspecting pellets made of biodegradable materials


Eastman Chemical (NYSE:EMN) serves attractive end markets. Since the stock’s return has a high positive correlation with the market, it suffers immense losses during bear markets. But, the company offers a good, growing dividend yield. Eastman Chemical would be an excellent company to

This article was written by

Prasanna Rajagopal profile picture
Prasanna Rajagopal comes with in-depth knowledge of the technology industry, having spent over 15 years in various sectors of the software industry. Prasanna loves to learn and write about business and investment opportunities in technology, media, retail, and industrial companies. Prasanna has a M.B.A. from UCLA Anderson School of Management, a M.S. in Industrial Engineering from Wichita State University and a Bachelor's degree in Mechanical Engineering from University of Madras.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EMN, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (10)

Agree with your $79 entry point. Have EMN on my watch list alongside DOW.
Prasanna Rajagopal profile picture
@USECo Thank you for your time! Yes, I agree with you! I like $EMN and $DOW and would buy it at the an appealing valuation. The global economy is more wobbly than what the markets would have you believe. Consumers are cutting back on discretionary spending, so less demand for TVs, laptops, apparel, and other products.
Cashflow620 profile picture
Great Article on an often undercover stock. However, I think this will easily drop below $75. I picked up 55 shares at $73 and that was before the earnings warning and the further deterioration of marco economic headwinds.

What will be a interesting if Eastman can grow its new circular economy with its ability to breakdown plastics at the molecular level
Prasanna Rajagopal profile picture
@Cashflow620 I am grateful for your kind words. I intend to pick a few shares closer to $77. If it falls below $75, I will pick up some more.
Thank you for highlighting the potential for growth in its "circular economy" business. Its deal with Pepsi is attractive, and I will follow it closely. Thank you!
Prasanna Rajagopal profile picture
$EMN technical indicators RSI and MFI are on the high side. It has to decline further. The stock has broken below 200-day SMA. I will wait to get at or below the 50-day SMA price of $80.52. It may get below $80 in the next few trading session. Patience.
Prasanna Rajagopal profile picture
This bear market is far from over. $EMN is dropping with the rest of the market. A patient investor will be rewarded. There is a chance that the stock will go below $80 soon, giving us a price point to consider.
Dividend Ambassador profile picture
I agree. I bought EMN a little to early earlier this year and I feel a bit foolish to tell the truth. Still I think in the end it will turn out to be a very good investment.
Bought it at 86$, but I am prepared to add more if it does drop under 80$.
Abullman profile picture
I’ve had EMN in my portfolio for several years and am not concerned at all with their latest drop in price. I’ve also recently added to my position. They are well managed and since they are a cyclical stock similar to EMR, this kind of volatility is just part of the deal. Long EMN and EMR.
Prasanna Rajagopal profile picture
@Abullman Thank you for your time! I owned $EMN before I did the research and wrote this article. I love it even more after my study. $EMN is a good company, and I hope to add to my holding at or below $80.
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