Dow Is Positioned For A Powerful Rebound

Jun. 05, 2025 9:04 PM ETDow Inc. (DOW) StockLYB, DOW50 Comments
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Summary

  • Dow offers a nearly 10% dividend yield, supported by aggressive cash preservation and asset sales, despite being at the bottom of a cyclical downturn.
  • Management is proactively cutting costs, delaying projects, and focusing on core strengths, positioning Dow to weather industry headwinds and maintain its dividend.
  • Valuation is attractive: the market is pricing in excessive pessimism, but Dow’s cash flow actions and balance sheet provide a strong buffer for the dividend.
  • I rate Dow a Strong Buy for patient investors seeking high income and recovery upside, with disciplined management and a proven track record of resilience.

Indianapolis - February 2016: Dow AgroSciences World Headquarters

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Dow (NYSE:DOW) has been paying dividends continuously since 1912 and today it’s yielding nearly 10%. That’s no coincidence. In a stock market full of pessimism, geopolitical tensions, and demand shortages, Dow stands out as a dividend giant in dire straits. I was intrigued

This article was written by

2.54K Followers
I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DOW over the next 72 hours. 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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