Dividend Overview
Dividend Yield
5.06%
Dividend / Share
$2.10
Dow Inc
Exchange: NYSESector: Basic MaterialsIndustry: Chemicals
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries.
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A large-cap company with a $29.4B market cap.
Current Price
$41.40
+1.74%Profile
Valuation (TTM)
Market Cap$29.43B
P/E-11.22
EV$41.83B
P/B1.84
Shares Out710.77M
P/Sales0.74
Revenue$39.97B
EV/EBITDA44.80
Dow Inc (DOW) Dividends
GoodMoat Analysis
The dividend profile of Dow Inc is unfavourable for a value investor. The company's negative free cash flow and earnings make the current 5.29% yield appear unsustainable, as there is no cash generation to support the payout. A weak balance sheet and poor quality metrics further undermine confidence in the dividend's security.
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An analysis of Dow Inc's dividend profile reveals significant sustainability concerns. The core issue is the company's negative free cash flow yield of -5.8%, indicating it is not generating the cash required to fund its dividend. This is corroborated by negative earnings per share (-$3.70) and a negative profit margin (-6.6%), making a traditional payout ratio meaningless as there are no profits to pay out from. The dividend is likely being funded from balance sheet resources or debt, which is already elevated with a Debt/Equity ratio of 1.22. According to the GoodMoat framework's Quality Indicators, a strong balance sheet requires low debt (Debt/EBITDA < 1.0x) and positive, growing free cash flow. Dow fails on both counts, scoring 'Weak' for these critical quality metrics. While the 5.29% yield is high and may attract income seekers, it is a yield trap without underlying financial strength. The company is not in a position to grow the dividend, given its -9.1% revenue decline and negative operating margin of -3.9%. For an income-focused value investor, the dividend's continuation depends on a rapid and uncertain recovery in the cyclical chemicals sector to restore profitability and cash flow. Analysis based on data as of 2024-05-15.
Key Metrics
Market Cap
$29.43B
P/E Ratio
-11.22
Forward P/E
—
EPS
$-3.70
PEG Ratio
-0.00
Book Value
$22.52
Dividend Yield
5.06%
Profit Margin
-6.56%
ROE
-16.39%
Dividend History
Dividend Safety
DOW Dividend Analysis
Dow Inc (DOW) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 5.06%. The annual dividend per share is $2.10.
P/E ratio: -11.22. Profit margin: -6.56%. Free cash flow: $-1.64B. This page shows Dow Inc's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.
GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Dow Inc's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.