Daily Stock Report: Dow Inc (DOW)

Dow Inc, known by the ticker symbol DOW, is a large cap Chemicals company in the materials business sector. This is my first report on DOW for my Viital stock portfolio. I have not reviewed Dow since selecting it a dark horse candidate for my first pick in my (6th) Vista portfolio as of September 11, 2020.

Dow Inc is a diversified chemical manufacturing company.  Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.

Dow's portfolio is comprised of six global business units, organized into three operating segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. It also engages in property and casualty insurance, as well as reinsurance business.

Three key data points gauge any dividend equity or fund such as Dow Inc (DOW): (1) Price (2) Dividends (3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

DOW Price

Dow's price per share was $54.68 as of Friday's market close. One year ago its price was $54.00. Thus, Dow's share price grew just 1.25% in the past year.

If Dow's stock trades in the range of $48.00 to $68.00 this next year, its recent $55.68 share price might rise by $10.32 to reach $65.00 by December 13, 2022. My estimate is $0.43 under the median of 21 target estimates from analysts  covering Dow for brokerages.

DOW Dividends

Dow's most recent quarterly dividend of  $0.70  pad out Friday, December 10th, to shareholders of record November 29th. That dividend equates to $2.80 annually and yields 5.12% per Friday's $54.68 closing price. 

Dow Inc (DOW) has paid the same $.70 quarterly dividends increasing generally since its inception as the surviving member of the Dow Dupont merger and spin-offs between 2015 an  2019.

DOW Returns

Adding the $2.19 annual estimated Dow Inc forward-looking dividend to my $10.32 price upside estimate shows a $12.51 potential gross gain, per share, to be reduced by any costs to trade DOW shares.  

At Friday's $54.68 price per share, a little under $1000 would buy 18 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.56 per share.

Subtract that maybe $0.56 brokerage cost from my estimated $10.32 gross gain per share results in a net gain of $9.76 X 18 shares = $175.68 for a 17.6% net gain on a $984.24  investment.

So it is that Dow Inc (DOW)  shows a possible 17.6% net gain including a 5.12% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Dow Inc (DOW) could generate $51.20 in cash dividends alone. Note that a single share of DOW stock bought at Friday's closing price was $54.68. Therefore, Dows  share price is $3.48 more than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is not a prime time to pickup Dow Inc (DOW)  shares. The estimated next-year dividend from $1K invested is nearly about $3.50 less than DOW's single share price. Consider yourself alerted. It's a sign!  Set your share buy price to $52.00.

All of the estimates above are speculation based on the past history of Dow Inc (DOW). Only time and money invested in this stock will determine its market value.