Current Report: Dow Inc (DOW)

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Dow Inc bears the ticker symbol DOW, and  this is my first mention of Dow Inc for my new Viking Portfolio.  However I have  previously selected DOW for one or  more of my previous seven Dog of The Week Portfolios.

Dow Chemical is a diversified global chemicals producer that was formed in 2019 as a result of the DowDuPont merger and subsequent separations. The firm is a leading producer of several chemicals, including polyethylene, ethylene oxide, and silicone rubber. Its products have numerous applications in both consumer and industrial end markets.

It also engages in property and casualty insurance, as well as the reinsurance business.

Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.

Three key data points gauge

Dow Inc:

(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 $50.20 at Friday’s market close. And, in the past year, DOW’s share price fell by $4.48 or about 8.2%.

If Dows’ stock trades in the range of $40.00 to $60.00 this next year, its recent $50.20 share price might reach $54.00 by next year. My upside increase estimate of $3.80 is $4.15 over the median of one year price target estimates from 22 analysts, and nearly three times the annual average DOW price upside.

 

DOW Dividends

Dow Inc’s most recently declared quarterly dividend of $0.70 per share, equals  $2.80 annually and casts an annual yield of 5.58%.

 

DOW Returns

Adding the $2.80 annual estimated DOW dividend to my one-year price upside estimate of $3.80 reveals a $6.60 potential gross gain per share.

At Friday’s $50.20 closing price, a little over

$1000 would buy 20 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated $6.60 gross gain makes a net gain of $6.10 X 20 shares = $122.00 for a 12.2% net gain including a 5.58% annual dividend yield.

In one year our $1K investment in shares of Dow Inc would generate $55.80 in cash dividends. Of course, a single share of DOW stock at Friday's $50.20 price is over $5.60 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is the right time to buy DOW shares based on their dividends for the coming year 2023. The current dividend from $1K invested is $5.60 more than Dow’s single share

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


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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