Daily Stock Analysis: Dow Inc

Dow Inc, with the ticker DOW, is a large-cap chemicals company operating in the materials business sector. This is my second report on Dow Inc for my Viital portfolio. I last reported on them  December 13, 2021.
 

Image: Dow Inc

Dow Inc is a diversified chemical manufacturing company. It combines science and technology to develop innovative solutions that are essential to human progress.

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.

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

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 $51.69 as of Friday's market close. One year ago its price was $61.93. Therefore, Dow Inc’s share price fell $10.24 or about 16.5% in the past year.

If DOW’s stock trades in the range of $40.00 to $75.00 this next year, its recent $51.69 share price might rise by $10.31 to reach $62.00 by July 6, 2023. My $10.31 upside estimate is  $7.37 under the median of one year price estimates from nineteen analysts covering DOW.

DOW Dividends

DOW’s most recently declared quarterly dividend of $0.70 was paid June 10, 2022 to shareholders on record as of May 27th.

DOW has paid those same quarterly dividends, increasing annually, since June 2019.  The current annual dividend of $2.80 delivers yields of 5.42%  per Friday’s  share price.

DOW Returns

Adding the $2.80 DOW annual dividend to my estimated one-year price upside estimate of $10.31 shows a $13.11 potential gross gain, per share, to be reduced by any costs to trade DOW shares.

At Friday's $51.69 closing price, a little under $1000 would buy 19 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.53 per share.

Subtract that maybe $0.53 brokerage cost from my estimated $13.11 gross gain estimate per share results in a net gain of $12.58 X 19 shares = $239.02. for a 23.9% net gain including a 5.4% forward looking annual dividend yield.

So it is that Dow Inc shows a possible 23.9% net gain including a 5.42% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Dow inc shares would generate $54.20 in cash dividends. Of course, a single share of DOW stock bought at Friday's $51.69 price is $2.51 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up DOW shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is $2.51  more than yesterday’s single share price. Consider yourself alerted. It's a sign.

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.

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 ...

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