Dow Boosts Dividend by 28% - Analyst Blog

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The Dow Chemical Company ( DOW ) announced a 28% hike in its dividend for the second quarter of 2012. As such, the dividend will now rise to 32 cents per share from the previous payout of 25 cents per share. The dividend will be paid on July 30, 2012, to the shareholders of record as of June 29, 2012.

By boosting its dividend Dow ensures that it can offer healthy returns to its shareholders which amply reflects the company's commitment of rewarding its shareholders. Dow also carries on debt repayments while making further investments.

 

Recently, Dow announced that it will be cutting costs owing to weak demand of its products in Europe. As part of its retrenchment process, the company has announced the closure of its manufacturing plants in Europe, North America and Latin America. The company expects to lay off 900 workers as part of its previously announced cost-reduction efforts and its "Efficiency for Growth" program initiated in 2011.

Further, Dow anticipates savings of approximately $250 million annually from these actions. As part of thes initiatives, the company expects restructuring charges and write-downs of about $350 million to be incurred during the first quarter of 2012.

The company announced, in February 2012, its fourth-quarter 2011 results. Its revenues and earnings for the quarter missed the Zacks Consensus Estimates.

Dow faces stiff competition from EI DuPont de Nemours & Co. ( DD ). We currently have a long-term Neutral recommendation on the company. The stock maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating.


 
DU PONT ( EI ) DE ( DD ): Free Stock Analysis Report
 
DOW CHEMICAL ( DOW ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DD , DOW , EI

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