Analysis – Dow Chemical Co. Increases Dividend by 10%

Dow

Dow Chemical Company announced a regular quarterly dividend of $0.46, a 10 percent increase from the prior rate of $0.42 per share. The dividend will be paid at the new higher rate on January 29, 2015, to shareholders of record at close of business on December 31, 2015.

Date Quarterly Dividend
12/31/2015 0.46
9/28/2015 0.42
6/26/2015 0.42
3/27/2015 0.42
12/29/2014 0.42
9/26/2014 0.37
6/26/2014 0.37
3/27/2014 0.37
12/27/2013 0.32
9/26/2013 0.32
6/26/2013 0.32
3/26/2013 0.32
12/20/2012 0.32
9/26/2012 0.32
6/27/2012 0.32
3/28/2012 0.25
12/28/2011 0.25
9/28/2011 0.25
6/28/2011 0.25
3/29/2011 0.15
12/29/2010 0.15
9/28/2010 0.15
6/28/2010 0.15
3/29/2010 0.15

Analysis of Valuation of Dow Chemical Co. (Symbol DOW).

Dow Chemical is trading below its average price/sale (P/S) range.  Dow Chemical is trading at the top of its average historical dividend yield. 

Price 10/23/15 % Yield 5 Year Div. Growth Rate  SPS    2015 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$50.32 4.15% 11% 15.15 0.92 0.15 3.32 4.15% 1.48%

Dow Chemical Company Dividend Yield Chart (Click to enlarge)

DOW2

 

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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