Is Dow Inc dividend safe? (2024)

Is Dow Inc dividend safe?

To evaluate the sustainability of its dividends, examining Dow Inc's dividend payout ratio is essential. As of March 31, 2024, the payout ratio is 1.28, which may raise concerns about the long-term sustainability of these dividends.

The Dow's highest-yielding dividend stocks right now

(NYSE: DOW), and oil giant Chevron (NYSE: CVX), with trailing yields of 6.5%, 5.3%, and 4.5%, respectively.

Dow Inc has a consensus rating of Hold which is based on 3 buy ratings, 11 hold ratings and 0 sell ratings. What is Dow Inc's price target? The average price target for Dow Inc is $58.69. This is based on 14 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Dividend Data

Dow Inc.'s ( DOW ) dividend yield is 5.23%, which means that for every $100 invested in the company's stock, investors would receive $5.23 in dividends per year. Dow Inc.'s payout ratio is 170.75% which means that 170.75% of the company's earnings are paid out as dividends.

To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.

The financial health and growth prospects of DOW, demonstrate its potential to perform inline with the market. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.

With questions about the U.S. economy mounting, here are three high-yield dividend stocks that investors can buy and hold forever: Ford Motor Company (NYSE: F), AT&T (NYSE: T), and Kraft Heinz (NASDAQ: KHC).

You can retire on dividends. To do so, you generally need to start investing in dividend-paying assets early and reinvest the dividends until you retire.

What is Dow average returns?

Based on short-term price targets offered by 14 analysts, the average price target for Dow Inc. comes to $58.21. The forecasts range from a low of $54.00 to a high of $64.00. The average price target represents an increase of 8.64% from the last closing price of $53.58.

(NYSE: DOW) Dow's forecast annual earnings growth rate of 50.94% is forecast to beat the US Chemicals industry's average forecast earnings growth rate of 29.13%, and it is also forecast to beat the US market's average forecast earnings growth rate of 18.95%. Dow's earnings in 2024 is $1,152,000,000.

Dow Inc currently boasts a 12-month trailing dividend yield of 4.82% and a matching 12-month forward dividend yield of 4.82%, indicating stable expected dividend payments over the next year.

As of 2023-12-31, Dow Inc's dividend payout ratio is 1.40, which may suggest that the company's dividend may not be sustainable.

As a tactic, Dogs of the Dow goes like this—after the stock market closes on the last day of the year, select the 10-highest dividend-yielding stocks in the DJIA. Then, on the first trading day of the new year, invest an equal dollar amount in each of them.

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.

And the higher that balance gets, the less of a dividend yield you'll need to generate some significant income. If, for example, your portfolio gets to a value of $1.5 million, you could invest in a fund or multiple investments that yield an average of 3.3%. At that rate, you could generate $50,000 in annual dividends.

Here's Where Pros See Stocks Headed Next. It took seven years for the Dow Jones Industrial Average to move from 20,000 to 40,000, and it had to bounce back from an April slump to cross the finish line. The 30-component blue-chip index now joins the Nasdaq and the S&P 500 in making recent highs.

Will Dow hit $35,000?

By November 2020, the Dow had closed above 30,000 for the first time. The momentum from the Covid lows carried through to 2021, with the Dow breaking above 35,000.

They represent different swaths of companies and so have different properties. If we want to gauge the market performance over a specific time period or compare your portfolio's performance to a certain benchmark, the S&P 500 provides a more accurate representation of the stock market as a whole.

Over time, the cash flow generated by those dividend payments can supplement your Social Security and pension income. Perhaps, it can even provide all the money you need to maintain your preretirement lifestyle. It is possible to live off dividends if you do a little planning.