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Opinions John Stephenson
Dow Inc. (Formerly Dow Chemical) (DOW-N)DOWBUYNov 25, 2014
Stock price when the opinion was issued
As of Jun 22, 2026. Market Open.
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Lorne SteinbergNot the merged Dow. They're not focussing on packaging and materials. Pays a 5.5% dividend at 12x earnings. A defensive stock. He expects surprising growth. (Analysts’ price target is $60.45)
Lorne Steinberg(A Top Pick Dec 13/16. Up 7%.) This has merged and is going to split into 3 pieces. The underlying metrics of the 3 different businesses are all generally improving. Generates a lot of cash.
David BurrowsOne of the themes that is starting to play out is materials, and chemicals would be included in this. This company has lots of opportunity. The economy is growing nicely and their business is improving. You get a very nice 3% dividend. If the US economy continues to perform, the stock is going to do well. It recently pulled back to $63, which is a great opportunity to buy it.
This is a good company that is getting better. They are merging into DuPont (DD-N), and will wind up splitting into 3 pieces. The US has the lowest cost natural gas globally. In chemical companies, natural gas is the biggest cost. There are very persistent low natural gas prices because of what has happened with fracing in the US. The merging companies will likely unlock some value. They generated about a 20% dividend growth over the last 5 years. Dividend yield of 3.01%. (Analysts’ price target is $67.06.)
David BurrowsGoing through a merger with DuPont, which should be approved sometime in 2017. There will be a spin out at 3 different businesses. They have grown their dividend at about 20% a year over the last 5 years. There is tremendous cost savings to be had. He likes the industrials group. Also, the feed stock that goes into the materials they produce, are at the lowest costs. Dividend yield of 3.16%. (Analysts’ price target is $61.44.)
David Burrows
This is looking a lot better. There is an activist involved, which is one that tends to get the results. The chemical industry in general is one that is ripe for activism. A very cyclical industry. They tend to do things just at the wrong time. In general there is a renaissance in the chemical industry, because of low gas prices and a resurgence of the US oil/gas industry. This is probably a good time to be in this.