Fintel reports that on September 25, 2023, JP Morgan upgraded their outlook for Dow (NYSE:DOW) from Neutral to Overweight.

Analyst Price Forecast Suggests 14.10% Upside

As of August 31, 2023, the average one-year price target for Dow is 57.33. The forecasts range from a low of 47.47 to a high of $69.30. The average price target represents an increase of 14.10% from its latest reported closing price of 50.25.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Dow is 52,469MM, an increase of 6.55%. The projected annual non-GAAP EPS is 4.46.

Dow Declares $0.70 Dividend

On August 9, 2023 the company declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of August 31, 2023 received the payment on September 8, 2023. Previously, the company paid $0.70 per share.

At the current share price of $50.25 / share, the stock’s dividend yield is 5.57%.

Looking back five years and taking a sample every week, the average dividend yield has been 5.44%, the lowest has been 3.95%, and the highest has been 12.73%. The standard deviation of yields is 1.14 (n=209).

The current dividend yield is 0.11 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 1.13. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 2715 funds or institutions reporting positions in Dow. This is a decrease of 94 owner(s) or 3.35% in the last quarter. Average portfolio weight of all funds dedicated to DOW is 0.35%, a decrease of 7.90%. Total shares owned by institutions increased in the last three months by 0.34% to 513,192K shares. The put/call ratio of DOW is 0.86, indicating a bullish outlook.

What are Other Shareholders Doing?

Massachusetts Financial Services holds 23,410K shares representing 3.33% ownership of the company. In it’s prior filing, the firm reported owning 23,332K shares, representing an increase of 0.33%. The firm decreased its portfolio allocation in DOW by 3.81% over the last quarter.

Pzena Investment Management holds 14,884K shares representing 2.12% ownership of the company. In it’s prior filing, the firm reported owning 14,901K shares, representing a decrease of 0.12%. The firm decreased its portfolio allocation in DOW by 4.06% over the last quarter.

Capital World Investors holds 14,109K shares representing 2.01% ownership of the company. In it’s prior filing, the firm reported owning 14,107K shares, representing an increase of 0.02%. The firm decreased its portfolio allocation in DOW by 9.58% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 12,868K shares representing 1.83% ownership of the company. In it’s prior filing, the firm reported owning 22,093K shares, representing a decrease of 71.69%. The firm decreased its portfolio allocation in DOW by 21.87% over the last quarter.

Bnp Paribas Arbitrage holds 12,571K shares representing 1.79% ownership of the company. In it’s prior filing, the firm reported owning 8,257K shares, representing an increase of 34.32%. The firm increased its portfolio allocation in DOW by 771.37% over the last quarter.

Dow Background Information
(This description is provided by the company.)

Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through its materials science expertise and collaboration with its partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020.

This article originally appeared on Fintel

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