28 Feb

How Good Is DowDuPont’s Dividend Yield?


DowDuPont’s dividend yield

At the end of February 27, DowDuPont’s (DWDP) dividend yield was ~2.8%. Celanese (CE), LyondellBasell (LYB), and Eastman Chemical (EMN) have dividend yields of 2.1%, 4.6%, and 2.96%, respectively. Only Celanese has a lower dividend yield than DowDuPont.

How Good Is DowDuPont’s Dividend Yield?

The dividend yield measures how much cash investors get in return for every dollar invested in a company’s equity—apart from capital gains. Dividends provide constant cash flow for long-term investors who prefer stocks with good dividend yields and growth.

Alternative investment option

DowDuPont’s overall dividend yield trend has been rising since its merger. However, the current yield is marginally down compared to the previous quarter, which was 2.84%. DowDuPont’s dividend yield is also higher than the yield generated from the one-year Treasury bonds, which makes it an alternative investment option for investors.

DowDuPont’s dividend yield has been on an upward trend due to the decline in its stock price. In the past six months, DowDuPont stock has fallen from a high of $71.44 to the current price of $55.88—a decline of ~21.8%. However, the stock has recovered from the lows of $49.09. If the trend continues, the dividend yield might fall.

Investors could hold DowDupont indirectly by investing in the Materials Select Sector SPDR ETF (XLB). XLB has invested 19.7% of its holdings in DowDuPont as of February 27.

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