Materials Dividends Spotlight: Dow's (DOW) Consistent Payout and Growth Strategy

Dow Inc. (NYSE:DOW) is included among the 13 Best Materials Dividend Stocks to Buy Right Now.

Dow Inc. (NYSE:DOW) is a major global player in materials science and chemicals, providing products and solutions to various industries, including packaging and infrastructure. The company has a broad international presence and manufactures a wide array of chemical, plastic, and specialty materials. Its products are used in numerous applications such as food packaging, adhesives, paints, and construction materials. Dow’s operations are centered around three primary business segments: packaging and specialty plastics, industrial intermediates and infrastructure, and performance materials and coatings.

Dow Inc. (NYSE:DOW) recently reported mixed earnings for the second quarter of 2025. The company posted revenue of $10.1 billion, down over 7% from the same period last year. It is implementing short-term strategies aimed at boosting cash flow and earnings, with expectations of generating over $6 billion by 2026. It is also working to enhance profit margins and streamline its global portfolio, particularly in response to ongoing economic challenges, as shown by its recent actions related to its European operations.

Dow Inc. (NYSE:DOW) recently disappointed investors by reducing its dividend by 50%. However, the company returned $496 million to shareholders through dividends. It now offers a quarterly dividend of $0.35 per share and has a dividend yield of 5.56%, as of July 29.

While we acknowledge the potential of DOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.