Dow Inc. (DOW): Good News About Industrial Economy Isn’t Helping, Says Jim Cramer
We recently published 14 Stocks Jim Cramer Discussed As He Went “All In” On Quantum Computing. Dow Inc. (NYSE:DOW) is one of the stocks Jim Cramer recently discussed.
Dow Inc. (NYSE:DOW) is one of the largest chemical companies in America. The firm’s shares have lost 35% year-to-date, primarily on the back of a massive 26% selloff in April after President Trump announced his Liberation Day tariffs. Dow Inc. (NYSE:DOW)’s shares suffered another setback in July after they dipped by 17.5% after the firm’s latest earnings report, which saw the firm guide third quarter sales at $10.2 billion, which was lower than analyst estimates of $10.6 billion. Dow Inc. (NYSE:DOW) also slashed its dividend, and here’s what Cramer said about the firm after the disastrous earnings report:
“But then, Dow Chemicals, just, Dow, no longer Dow Chemicals. The chemicals are bad. The plastic is bad. So Jim Fitterling had to cut the dividend. I had said that this could happen. I didn’t want it. But it’s lower for longer, for three years, it’s a very unusual negative cycle. And I’ve got to tell you, for all the good news we hear about the industrial economy, it’s not helping.
Previously, the CNBC TV host commented on Dow Inc. (NYSE:DOW)’s dividend yield:
“9%, see I looked at that today. There were a bunch of guys who cut the price targets. I said to myself, wow, 9%… I have to take a pass because it means that there’s something awry.”
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Disclosure: None. This article is originally published at Insider Monkey.