As of Friday, several stocks were granting shareholders a forward dividend yield that more than doubled the S&P 500 Index's yield of 1.85%. As such, dividend investors may want to consider the following chemical companies.
The first company is Dow Inc. (DOW, Financial), which had a closing share price of $58.3 and a market capitalization of $43.73 billion on Friday. The stock has a forward dividend yield of 4.8% versus an industry median of 2.05%.
On April 11, the Midland, Michigan-based chemical company announced a quarterly dividend of 70 cents per share. The payment will be made on June 14 to shareholders of record as of May 31. The ex-dividend date is scheduled for May 30.
This is the first dividend the company will pay after its separation from DowDuPont on April 1.
The stock also has a forward price-earnings ratio of 11.49 versus an industry median of 16.29 and a price-book ratio of 1.63 compared to an industry median of 1.83.
Since April 1, the share price of Dow increased 9%, outperforming the S&P 500 (SPY, Financial) exchange-traded fund by 7%.
GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability and growth rating of 4 out of 10.
Wall Street issued a buy recommendation rating for shares of Dow with an average target price of $62.63 per share.
The second company is LyondellBasell Industries N.V. (LYB, Financial), which closed at $92.29 per share and had a market capitalization of $34.2 billion on Friday. The forward dividend yield is 4.33% versus the industry median of 2.05%. The United Kingdom-based international chemical company has paid dividends since May 2011.
The chart below shows the dividend per share increased 2.8% on average every year over the past five years, and the dividend yield has moved into a range of 0.24% to 5.06% over the same period.
The stock has a price-earnings ratio of 6.16 compared to an industry median of 18.54, a price-book ratio of 3.38 versus an industry median of 1.83 and a price-sales ratio of 0.92 versus an industry median of 1.27. The enterprise value-earnings before interest, taxes, depreciation and amortization ratio is 6.13 versus the industry median of 11.5.
The stock has fallen 12% over the past year through April 12. Shares are trading below the 200-day simple moving average line, but still above the 50- and 100-day line. The 52-week range is $77.52 to $119.39.
GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability and growth rating of 7 out of 10.
Wall Street issued an overweight recommendation rating on shares of LyondellBasell with an average target price of $102.95 per share.
Disclosure: I have no positions in any securities mentioned.
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