In the materials sector, we added to Dow (NYSE:DOW), the commodity chemicals company that recently completed its spinoff from conglomerate DowDuPont. Although Dow operates in a cyclical industry that is levered to global demand, the company benefits from having a strong balance sheet, an above-market dividend yield, and a management team focused on cost-cutting and prudent capital allocation. We think that Dow’s internal discipline helps offset the unpredictable nature of its business.
From T Rowe Price Equity Income Fund (Trades, Portfolio)'s second-quarter 2019 shareholder letter.
