PE of 6.6 + 5% dividend yield is a pretty good comparison for an attractive stock. And that’s the equation for Dow Incorporated (DOW) right now. Find out why it’s one of our favorite value stocks in 2023 in the article below.
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The answer to the headline is YES!…Dow Inc (DOW) is one of the most attractive value stocks for the year ahead.
Why?
Now let me spell it out for you…
As you know, DOW is a diversified chemical manufacturing company that combines science and technology to develop innovative solutions essential to human progress. The well-diversified portfolio includes packaging and specialty plastics, industrial intermediates and infrastructure, and performance materials and coatings.
This selection is in many ways the antithesis of the previous top pick, Bristol-Myers Squibb (BMY), which was quite conservative. Here we select a leading materials company to enjoy tremendous growth as the economy gets back on track later in 2023. It is likely that those good times will continue for another 5-10 years, just like the previous bullish cycle that pushed up earnings per share and share price.
An interesting part of the DOW story is their surprisingly low-cost structure that allows the company to withstand inflationary pressures better than most other companies. It is also able to pass on price increases as its products are essential to so many industries. This combination points to healthy profit margins ahead.
The company has a Value Grade of A, which makes sense with a P/E of only 6.6. It also has a quality grade of B, indicating superior operational efficiency.
As if that wasn’t attractive enough, the company also generates huge revenues thanks to a 5% dividend yield. As interest rates begin to fall later in 2023, income stocks like DOW become all the more attractive, bolstering the already impressive upside potential.
Want to discover more value stocks?
DOW is just 1 of 7 attractive value stocks found in a new special report we just put together. Click the link below to claim your free copy now:
7 SERIOUSLY undervalued stocks
What to do now?
Check out my brand new presentation: “Stock market outlook for 2023” covering:
- Why 2023 a “Jekyll & Hyde” year for shares
- 5 warnings indicate the bear will return in early 2023
- 8 trades to make a profit on the way down
- Plan to Bottom Fish @ Market Bottom
- 2 Trades with 100%+ upside potential as new bull emerges
- And much more!
Watch now: “Stock market outlook 2023” >
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return
DOW shares traded at $56.01 per share Thursday morning, down $0.83 (-1.46%). Year-to-date, DOW has gained 11.15% versus a 1.53% increase in the benchmark S&P 500 index over the same period.
About the author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the company, but he also shares his 40 years of investing experience in the Reitmeister Total Return Portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
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