Dow Chemical Pays About 34% Of Its Profit As Dividend

The Dow Chemical Company DOW revealed that its board has declared a dividend of 46 cents per share. That meant that the company paid approximately 34 percent of its profit as a dividend to its shareholders.

Interestingly, the average dividend payout ratio for the last five-year was 65.0 percent. Therefore, the current rate of payout ratio suggested that it could boost its dividend rate subject to the profitability growth.

Dow Chemical said that the dividend would be payable on July 29 to all the eligible shareholders. The company has fixed a record date of June 30. The chemical firm said that the latest dividend marked the 419th consecutive cash dividend issued by it. The company said that has been paying the cash dividends every quarter since 1912 to its shareholders.

The company's dividend provided a yield of 3.6 percent, which was better than the five-year average yield of 3.2 percent. Since, it boosted its dividend for last two straight years, its dividend growth rate for the three-year period was 11.37 percent.

On Thursday, the stock traded 1.15 percent higher.