Dow Inc. (DOW): A High-Yield Dividend Stock in the Materials Sector

Dow Inc. (NYSE:DOW) is included among the 10 Highest Dividend-Paying Stocks to Buy in the S&P 500.

Dow Inc. (DOW): A High-Yield Dividend Stock in the Materials Sector

Dow Inc. (NYSE:DOW) is the producer of polyethylene and other commodity chemicals that are used as raw materials in packaging and consumer product industries. Meanwhile, the company has faced pressure in recent years from rising US interest rates and growing domestic supply in China. Adding to the problems, Dow slashed its dividend by 50% this year, a move that weighed on the company’s stock. The stock has fallen by almost 42% since the beginning of 2025.

Nevertheless, Dow Inc. (NYSE:DOW) is still relying on its core strengths to turn its fortunes around — manufactured integration, access to inexpensive feed stocks, and a deep commitment to sustainability. Its operations depend on its global supply chain management and the continual adoption of new technologies. The company focuses on innovation, global reach, and an integrated value chain as the core of what will drive success in the long term. With volatile market conditions, it has shifted focus toward cutting costs, optimizing assets, and preserving capital.

Though Dow Inc. (NYSE:DOW) cut its dividend, the firm still paid $496.0 million to shareholders in dividends in the last quarter. The company provides an annual dividend of $0.35 per share and has a dividend yield of 6.10%, as of September 27.

While we acknowledge the potential of DOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOW and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Capture Strategy: 15 High Yield Stocks to Buy in October and 10 Cash-Rich Dividend Stocks to Buy Right Now.

Disclosure: None.