You should also check the sector that the stock is in and how it looks respective to the overall market. While dividend investing is one of the best ways to build wealth over time and take advantage of compounding, the last thing you want to do is buy a stock that decreases in value substantially or even cuts its dividend payouts after you buy.
One dividend stock in the industrial sector looks like a solid buy at this time. Dow Inc (NYSE:DOW) is a global chemical company with a nice dividend yield that investors might want to consider adding. Not to be confused with the Dow Jones Industrial Average, this stock has a diversified business model and could reward shareholders with solid returns over the long-term. Let’s take a look at why Dow Inc is a great dividend stock.
Dow Inc. is a company that is the product of a spin-off from DowDupont back in April 2019. One of the big reasons why dividend investors should be interested in the stock has to do with its diversified business model.
The materials science company produces industrial chemicals that play a vital role in things like manufacturing, electronics, construction, healthcare, and more. It generated $43 billion in sales in 2019 and has a strong presence in all key geographic markets.
Most of the chemicals that the company produces had very strong demand prior to the pandemic and the fact that Dow’s products are used in so many different industries around the world could make it a reliable choice for long-term buyers.
Although Dow’s sales figures have been negatively impacted by the pandemic as demand for auto manufacturing and construction materials decreased significantly during the first half of the year, the company has other products that helped to offset the downturn.
Since Dow’s chemicals are also used to create