Dow Strengthens Dividend Prospects Following Major Legal Victory in Canada

Dow Inc. (NYSE:DOW) is one of the 10 best dividend stocks according to Jim Cramer.

On June 11, 2025, Citi reaffirmed its Hold rating on the stock but has adjusted the price target from $29 to $30.

A technician operating state of the art machines manufacturing specialized packaging materials.

Headquartered in Michigan, Dow Inc. (NYSE:DOW) is one of the world’s leading manufacturers and suppliers of chemicals, plastics, and sealants. The company’s products and services are used in multiple sectors, including packaging, infrastructure, mobility, and consumer care. With manufacturing sites in 31 countries, the company is a heavy investor in R&D with a special focus on areas like energy efficiency, sustainable packaging, and mobility.

Citi’s Hold rating and the price target adjustment on the stock arrive after a Canadian court order ordered Nova Chemicals to pay Dow Inc. (NYSE:DOW) an additional amount of $1.2 billion in damages. The judgment, arrived on June 10, was in relation to losses incurred by the company from a jointly owned ethylene asset in Joffre, Alberta, Canada. The judgment translated positively among the market experts, particularly after a fall in stock price on June 2, 2025, following the sale of 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş.

Dow Inc. (NYSE:DOW) offers a dividend yield of 9.29%, thereby attracting investors seeking high and consistent income. However, the payout ratio of over 700% signals caution when investing in the stock.

While we acknowledge the potential of DOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure. None.

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