Dow Chemical Co. (NYSE:DOW) all set to raise its dividends this year

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By Hanson So on October 23, 2014 Company

On Wednesday, Dow Chemical Co. (NYSE:DOW) released its third-quarter report for the general public showing an increase in their performance levels. The manufacturer of chemical products reported revenue of $14.4 billion as compared to $13.73 billion it had secured during last year’s same period. The diluted earnings per share rose by $0.22 to $0.72 per share, which match closely with estimates given by Thomson Reuters, which were Earnings per Share of $0.68 on revenue of $14.31 billion.

The Company’s Chief Executive Officer seemed very confident about the further progress of the company. He assured that Dow Chemical Co. (NYSE:DOW) remains focused and on course to accomplish all of its money related targets. Dow Chemical Co. (NYSE:DOW) has a very clear view and agenda for its future progress: Improved return on capital, Increase of cash flow and popularizing of innovations that the company’s clients consider valuable.

Dow Chemical Co. (NYSE:DOW) had a cash flow of $1.8 billion from carrying out operations in the third-quarter taking the total operating cash flow value to $3.7 billion. Having a dividend yield of 3.2%, Dow Chemical Co. (NYSE:DOW) repurchased stocks worth $3.1 billion during the first three quarter of the year while shelling out a dividend of $1.3 billion.

The Company’s Chief executive Officer further stated that despite the unstable world-wide macroeconomic conditions, Dow Chemical Co. (NYSE:DOW) is fully focused on taking giant strides to become a global leader in the industry. Dow Chemical Co. (NYSE:DOW) will keep leveraging the force of Dow’s worldwide range and industry-heading operational adaptability and feedstock to deal with the company’s portfolio amidst unpredictable volatile markets. Dow Chemical Co. (NYSE:DOW) also believes that the company will keep showing profitable growth due to its integration with value-added products. In these types of condition, a worldwide scale and adaptability is the best fence against unstable markets, the CEO continued.

Already analysts are giving estimates about how Dow Chemical Co. (NYSE:DOW) will perform in the last quarter of the Financial year. It is expected that the diluted earnings per share for the last quarter will be $0.72 and the total revenue generated will be %14.87 billion. This will take the Earning per share for the year to $2.96 on revenues of $58.58 billion. The Price of a single share of Dow Chemical Co. (NYSE:DOW) has grown by about 18% in the past calendar year. This year Dow Chemical Co. (NYSE:DOW) increased the dividend rate to $0.37 per share for the first quarter, carrying out an increase after 2 years. Given the company’s current policy to focus and achieve its financial targets and repay the shareholders, a dividend in the first quarter of 2015 could well be on the floor and there could be another increase.

Last week, Dow Chemical Co. (NYSE:DOW) secured its from the U.S. Environmental Protection Agency (EPA) for marketing and publicizing its 2,4-D containing Enlist Duo-brand herbicide, a decision which could further increase revenue in the near future. In pre-market trading, its share had risen by 2.8% costing $49.55 per share with a range over 52 weeks between $38.16 and $54.97.