We not too long ago printed 12 Newest Shares On Jim Cramer’s Radar. Dow Inc. (NYSE:DOW) is without doubt one of the shares Jim Cramer not too long ago mentioned.
Dow Inc. (NYSE:DOW)’s shares are among the many worst performers on the inventory market in 2025 as they’ve misplaced 40% year-to-date. The agency has struggled as a consequence of sluggishness within the broader industrial sector and worries concerning the affect of tariffs on international commerce. Dow Inc. (NYSE:DOW) additionally shocked buyers in July when it slashed its dividend in half and revealed that its packaging income had dropped by 8.9% to $5 billion. Cramer isn’t a fan of the inventory:
“Dow, can I’ve a motive? It’s such as you’ve obtained to present me a motive to suggest the inventory. You’ll be able to’t simply say you understand what we’re going to purchase it as a result of it’s low. Trigger a variety of that’s going to derived by China and I’m not seeing it.”
After Dow Inc. (NYSE:DOW) halved its dividend, Cramer was filled with phrases for the agency:
“A dividend sucker is born each minute. Final week, chemical big Dow lower its dividend in half, taking it from 70 cents per quarter to 35 cents, saving about $1 billion yearly… I heard that the dividend would shield the inventory. When Dow’s dividend yield was 5%, the presumption was that you simply had to purchase. Why? As a result of that was higher than the 10-year treasury yield. See, folks stated you had been principally being paid to attend for the chemical enterprise to show round…
Copyright: bialasiewicz / 123RF Inventory Photograph
Now, I’ve at all times championed the notion that we needs to be in search of what I name unintended excessive yields, shares which have fallen so low, not based mostly on the corporate, however on a market-wide transfer. Now, these shares might be terrific investments, however was Dow an unintended high-yielder? When you have a look at its historical past, you understand that Dow lower its dividend in March of 2009 from 42 cents to fifteen cents. So it’s not like they’ve an extended observe file of consistency. No. The lesson of Dow is that in case you see a yield that’s too excessive, it’s not an indication of security, it’s an indication of hazard…
Whereas we acknowledge the potential of DOW as an funding, our conviction lies within the perception that some AI shares maintain better promise for delivering greater returns and have restricted draw back threat. If you’re in search of an especially low-cost AI inventory that can also be a significant beneficiary of Trump tariffs and onshoring, see our free report on the finest short-term AI inventory.
