Dow Chemical raises dividend 28 percent
Dow Chemical raises dividend 28 percent NEW YORK (Global Markets) - Dow Chemical Co (DOW.N) on Thursday boosted its quarterly dividend 28 percent, dipping further into its growing $5.44 billion cash reserve and saying it expects earnings growth for the foreseeable future.Stock Market Predictions
The quarterly payout from the largest U.S. chemical maker by sales will rise to 32 cents from 25 cents but has yet to return to a pre-recession level of 42 cents.
Still, the hike shows Dow's confidence that many of its core businesses are stabilizing.
The dividend increase comes nearly a year after Dow last boosted its dividend.
That increase, to 25 cents from 15 cents, was the first since Dow cut its dividend in 2009.
Before 2009, Dow had never cut its dividend. It either raised it or held it steady ever since the company's 1897 founding.
The company's cash reserve jumped sharply in the fourth quarter of 2011 to $5.44 billion from $2.21 billion in the third quarter.
"We are confident in our ability to continue to achieve higher and more sustainable earnings, and today's announcement demonstrates our commitment to increasingly reward shareholders as we grow," Dow Chief Executive Andrew Liveris said in a statement on Thursday.
The dividend will be payable on July 30 to shareholders of record as of June 29.
Shares of Dow rose 1.9 percent to $33.25 in after-hours trading.
Dow is set to post first-quarter results on Thursday, April 26.
(Reporting By Ernest Scheyder; Editing by David Gregorio)