Dow Chemical to
Raise Dividend and Increase Stock Buybacks
Michael J. de la Merced
12, 2014 9:07 am
A Dow Chemical plant in Freeport,
Credit Michael Stravato for The New York Times
Updated, 9:30 a.m. |
Dow Chemical may
still be resisting a call by the
activist hedge fund manager Daniel S. Loeb to break itself up, but it is
taking more steps to return money to its shareholders.
company said on Wednesday that it was raising its stock dividend 14
percent, to 42 cents a share in the fourth quarter. It also said it
was increasing its share buyback program by $5 billion, to $9.5
steps fall short of the big breakup Mr. Loeb – known for taking on
Yahoo and the auction house
Sotheby’s – has advocated for the
chemical maker. His hedge fund, Third Point, owns a stake of roughly 2
percent in Dow.
Dow has said that it believed a more measured sale of nonessential
assets, including its petrochemical business and its Angus Chemical
Company – coupled with a stock repurchase program – would be a better
way to slim down its operations and improve shareholder returns.
“Today’s announcement serves as a firm indication of our board’s
confidence in Dow’s fortified balance sheet position and future
earnings potential, and further illustrates our commitment to
consistently and increasingly rewarding shareholders,” Andrew N.
Liveris, Dow’s chairman and chief executive, said in a statement.
in Dow were up 1.1 percent, at $50.06, in early trading on Wednesday.
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