Dow cuts dividend by 64%, stock dips below $10

12 February 2009 20:07  [Source: ICIS news]

(adds Dow stock update, paragraph 7)

HOUSTON (ICIS news)--US major Dow Chemical on Wednesday lowered its dividend to 15 cents/share (€0.12/share), a 64% cut, as its stock fell below $10.

Dow attributed the dividend cut to uncertain credit markets, unprecedented lower demand for chemical products, the global recession and "pending business issues", the company said.

Dow had last declared a dividend on 11 December. That dividend was 42 cents/share.

Dow CEO Andrew Liveris said on 3 February the company may cut its dividend to preserve its investment-grade rating, a reverse from an earlier pledge.

Dow cut its dividend as its stock hit 20-year lows.

Dow stock traded at $9.86 as of 13:46 hours New York time (18:46 GMT), down 1.79%.

The stock later recovered, closing at $10.04, down 1 cent from the opening price.

($1 = €0.78) 

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By: Al Greenwood
+1 713 525 2645

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