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) 

For more on Dow visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Al Greenwood
+1 713 525 2645

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index