10 Best Dividend Stocks Yielding at Least 7% According to Analysts

2. Dow Inc. (NYSE:DOW)

Upside Potential as of February 5: 19.9%

Dividend Yield as of February 5: 7.32%

Dow Inc. (NYSE:DOW) is an American multinational chemicals company that mainly operates in the material science industry and is involved in the manufacturing and marketing of a wide range of chemical, plastic, and agricultural products.

Dow Inc. (NYSE:DOW) recently announced its Q4 2024 earnings, reporting revenue of $10.4 billion, down 2% from the same period last year. Despite ongoing macroeconomic challenges, the company achieved a 1% increase in volume compared to the same period last year, marking its fifth consecutive quarter of year-over-year volume growth. This growth was driven by strong demand for high-value applications and the company’s cost-advantaged operations across various regions. In addition, in December, the company finalized an agreement to sell a minority stake in select US Gulf Coast infrastructure assets, a move expected to generate up to approximately $3 billion in cash proceeds.

Dow Inc. (NYSE:DOW) is structured around three main segments: packaging and specialty plastics, industrial intermediates and infrastructure, and performance materials and coatings. Similar to businesses in other commodity-driven industries like oil, gas, and gold mining, Dow has no influence over market prices for raw materials. Instead, its focus remains on cost management and optimizing production efficiency to maintain competitiveness.

Dow Inc. (NYSE:DOW) is a strong dividend company with a stable cash position. In the most recent quarter, the company reported an operating cash flow of $811 million. Moreover, it returned $492 million to shareholders through dividends. It is one of the best dividend stocks on our list as the company has been making regular dividend payments to shareholders since 1912. It offers a quarterly dividend of $0.70 per share and has a dividend yield of 7.32%, as of February 5.

According to Insider Monkey’s database of Q3 2024, 31 hedge funds owned stakes in Dow Inc. (NYSE:DOW), compared with 32 in the previous quarter. The overall value of these stakes is more than $1.2 billion.