12 Best High Dividend Stocks Under $100

4. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 31

Dividend Yield as of January 24: 6.77%

Share Price as of January 24: $41.37

Dow Inc. (NYSE:DOW) is an American 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. The company operates in three primary segments: packaging and specialty plastics, industrial intermediates and infrastructure, and performance materials and coatings. Like other companies in commodity-driven sectors, such as oil and gas or gold mining, Dow has no control over commodity prices. Instead, it concentrates on managing costs to produce products as efficiently as possible. In the past 12 months, the stock has declined by over 22%.

Dow Inc. (NYSE:DOW) is currently facing challenges from a global economic slowdown, which is impacting commodity and specialty chemical companies, petrochemical firms, and refiners. Many major refining companies have seen their previous gains diminish, and other chemical companies have also experienced declines in their stock values. Due to these difficulties, the company’s quarterly earnings failed to meet investors’ expectations. The company generated an operating cash flow of $800 million, down $858 million from the same period last year. The decline was primarily attributed to the increased inventory levels required to support sales growth and disruptions in the supply chain due to labor issues. Moreover, the company’s free cash flow fell to $64 million, down from $1.06 billion in the same quarter the previous year.

Despite these setbacks, Dow Inc. (NYSE:DOW) is a reliable dividend payer. In the most recent quarter, the company distributed $490 million to shareholders through dividends. In addition, it has been making regular dividend payments to shareholders since 1912. It currently offers a quarterly dividend of $0.70 per share and has a dividend yield of 6.77%, as of January 24.

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.