5 Best Chemical Stocks To Buy Now

3. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 43

Dow Inc. (NYSE:DOW) is one of the best chemical stocks to invest in. The materials science company provides solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. Dow Inc. (NYSE:DOW) operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. It is one of the top chemical stocks to monitor. 

On October 13, Dow Inc. (NYSE:DOW) declared a $0.70 per share quarterly dividend, in line with previous. The dividend is distributable on December 9, to shareholders of the company as of November 30. The dividend yield on November 21 came in at 5.55%. 

Fermium Research analyst Frank Mitsch on October 21 maintained a Buy recommendation on Dow Inc. (NYSE:DOW) but lowered the price target on the shares to $50 from $60 after the company posted Q3 results that featured a 39% sequential decline in EBITDA. However, his “oft-cited thesis” for Dow is one for dividend yield and not short-term capital gain, which has not changed as he sees the safety of the dividend and a present yield of nearly 6%.

Among the hedge funds tracked by Insider Monkey, 43 funds reported owning stakes worth $709.8 million in Dow Inc. (NYSE:DOW) at the end of Q3 2022, compared to 45 funds in the prior quarter worth $871.5 million. Richard S. Pzena’s Pzena Investment Management is the largest stakeholder of the company, with 7.5 million shares valued at $330 million.