We not too long ago printed 12 Newest Shares On Jim Cramer’s Radar. Dow Inc. (NYSE:DOW) is among the shares Jim Cramer not too long ago mentioned.
Dow Inc. (NYSE:DOW)’s shares are among the many worst performers on the inventory market in 2025 as they’ve misplaced 40% year-to-date. The agency has struggled as a consequence of sluggishness within the broader industrial sector and worries concerning the influence of tariffs on international commerce. Dow Inc. (NYSE:DOW) additionally shocked traders in July when it slashed its dividend in half and revealed that its packaging income had dropped by 8.9% to $5 billion. Cramer isn’t a fan of the inventory:
“Dow, can I’ve a cause? It’s such as you’ve received to present me a cause to advocate the inventory. You may’t simply say what we’re going to purchase it as a result of it’s low. Trigger a variety of that’s going to derived by China and I’m not seeing it.”
After Dow Inc. (NYSE:DOW) halved its dividend, Cramer was stuffed with phrases for the agency:
“A dividend sucker is born each minute. Final week, chemical large Dow reduce its dividend in half, taking it from 70 cents per quarter to 35 cents, saving about $1 billion yearly… I heard that the dividend would shield the inventory. When Dow’s dividend yield was 5%, the presumption was that you just had to purchase. Why? As a result of that was higher than the 10-year treasury yield. See, folks stated you have been mainly being paid to attend for the chemical enterprise to show round…
Copyright: bialasiewicz / 123RF Inventory Picture
Now, I’ve at all times championed the notion that we must be in search of what I name unintentional excessive yields, shares which have fallen so low, not based mostly on the corporate, however on a market-wide transfer. Now, these shares will be terrific investments, however was Dow an unintentional high-yielder? In the event you have a look at its historical past, that Dow reduce its dividend in March of 2009 from 42 cents to fifteen cents. So it’s not like they’ve a protracted monitor document of consistency. No. The lesson of Dow is that if you happen to see a yield that’s too excessive, it’s not an indication of security, it’s an indication of hazard…
Whereas we acknowledge the potential of DOW as an funding, our conviction lies within the perception that some AI shares maintain higher promise for delivering greater returns and have restricted draw back threat. In case you are in search of a particularly low cost AI inventory that can be a serious beneficiary of Trump tariffs and onshoring, see our free report on the greatest short-term AI inventory.