Dow announces new $3 billion share repurchase program; declares quarterly dividend of 70 cents per share

Rhea-AI Summary

Dow (NYSE: DOW) has approved a new share buyback program for repurchasing up to $3 billion of its common stock, reinforcing its commitment to shareholder value. Additionally, the company declared a quarterly dividend of 70 cents per share, payable on June 10, 2022, with a record date of May 31, 2022. This dividend marks Dow's 443rd consecutive payment. Since April 2019, Dow has returned $8.4 billion to shareholders through buybacks and dividends, exceeding its goal of returning 65% of operating net income over economic cycles.

Positive

• Approval of a new share buyback program worth $3 billion, enhancing shareholder value.
• Declaration of a quarterly dividend of 70 cents per share, marking the 443rd consecutive payment.

Negative

• None.

MIDLAND, Mich., April 13, 2022 /PRNewswire/ -- Dow (NYSE: DOW) announced today that its board of directors has approved a new share buyback program for the repurchase of up to $3 billion of the Company's common stock. Additionally, Dow has declared a dividend of 70 cents per share, payable June 10, 2022, to shareholders of record on May 31, 2022. This marks the 443^rd consecutive dividend payment by the Company or its affiliates since 1912. 

"These actions reflect our continued focus to deliver leading cash flow generation and value growth as well as our ongoing commitment to disciplined and balanced capital allocation, where shareholder remuneration remains a key priority for Dow," said Jim Fitterling, Dow chairman and CEO. "Since spin in April 2019, we have returned a total of $8.4 billion to shareholders through our share repurchases and industry-leading dividend – well above our target, which is to return 65% of operating net income to shareholders across the economic cycle."

The $3 billion share repurchase program announced today does not have an expiration date and is additive to the current outstanding program, which has approximately $775 million of authorization remaining that the Company intends to repurchase by mid-2022.  

About Dow
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $55 billion in 2021. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

For further information, please contact:

Investors:                                                                   
Pankaj Gupta                                                             
+1 989-638-5265                                                       
pgupta@dow.com                                                     

Media:
Kyle Bandlow   
+1 989-638-2417
kbandlow@dow.com

Twitter: https://twitter.com/DowNewsroom 
Facebook: https://www.facebook.com/dow/ 
LinkedIn: http://www.linkedin.com/company/dow-chemical 
Instagram: http://instagram.com/dow_official 

Cautionary Statement about Forward-Looking Statements

Certain statements in this report are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; the continuing global and regional economic impacts of the coronavirus disease 2019 ("COVID-19") pandemic and other public health-related risks and events on Dow's business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflict between Russia and Ukraine; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe; size of the markets for Dow's products and services and ability to compete in such markets; failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war including the ongoing conflict between Russia and Ukraine; weather events and natural disasters; disruptions in Dow's information technology networks and systems; and risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

 

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SOURCE The Dow Chemical Company

FAQ

What is the amount of Dow's new share buyback program?

Dow has approved a new share buyback program for up to $3 billion.

When will Dow's dividend be paid?

The dividend will be paid on June 10, 2022, to shareholders of record on May 31, 2022.

How much has Dow returned to shareholders since April 2019?

Since April 2019, Dow has returned a total of $8.4 billion to shareholders.

What is Dow's dividend per share for this quarter?

Dow has declared a quarterly dividend of 70 cents per share.