Big Chemical stocks like The Dow Chemical Company (NYSE: DOW) and Dupont (NYSE: DD) have a great deal to offer investors, much like Big Oil stocks such as ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX).
Like Big Oil companies, Big Chemical firms are positioned well to prosper from growth around the world.
Earnings per share are soaring for The Dow Chemical Company. The Wall Street analyst community is just as bullish about the future. Over the next five years, earnings-per-share growth is expected to be in the double digits for The Dow Chemical Company. Dupont is looking close to double digit earnings growth for the next five years, based on analyst projections.
Like Big Oil entities such as Chevron and ExxonMobil, Dow Chemical and Dupont take care of its shareholders with a robust dividend yield.
Chevron has a dividend yield of around 3.3 percent. The dividend yield for ExxonMobil is 2.72 percent. Dow Chemical has a dividend yield of 2.79 percent. For Dupont, the dividend yield is 2.59 percent. Like Big Oil stocks, both Dow Chemical and Dupont have a history of increasing the amount of the dividend to reward long term shareholders with a raise each year simply for owning the stock.
The average dividend yield for a member of the Standard & Poor’s 500 Index (NYSE: SPY) is now under 2 percent.
As blue chip stocks, Dow and Dupont have done well in the bull market.
Dupont is up for the last week, month, quarter, six months, and year of market action. The Dow Chemical Company is also up for the last week, month, quarter, six months, and year of market action (chart below). For 2014, Dow Chemical is up more than 20 percent. Over the same period, Dupont has risen over 8 percent. Due to growth around the world, more gains are expected. The dividend income from each will add to the total return for long term shareholders.