This stock offers investors growth and income potential. Dow Inc. (NYSE: DOW) was formed as a result of the merger of Dow and DuPont in 2017 and the subsequent spin-off 2019. The company provides materials science solutions for consumer care, infrastructure and packaging markets in North America, Europe, the Middle East and elsewhere.
Its Packaging & Specialty Plastics segment provides ethylene and propylene and aromatic products, as well as polyethylene, polyolefin elastomers, ethylene vinyl acetate and ethylene propylene diene monomer rubbers. The Industrial Intermediates & Infrastructure segment offers ethylene oxides, propylene oxide, propylene glycol and polyether polyols, aromatic isocyanates and polyurethane systems, coatings, adhesives, sealants, elastomers and composites. The Performance Materials and Coatings segment provides architectural paints and coatings, and industrial coatings that are used in maintenance and protective industries, wood, metal packaging, traffic markings, thermal paper and leather, as well as performance monomers and silicones, standalone silicones and home and personal care solutions.
Dow stock investors receive a 6.32% dividend. The $52 price objective that comes with the Jefferies Buy rating compares to the $42.68 consensus target and to Friday’s close at $43.59 a share.
This energy giant is another safer long-term play for conservative investors. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
This was an outstanding short earlier in the year, especially when oil futures cratered to literally below zero, but one would think hedge funds are keeping a close eye on this position because if the economy opens up even some, the benchmark price could go back above the $50 level or higher.
The company pays investors a huge 8.45% dividend, which probably will continue to be defended. The BofA Securities Buy rating comes with a huge $77 price target. The consensus target is $47.95, and Exxon stock closed Friday at $41.01.
This is another solid way for more conservative accounts to play the energy sector. Marathon Petroleum Corp. (NYSE: MPC) is one of the largest independent petroleum refining and marketing companies in the United States.
Until just recently, the company operated approximately 2,750 retail sites under the Marathon and Speedway brands. In addition, it operates a logistics network of pipelines, barges, trucks and terminals that store and transport crude and products.
Earlier in August, the company announced it would sell Speedway to 7-11 in an all-cash deal valued at $21 billion, or $16.5 billion after-tax. The sale transforms the company’s balance sheet and creates options to revisit the corporate structure of MPLX. Many across Wall Street feel that with Speedway removed, the dislocation in refining value becomes even more transparent as the company trades much cheaper than its industry peers do.
Shareholders receive a 6.53% dividend. The Goldman Sachs has a Buy rating and a $44 price target, though the consensus is higher at $48.71. Marathon Petroleum stock closed most recently at $35.40 per share.
It should be noted that any or all these companies could at some point cut their dividends, but with that in mind, investors have a chance to buy blue-chip sector leaders at discount pricing with huge payouts. Even if the recovery in the share prices takes a while, the high dividends will make the wait more than tolerable.