Dow Ups Dividend 14%; Unveils New $5 Bln Tranche To Share Buyback Program

(RTTNews) - Dow Chemical Co.'s (DOW) board has declared a 14 percent increase in its dividend, from $0.37 per share to $0.42 per share in the fourth quarter. This brings the Company's annualized dividend to $1.68 per share. Further, the company announced a new $5 billion tranche to its share repurchase program, bringing the total program to $9.5 billion.

Dow's chairman and chief executive noted, "The actions we are taking to mitigate external volatility, coupled with the ongoing implementation of Dow's strategic growth catalysts and market-aligned business strategy, are delivering consistent results - evidenced by eight consecutive quarters of year-over-year adjusted EPS, EBITDA and EBITDA margin growth and significant increases in cash flow, with more upside to come."

The dividend would be payable on January 30, 2015 to shareholders of record on December 31, 2014, marking the 413th consecutive cash dividend issued by the company. Dow has paid its shareholders cash dividends every quarter since 1912. Since 2009, Dow's dividend has increased by 19 percent on a compound basis.

As announced earlier, the firm has committed to complete its previous $4.5 billion share repurchase program by year-end. This new tranche brings Dow's total target to $9.5 billion, with execution timed to proceeds from portfolio management actions and increases in operating cash flows.