DuPont (DD) has had a nice year in 2013, but it hasn’t been all gumdrops and rainbows. DuPont, like a lot of Dow components, has been soft since the beginning of August thanks to recent earnings declines and a sluggish global economic outlook.
Still, it’s hard to bet against DuPont as a long-term play. The company has a five-year growth rate of over 15% in its revenue, and has paid dividends since 1904. And what with a diverse line of chemicals spanning agriculture, electronics and biosciences this company isn’t overly dependent on any one sector to find success.
There’s always risk of a pull-back should industrial customers turtle up amid economic headwinds, but the roughly $5 billion in annual operating cash flow and a dividend payout ratio of less than 50% of FY2013 earnings mean that this company (and its dividends) aren’t going anywhere.