New Markets: Dow Chemical
Dividend Yield: 3.3%
At the turn of the century, the U.S. contributed a whopping 31% of worldwide GDP. More than a decade later, that share has shrunk by nearly 10 percentage points as the output of other countries — such as China — has emerged.
Betting solely on China for this mega-trend, though, doesn’t seem like the best idea considering the country’s recent slowdown — and doesn’t seem like a fair representation of the new world economy.
Instead, a diversified dividend stock like The Dow Chemical Co. (DOW) seems like a better fit.
Last year, DOW got 36% of its sales from North America; 34% from Europe, the Middle East and Africa; 18% from the Asia Pacific; and 12% from Latin America. That means has exposure to fast-growing markets on top of established ones. Plus, Dow Chemical has its hand in businesses ranging from electronics to water to energy — clear areas of demand for developing markets.
So far this year, DOW shares are beating the market with 25% gains — and even after that run, this dividend stock still yields a solid 3.2% and hasn’t missed a payment since its first dividend in 1911.
That’s a pretty solid track record to lean against while the rest of the world continues buying Dow products.