Is Invesco Dow Jones Industrial Average Dividend ETF (DJD) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2024
0mins
Source: NASDAQ.COM
Invesco Dow Jones Industrial Average Dividend ETF (DJD): Launched in December 2015, DJD offers exposure to high-yielding stocks in the Dow Jones Industrial Average with a low expense ratio of 0.07% and a 12-month trailing dividend yield of 2.44%. It has approximately $307.32 million in assets and focuses on the Industrials sector.
Performance and Comparison: DJD has shown an 11.20% return and is up about 20.31% year-to-date as of September 2024. While it provides concentrated exposure with 29 holdings, investors may also consider traditional market cap weighted ETFs like IShares Core S&P 500 ETF (IVV) and SPDR S&P 500 ETF (SPY) for potentially lower costs and risks.
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Analyst Views on DOW
Wall Street analysts forecast DOW stock price to rise
14 Analyst Rating
1 Buy
12 Hold
1 Sell
Hold
Current: 27.710
Low
22.00
Averages
27.83
High
32.00
Current: 27.710
Low
22.00
Averages
27.83
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dow Inc. Stock Fluctuations and Earnings Outlook
- Stock Performance: Dow Inc. (DOW) ended the recent trading session at $27.33, reflecting a -1.37% change, underperforming the S&P 500's daily gain of 0.72%, indicating market concerns about its future performance.
- Monthly Losses: Over the past month, Dow's shares have lost 18.43%, significantly worse than the Basic Materials sector's decline of 5.59%, suggesting a lack of investor confidence in the company's prospects.
- Earnings Outlook: Dow is set to release its earnings report on July 23, 2026, with an expected EPS of $1.28, up 404.76% year-over-year, and projected revenue of $12.01 billion, reflecting an 18.82% increase, which could positively impact its stock price.
- Valuation Analysis: Dow's forward P/E ratio stands at 9.95, below the industry average of 15.82, indicating that its stock may be undervalued, potentially attracting value investors, despite its industry ranking being in the bottom 31% of over 250 sectors.
See More
RBC Downgrades Dow Inc. to Sector Perform with $28 Price Target
- Rating Downgrade Impact: RBC Capital downgraded Dow Inc. from Outperform to Sector Perform, slashing the price target from $51 to $28, reflecting unchanged polyethylene supply and demand dynamics that underpin price weakness, potentially negatively impacting the stock price.
- Earnings Outlook Unchanged: While a price uplift is expected in 2026, the analyst noted that Dow's fundamental earnings backdrop remains unchanged compared to year-end 2025, indicating a lack of structural supply/demand changes since the onset of the U.S.-Iran conflict, which may affect long-term investor confidence.
- Project Cash Pressure: Dow's Alberta cracker project is projected to impose significant cash pressure over the next several years, with a gross capital spending commitment of approximately $7.5 billion and a net spend of $6 billion, including around $1.5 billion in government incentives, with construction planned through 2029, potentially impacting liquidity.
- Market Dynamics Shift: Despite initial expectations for accelerated asset shutdowns in Europe and Asia, major closure announcements appear to have slowed due to an uptick in Chinese exports and CTO production, leading the analyst to suggest that risks are skewed to the downside, potentially causing earnings to step down to 2024 levels in 2027.
See More
Market Capitalization Comparison: Veralto vs. Dow
- Market Cap Comparison: Veralto Corp (Ticker: VLTO) has a market capitalization of $21.61 billion, compared to Dow Inc (Ticker: DOW) at $21.12 billion, indicating Veralto's relative strength in the market, which may attract more investor interest.
- Investor Misconceptions: Many novice investors mistakenly compare company values solely based on stock prices, but market capitalization provides a more accurate assessment of a company's worth, aiding investors in making informed decisions.
- Market Positioning Impact: Market cap not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Stock Performance: At Friday's close, VLTO's stock rose approximately 1.9%, while DOW fell about 1%, reflecting positive market sentiment towards Veralto, which could further enhance its investment appeal.
See More
Dow Inc. Shares Extend Losses Amid Market Concerns
- Stock Price Decline: Dow Inc. shares fell 3.1% on Wednesday, marking the seventh consecutive day of losses and bringing the total decline to approximately 14%, indicating market concerns about future profitability.
- Year-to-Date Performance: Despite a 25% increase in stock price this year, market sentiment may shift due to the reopening of key shipping routes, which could impact future pricing dynamics as Middle Eastern export disruptions ease.
- Supply and Demand Dynamics: The resumption of exports from the Middle East may allow Asian refineries and petrochemical producers to return to normal operations, alleviating shortages and potentially reverting global chemical markets to pre-conflict oversupply conditions, thereby pressuring margins for U.S. commodity chemical producers.
- Outlook Adjustment: Earlier this month, Dow raised its second-quarter outlook, citing supply disruptions linked to the Middle East conflict that could support chemical markets for several quarters, while also emphasizing restructuring, cost-cutting, and productivity initiatives as key drivers for earnings improvement.
See More
Dow Inc Shares Show Oversold Signal with RSI at 28.0
- Oversold Signal: Dow Inc (DOW) shares hit an RSI of 28.0 during Thursday's trading, indicating an oversold condition with a low of $31.3701 per share, suggesting that recent heavy selling may be nearing exhaustion, prompting bullish investors to consider buying opportunities.
- RSI Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 55.0, DOW's 28.0 RSI reflects its weaker market performance, potentially attracting investors looking for a rebound.
- Historical Price Range: DOW's 52-week low is $20.4019 and high is $42.74, with the last trade at $31.73, illustrating the stock's price volatility within its historical range, which may influence investor decisions.
- Market Sentiment Analysis: The current oversold condition may lead investors to reassess DOW's value, especially as the stock approaches its 52-week low, potentially triggering buying interest and impacting future market trends.
See More
Dow Jones Hits All-Time High Amid Fed Expectations
- Dow Performance: The Dow Jones Industrial Average rose about 0.4% on Wednesday, reaching a new all-time high, reflecting investor optimism regarding the Federal Reserve's policy decision, particularly following new Chair Kevin Warsh's first post-meeting remarks.
- Interest Rate Expectations: The market largely anticipates that the Fed will keep interest rates unchanged for the fifth consecutive meeting, providing a stable monetary policy backdrop that supports the Dow's rise and reflects investor confidence in economic prospects.
- Strong Economic Data: U.S. retail sales and pending home sales both exceeded expectations, indicating that economic activity remains resilient despite rising borrowing costs, which offers positive fundamental support for the market.
- Geopolitical Factors: President Trump mentioned the potential for an agreement with Iran, although negotiations are not finalized, adding another layer of consideration for investors that could influence market sentiment.
See More
Dow Inc. Stock Fluctuations and Earnings Outlook
- Stock Performance: Dow Inc. (DOW) ended the recent trading session at $27.33, reflecting a -1.37% change, underperforming the S&P 500's daily gain of 0.72%, indicating market concerns about its future performance.
- Monthly Losses: Over the past month, Dow's shares have lost 18.43%, significantly worse than the Basic Materials sector's decline of 5.59%, suggesting a lack of investor confidence in the company's prospects.
- Earnings Outlook: Dow is set to release its earnings report on July 23, 2026, with an expected EPS of $1.28, up 404.76% year-over-year, and projected revenue of $12.01 billion, reflecting an 18.82% increase, which could positively impact its stock price.
- Valuation Analysis: Dow's forward P/E ratio stands at 9.95, below the industry average of 15.82, indicating that its stock may be undervalued, potentially attracting value investors, despite its industry ranking being in the bottom 31% of over 250 sectors.
See More
RBC Downgrades Dow Inc. to Sector Perform with $28 Price Target
- Rating Downgrade Impact: RBC Capital downgraded Dow Inc. from Outperform to Sector Perform, slashing the price target from $51 to $28, reflecting unchanged polyethylene supply and demand dynamics that underpin price weakness, potentially negatively impacting the stock price.
- Earnings Outlook Unchanged: While a price uplift is expected in 2026, the analyst noted that Dow's fundamental earnings backdrop remains unchanged compared to year-end 2025, indicating a lack of structural supply/demand changes since the onset of the U.S.-Iran conflict, which may affect long-term investor confidence.
- Project Cash Pressure: Dow's Alberta cracker project is projected to impose significant cash pressure over the next several years, with a gross capital spending commitment of approximately $7.5 billion and a net spend of $6 billion, including around $1.5 billion in government incentives, with construction planned through 2029, potentially impacting liquidity.
- Market Dynamics Shift: Despite initial expectations for accelerated asset shutdowns in Europe and Asia, major closure announcements appear to have slowed due to an uptick in Chinese exports and CTO production, leading the analyst to suggest that risks are skewed to the downside, potentially causing earnings to step down to 2024 levels in 2027.
See More
Market Capitalization Comparison: Veralto vs. Dow
- Market Cap Comparison: Veralto Corp (Ticker: VLTO) has a market capitalization of $21.61 billion, compared to Dow Inc (Ticker: DOW) at $21.12 billion, indicating Veralto's relative strength in the market, which may attract more investor interest.
- Investor Misconceptions: Many novice investors mistakenly compare company values solely based on stock prices, but market capitalization provides a more accurate assessment of a company's worth, aiding investors in making informed decisions.
- Market Positioning Impact: Market cap not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Stock Performance: At Friday's close, VLTO's stock rose approximately 1.9%, while DOW fell about 1%, reflecting positive market sentiment towards Veralto, which could further enhance its investment appeal.
See More
Dow Inc. Shares Extend Losses Amid Market Concerns
- Stock Price Decline: Dow Inc. shares fell 3.1% on Wednesday, marking the seventh consecutive day of losses and bringing the total decline to approximately 14%, indicating market concerns about future profitability.
- Year-to-Date Performance: Despite a 25% increase in stock price this year, market sentiment may shift due to the reopening of key shipping routes, which could impact future pricing dynamics as Middle Eastern export disruptions ease.
- Supply and Demand Dynamics: The resumption of exports from the Middle East may allow Asian refineries and petrochemical producers to return to normal operations, alleviating shortages and potentially reverting global chemical markets to pre-conflict oversupply conditions, thereby pressuring margins for U.S. commodity chemical producers.
- Outlook Adjustment: Earlier this month, Dow raised its second-quarter outlook, citing supply disruptions linked to the Middle East conflict that could support chemical markets for several quarters, while also emphasizing restructuring, cost-cutting, and productivity initiatives as key drivers for earnings improvement.
See More
Dow Inc Shares Show Oversold Signal with RSI at 28.0
- Oversold Signal: Dow Inc (DOW) shares hit an RSI of 28.0 during Thursday's trading, indicating an oversold condition with a low of $31.3701 per share, suggesting that recent heavy selling may be nearing exhaustion, prompting bullish investors to consider buying opportunities.
- RSI Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 55.0, DOW's 28.0 RSI reflects its weaker market performance, potentially attracting investors looking for a rebound.
- Historical Price Range: DOW's 52-week low is $20.4019 and high is $42.74, with the last trade at $31.73, illustrating the stock's price volatility within its historical range, which may influence investor decisions.
- Market Sentiment Analysis: The current oversold condition may lead investors to reassess DOW's value, especially as the stock approaches its 52-week low, potentially triggering buying interest and impacting future market trends.
See More
Dow Jones Hits All-Time High Amid Fed Expectations
- Dow Performance: The Dow Jones Industrial Average rose about 0.4% on Wednesday, reaching a new all-time high, reflecting investor optimism regarding the Federal Reserve's policy decision, particularly following new Chair Kevin Warsh's first post-meeting remarks.
- Interest Rate Expectations: The market largely anticipates that the Fed will keep interest rates unchanged for the fifth consecutive meeting, providing a stable monetary policy backdrop that supports the Dow's rise and reflects investor confidence in economic prospects.
- Strong Economic Data: U.S. retail sales and pending home sales both exceeded expectations, indicating that economic activity remains resilient despite rising borrowing costs, which offers positive fundamental support for the market.
- Geopolitical Factors: President Trump mentioned the potential for an agreement with Iran, although negotiations are not finalized, adding another layer of consideration for investors that could influence market sentiment.
See More
