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Dow and rival Dupont are facing investor
pressure to raise shareholder returns by divesting businesses
that are exposed to swings in prices of commodities.
Dow, which is being pushed by hedge fund manager Daniel Loeb to
split up, said it would complete its previous $4.5 billion share
repurchase program by the end of the year.
The latest buyback plan brings Dow's total share repurchase
program to $9.5 billion.
The company also boosted its quarterly dividend to 42 cents per
share from 37 cents.
Dow, which has been paying cash dividends every quarter since
1912, said the dividend would be payable on Jan. 30 to
shareholders on record as of Dec. 31.
Dow has narrowed its focus to packaging, electronics and
agriculture and is looking to raise as much as $6 billion from
asset sales.
The company also plans to cut fixed costs by $1 billion over the
next three years.
Loeb has asked Dow to separate its commoditized raw material
units from specialty chemicals businesses, but the company has
said that keeping all its units together helps lower costs.
Dow Chemical's shares were up 1 percent at $50 before the bell.
Up to Tuesday's close, the stock had risen nearly 25 percent
over the past year.
(Reporting by Swetha Gopinath in Bangalore; Editing by Saumyadeb
Chakrabarty)
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