DOW and Huntsman face dividend risks despite cuts, with negative $1.4 billion free cash flow and persistent losses.
DOW and Huntsman (HUN) slashed dividends by 50% and 65%, respectively, yet remain unsustainable due to negative $1.4 billion in free cash flow and recurring losses. Huntsman’s quarterly payout fell from $0.25 to $0.0875 in Q4 2025, but its $0.35 annualized rate still exceeds earnings, with eight straight quarters of negative EPS through Q1 2026.
Huntsman’s stock trades at $10.81, down nearly 49% over five years, reflecting persistent profitability challenges. DOW’s dividend cut failed to address its cash burn, raising concerns about long-term payout viability. Both companies highlight risks for income investors targeting high yields without sufficient earnings or cash flow coverage.
Analysts warn that dividends reliant on debt or asset sales rather than recurring profits are vulnerable to further reductions, pressuring share prices.