Breakup has created three solid buys

Article Excerpt

In 2019, the old DowDuPont (New York symbol DWDP) split itself into three separate, more-focused companies—DuPont, Dow and Corteva. All three are up since the split, as investors prefer pure-play companies over conglomerates that hold a variety of businesses. Moreover, we feel each of the three companies will offer solid gains over the next several years as the economy continues to rebound from the pandemic. DUPONT DE NEMOURS INC. $76 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 496.8 million; Market cap: $37.8 billion; Dividend yield: 1.9%; Takeover Target Rating: Medium; www.dupont.com) makes chemicals and other materials for a wide variety of industrial clients. DuPont recently cancelled its $5.2 billion acquisition of Rogers Corporation (New York symbol ROG), which makes engineered materials for the aerospace, defence, automotive and medical industries. That’s because it could not secure the necessary regulatory approvals. As a result, the company paid a $162.5 million termination fee to Rogers. Meantime, DuPont continues to sell its less-important operations. In November…