We still like them five years after split

Article Excerpt

Like GE (see page 41), in 2019 industrial conglomerate DowDuPont broke itself into three new “pure-play” firms—DuPont, Dow and Corteva (see box). We still like their long-term prospects, and see all three as buys. DUPONT DE NEMOURS INC. $78 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 430.0 million; Market cap: $33.5 billion; Dividend yield: 1.9%; Takeover Target Rating: Medium; www.dupont.com) makes chemicals and other materials for manufacturers in the electronics, transportation, building and construction, and healthcare industries. DuPont continues to sell less-important businesses as it simplifies its operations. For example, in November 2023, it sold 80.1% of its Delrin business for $1.28 billion. Manufacturers use Delrin’s main product to replace metal parts in gears, door systems and conveyor belts. In the quarter ended March 31, 2024, DuPont’s overall revenue fell 2.9%, to $2.93 billion from $3.02 billion a year earlier. That’s mainly due to lower demand for water purification products as customers use up their existing inventories. However, sales of materials…