Dow Jones Review: DuPont

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out DuPont. This company is up a solid 8% in 2012 compared with a roughly 7% gain for the Dow average as a whole.

David and John thought DuPont would outperform the Dow over the next five years. So far, it’s roughly the same as the index. Despite its satisfactory performance so far, the company has been feeling the impact of slowing global demand, as many of its businesses have seen declining sales. Its chemicals business, which competes with companies like Dow Chemical and Titanium Metals, saw volumes decrease. On the other hand, its agricultural segment, going up against Monsanto, has been performing quite nicely. Sales have been rising recently. David really likes DuPont’s dedication to innovation. Obviously, a global slowdown won't help the company, but its innovative culture should help it beat the market over the next five years.

DuPont is one of the more attractive dividend payers in the Dow, If you'd like to learn more about some additional high-yielding companies,The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Titanium Metals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 31, 2012, at 4:56 PM, funfundvierzig wrote:

    DuPont, "dedication to innovation"?

    Putting aside Management bombast and slick PR, let's look at reality. In the past twelve months, DuPont's big touted "INNOVATION", Imprelis has turned out to be a $billlion bust! Advertised falsely as eco-SAFE, "low-impact", and banned by the U. S. EPA, this lawn herbicide has killed and damaged hundreds of thousands of mature trees throughout the county. So far DuPont has been forced to take Imprelis charges against earnings of one-half $billion, or $490 million to be exact, with $265 million in Imprelis charges for Q2 2012.

    In seeds, DuPont lags superior-managed Monsanto; in ag chemicals, DuPont lags Syngenta; in food additives and enzymes, DuPont lags Novozyme; and in chemicals, DuPont lags Dow Chemical and BASF, which is circa three times the size of the much shrunken DuPont. As for the commodity chemical, TIO2, DuPont is the world's leading producer.

    ...funfun..

  • Report this Comment On July 31, 2012, at 5:02 PM, funfundvierzig wrote:

    When was the last time you heard of a high-profit blockbuster product or technology breakthrough coming out of the once fabled research and development labs of E. I. du Pont de Nemours and Company?

    Sorry, but carpets and clothes made out of costly corn, along with corn cob "gasoline" do not exactly make the bar! The business model embraced by DuPont Management, FOOD-to-FUEL & FABRICS, is totally out of touch with the reality of today's looming global food crisis and soaring grain prices.

    Merely the observations of one individual retail investor with both long and short positions in DD shares...funfun..

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