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Dow Chemical stock split
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May 11, 2000: 5:35 p.m. ET
Shares divided 3-for 1; company will also boost dividend, CEO says
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NEW YORK (CNNfn) - Reflecting confidence in its long-term strategy, Dow Chemical Co. on Thursday said it would split its shares 3-for-1 in June, increase its dividend in the third quarter and direct its focus on growth.
William Stavropoulos, chief executive of Dow (DOW: Research, Estimates), a $19 billion developer of chemical, plastic and agricultural products, said the company expects to achieve $60 billion in sales by 2010, with average revenue growth of 8 percent per year.
"These are not pie-in-sky objectives," he told stockholders on Thursday. "With the things we are now putting in place, including ... our pending merger with Union Carbide Corp., plus capacity additions and some price restoration, we are well on track to achieve these goals."
 Midland, Mich.-based Dow Chemical, a component of the Dow Jones Industrial Average, plans to merge with Union Carbide (UK: Research, Estimates), to form the world's second-largest chemical company behind DuPont Co.
He said the company has achieved its goals in the first part of its overall strategy, which was to improve productivity, restructure its portfolio to provide consistency of earnings, and position the company for growth.
"As we move forward, our objective is to be recognized by all of our constituents as a premier, sustainable growth company," said Stavropoulos. "We are moving Dow's center of gravity from a manufacturing company to a science and solutions company -- using our science and technology to advance the essentials of life and to improve the quality of life for people everywhere."
Dividend to increase 15.5 percent
Under the split, Dow stockholders on June 16 will receive two additional shares of stock for each share they own on the record date of May 23. Dow's last stock dividend was in 1989, with a three-for-two common stock split.
The company also announced plans to increase the quarterly dividend by 15.5 percent in the third quarter. The dividend will increase, on a post-split basis, from 29 cents per share to 33.5 cents.
"This stock split, combined with plans to increase the dividend later this year, clearly underscores the Board's confidence in Dow's long-term sustainable growth," said Chief Financial Officer J. Pedro Reinhard.
Shares of Dow Chemical rose 2-7/8 in active trade on Thursday. 
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The Dow Chemical Co.
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