The new dividend will cost about $1 billion a year. Dow is expected to generate free cash flow of about $500 million in 2025, and $600 million in 2026, according to FactSet. That’s a far cry the $5 billion-plus annual average from 2020 to 2023.

Dow’s stock tumbles toward a five-year low after dividend was cut in half, and quarterly losses were much wider than expected.