Should I Buy Eastman Chemical (EMN)? Finance YouTuber Analysis

The YouTuber recommends Eastman Chemical due to its strong cash flow, low payout ratio (36% vs. 42% sector average), and focus on Specialty Chemicals. He forecasts 13.6% annual dividend growth over the next three years, driven by expected EPS growth and a potential increase in the payout ratio to match the sector average.

“I'm forecasting up to 13.6 dividend growth annually over the next three years now that's from eight percent expected growth in earnings per share from 7.83 last year to 9.86 a share by 2025 and then catch up to that payout ratio from the current 36 percent to the sector average of 42 percent for another 5.6 potential increase per year.”

The YouTuber suggests Eastman Chemical, despite its cyclical nature, due to its 3.5% dividend and 13 years of increases. The company has refocused on Specialty Chemicals, with a new facility generating revenue and a cost reduction plan expected to boost profitability. Its low payout ratio (48%) compared to peers and strong share repurchase program provide flexibility to maintain the dividend even in a downturn.

“Eastman Chemical ticker emn is a little more cyclical than the other stocks on the list but has a rock solid 3.5 dividend and 13 years of increasing payments”