Ride The Sector Cycle To Double-Digit Returns: Eastman

Treading Softly Investing Group Follow Summary Eastman Chemical Company stands out in the cyclical chemical sector for its disciplined management and consistent dividend growth, outperforming peers like DOW and LYB. EMN reported Q2 EPS of $1.97 and revenue of $2.51B, beating estimates, with management expecting Q3 EPS to nearly match Q2 despite historical seasonality. The Renew business line doubled revenue year-over-year, and EMN maintains margin resilience by passing feedstock costs to customers, supporting ongoing free cash flow. Trading below its 10-year average PE, EMN offers an 18.75% total return potential by 2027, with a December dividend hike anticipated and continued buyback guidance. Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More » Thomas Barwick/DigitalVision via Getty Images Did you ever make a ramp to have as a jump when you were riding your bicycles? My friends and I used to love riding our bicycles all over town. I lived in a time This article was written by Treading Softly 5.14K Followers Follow Scott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return. Analyst’s Disclosure: I/we have a beneficial long position in the shares of EMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings team Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.