Here's Why DuPont Fell 40.5% in 2019
Shares of DuPont (NYSE: DD) fell 40.5% last year, according to data provided by S&P Global Market Intelligence. That looks terrible next to the 28.8% gain of the S&P 500 in 2019, but the dividend stock actually performed better than it appears.
That's because the entity now known as DuPont was the old DowDuPont -- on paper, anyway. When it completed the spinoffs of the materials-science unit Dow Inc and agricultural-sciences unit Corteva Agriscience last year, each transaction had the expected effect of lowering the market valuation of DowDuPont. That shows up in stock charts as a sudden drop in value.
If investors only look at the stock's performance from the first day the new DuPont became a separate company (June 3) to the end of 2019, then shares lost 5.6% of their value, compared to a gain of 18.9% for the S&P 500 in that span. That said, investors had their reasons for selling the stock at the end of 2019.
Source Fool.com
