HUN Stock: A Contrarian Play with an 11% Dividend Yield
August 13, 2025
Why Huntsman Stock Is Down, But Not Out
Take a look at Huntsman Corporation (NYSE:HUN).
HUN stock isn’t winning any popularity contests among investors and analysts at the moment. Since the beginning of the year, the stock price has tumbled over 50%. This has happened on the back of declining industrial demand, cyclical pressures, and macro uncertainties.
Could the stock go down even more?
If you pay attention to the HUN stock chart, you’ll see that it’s painting the picture of a very bearish outlook.
The stock chart currently suggests that short-term and long-term trends are pointing downwards. Momentum indicators suggest that investors are actively selling, so they could take HUN stock much lower.
Wall Street analysts aren’t a fan of Huntsman’s stock at this time either.
The Goldman Sachs Group has a “Sell” rating on HUN stock, cutting its price target. Wells Fargo & Company, UBS Group, Citigroup, and Morgan Stanley have lowered their targets on Huntsman’s stock price as well. (Source: “The Goldman Sachs Group Lowers Huntsman (NYSE:HUN) Price Target to $10.00,” MarketBeat, August 10, 2025.)
Now, with all this said, for an income investor who has some room in their portfolio for contrarian ideas, HUN stock could be worth a close look. There’s a rock-solid business in place, a double-digit dividend yield, and a management team that’s trying.
What Does Huntsman Corporation Do?
Huntsman Corporation is a global player in specialty and differentiated chemicals that power products consumers use every day. The company is split into three main segments: Polyurethanes, Performance Products, and Advanced Materials.
The Polyurethanes segment makes materials that show up in everything from energy-saving insulation and lightweight car parts to furniture cushions, adhesives, and even the soles in sneakers.
Via Performance Products, Huntsman produces key ingredients like amines and maleic anhydride. These compounds help make coatings last longer, adhesives stick better, and fuels run cleaner, plus they play a big role in oilfield technology and industrial manufacturing.
Huntsman’s Advanced Materials segment offers high-performance resins and adhesives. These materials are used in aerospace, automotive, and other industries. (Source: “Profile,” Huntsman Corporation, last accessed August 11, 2025.)
HUN Stock Down, But There’s Still a Business Here
Sure, HUN stock has taken a beating lately, but don’t confuse a rough patch in the share price for a business that’s falling apart. There’s a real, established operation here.
Even with Wall Street analysts trimming their price targets, they still expect Huntsman to generate about $5.77 billion in revenue in 2025 and cross the $6.0-billion mark in 2026. (Source: “Analysis,” Yahoo! Finance, last accessed August 11, 2025.)
The management here is really trying hard. While presenting the company’s financial performance for the second quarter of 2025, Peter R. Huntsman, chairman, president, and chief executive officer, said, “…through our cash management activities, we generated positive cash flow during the second quarter. As we have stated in the past, protecting the balance sheet remains a priority in addition to focusing on cash generation as we navigate the Company through the current environment.” (Source: “Huntsman Announces Second Quarter 2025 Earnings,” Huntsman Corporation, July 31, 2025.)
Also, remember the nature of Huntsman’s industry. Specialty chemical businesses aren’t built overnight. On the contrary, they require years of expertise, a massive capital investment, and a deep network of customer relationships to build. Huntsman has those in place, in addition to having a global footprint.
Why is this important?
The company’s infrastructure, scale, and specialized product lines give it a competitive position that’s hard for newcomers to challenge.
In short, the struggling HUN stock price shouldn’t automatically be taken as a sign of a failing business. It’s quite possible investors are overreacting here.
A Double-Digit Dividend Yield
There’s something income investors should pay close attention to: HUN stock currently pays a dividend of $0.25 per share each quarter—that’s $1.00 annually.
Despite the bumps in its business it has faced recently, Huntsman has kept that payout steady. In fact, not too long ago, management announced a third-quarter dividend of $0.25, showing that, even in the face of headwinds, the company is committed to rewarding its shareholders.
At the current price, this puts the dividend yield at just over 11%.
Chart Courtesy of StockCharts.com
For investors who rely on cash flow, this kind of consistency matters. Keeping dividends the same signals that management sees value in maintaining the payouts, even when the headlines aren’t favorable.
The Lowdown on HUN Stock
When it comes to HUN stock, it’s easy to see why some investors have turned away. The share price has been under pressure, Wall Street analysts have been lowering their targets, and the broader chemicals sector isn’t exactly the market’s favorite right now.
But here’s the thing: beneath the noise, Huntsman Corporation is still very much in business. Even with headwinds, analysts still expect the company to generate $5.77 billion in revenue in 2025 and over $6.0 billion in 2026.
And for income investors, the appeal gets stronger: HUN stock pays $0.25 per share each quarter for an annualized payment of $1.00 per share. The yield is elevated for now because stock price has dropped, not because management is overextending itself or there are cash flow issues. In fact, cash flows at the company have improved in the recent quarter.
Lastly, there’s heavy institutional ownership in HUN. Over 90% of all outstanding shares are held by institutional investors. The top three holders are The Vanguard Group Inc, BlackRock Inc, and AQR Capital Management, LLC. (Source: “Holders,” Yahoo! Finance, last accessed August 11, 2025.)
