Dow Chemical (NYSE: DOW) Has the Right Formula

When looking for stocks to buy that match Money Morning Chief Investment Strategist Keith Fitz-Gerald's concept of "glocals," I couldn't do any better than the Dow Chemical Company (NYSE: DOW).

Keith often recommends "glocal" stocks to buy to Money Morning readers because they have fortress-like balance sheets, experienced management, and globally recognized brands backed up with highly localized product offerings. Many pay above average income too, which is always nice.

Here's how Dow Chemical fits the "glocal" criteria that Keith has laid out:

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1. It's large: Dow Chemical has a market cap of more than $46 billion. It is the largest seller of chemicals in the United States. The items it produces are the necessary feedstock (or inputs) that go into almost every product we use in our daily lives, whether we realize it or not. It manufactures more than 5,000 products and employs approximately 54,000 people.
2. It has global operations and a local presence: More than two-thirds of Dow Chemical's revenues are generated in foreign markets, and nearly half of the company's assets are held abroad. In 2014, the company will begin construction of a new ethylene facility in Texas. Combined with other expansion projects in the Gulf Coast, Dow foresees increases in earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $2.5 billion once the new projects are completed by 2016/2017.
3. It profits from emerging market growth: In the most recently reported quarter, Dow Chemical continued to show strength in the emerging markets of Latin America and Asia-Pacific, where volumes increased by 5% and 3% respectively. The company is focused on expanding further into Asia. It has entered a joint venture with Saudi Arabia's Aramco to construct what is believed to be the largest petrochemical facility in the world. One of the goals Dow Chemical has for this Saudi Arabian plant is to sell half of its production to the Asia-Pacific region. The plant is slated to be completed by 2016 when it will generate $10 billion in annual revenue.
4. Most of its products are a "need" rather than a "want": Of the 5,000 goods Dow Chemical produces, you'd be hard pressed to find the few that are not essential. Virtually every industry - from plastics to transportation to electronics to clothing to food - would come to a grinding halt if Dow Chemical wasn't there to supply the necessary materials.

But even with all this current success, here's why I still consider Dow Chemical a growth company...