Dow Inc.'s (NYSE: DOW) stock price is down 34.2% from its high. The commodity chemicals company now has a price-to-earnings ratio of 5.2, which suggests that investors think earnings will decline and make the valuation look less compelling. 

The low P/E is somewhat surprising, considering that Dow has spent the last few years improving its balance sheet. It also generates plenty of earnings and free cash flow to support its generous dividend. What's more, Dow stock is inexpensive, has a high yield, and is an industry-leading company. All that suggests it might just be a perfect passive income play for long-term investors. 

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Source Fool.com