LyondellBasell Industries NV's Dividend Analysis
Assessing the Sustainability and Prospects of LYB's Dividends
LyondellBasell Industries NV (NYSE:LYB) recently announced a dividend of $1.25 per share, payable on 2024-03-11, with the ex-dividend date set for 2024-03-01. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into LyondellBasell Industries NV's dividend performance and assess its sustainability.
What Does LyondellBasell Industries NV Do?
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LyondellBasell is a leading petrochemical producer with a significant presence in the United States, Europe, and Asia. As the world's largest producer of polypropylene and a major producer of polyethylene and propylene oxide, LyondellBasell plays a critical role in manufacturing chemicals used in a wide range of consumer and industrial products. The majority of the company's production is derived from its extensive North American operations.
A Glimpse at LyondellBasell Industries NV's Dividend History
LyondellBasell Industries NV has been a model of consistency, maintaining a regular dividend payment record since 2011, with dividends distributed quarterly. The company has not only consistently paid dividends but has also increased them annually since 2011, earning it the title of a dividend achievera prestigious recognition for companies that have increased their dividends annually for at least 13 consecutive years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down LyondellBasell Industries NV's Dividend Yield and Growth
As of the latest data, LyondellBasell Industries NV boasts a trailing dividend yield of 4.98% and a forward dividend yield of 5.04%, signaling an anticipated increase in dividend payments over the next 12 months. Over the past three years, the company's dividend growth rate was 5.60%, which dips slightly to 4.30% over a five-year period. Over the past decade, the annual dividends per share growth rate has been an impressive 8.00%. Reflecting on these figures, the 5-year yield on cost for LyondellBasell Industries NV stock stands at approximately 6.15%.
The Sustainability Question: Payout Ratio and Profitability
To gauge the sustainability of its dividends, it's crucial to examine LyondellBasell Industries NV's payout ratio. The dividend payout ratio stands at 0.64 as of 2023-12-31, indicating that a substantial portion of earnings is retained for future growth and to cushion against downturns. The company's profitability rank is an impressive 8 out of 10, reflecting strong earnings potential compared to peers. Consistent positive net income over the past decade bolsters its financial stability.
Growth Metrics: The Future Outlook
LyondellBasell Industries NV's growth rank is an optimistic 8 out of 10, indicating a robust growth trajectory. The company's revenue per share and 3-year revenue growth rate of 14.90% per annum outperform approximately 66.6% of global competitors, demonstrating a solid revenue model. Its 3-year EPS growth rate of 12.00% per annum surpasses roughly 50.95% of global competitors, while the 5-year EBITDA growth rate of -0.90% outperforms about 24.95% of global competitors, highlighting a mixed but generally positive growth outlook.
Conclusion: Evaluating LYB's Dividend Prospects
In conclusion, LyondellBasell Industries NV's track record of consistent and growing dividend payments, coupled with a reasonable payout ratio and high profitability rank, presents a compelling case for dividend sustainability. The company's solid growth metrics further reinforce the potential for ongoing dividend payments. Investors seeking stocks with strong dividend profiles may find LYB an attractive option. For those interested in exploring other high-dividend yield stocks, GuruFocus Premium offers a comprehensive High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
