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?
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
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.