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Is LyondellBasell’s Dividend Yield the Best among Its Peers?

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LyondellBasell’s dividend yield

Investors looking for a long-term investment usually prefer stocks with a good dividend yield and good dividend growth. The dividend yield is what investors get in return for every dollar they invest in a company’s equity.

LyondellBasell increased its second quarter dividend to $0.90 per share in May 2017. With LyondellBasell continuing to maintain the same dividend rate, we can expect the company to pay a dividend of $3.55 per share. As of September 7, 2017, LyondellBasell’s current dividend yield stood at ~3.90%. Its peers Huntsman (HUN), Eastman Chemical (EMN), and Westlake Chemical (WLK) have current dividend yields of 1.90%, 2.40%, and 1.10%, respectively. LyondellBasell’s dividend yield is higher than its peers primarily due to its higher dividend growth and lower growth in its stock price. Since 2011, LyondellBasell’s dividend yield has varied from 2.50% to 4.50%. Its current dividend yield is higher than the yield on one-year Treasury notes, which makes it as an attractive investment option for long-term investors.

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Dividend payout

At the end of 2Q17, LyondellBasell’s dividend payout was 36.40%. However, its dividend payout rose from 29.60% in 2013 to its current dividend payout of 36.40%. A lower payout indicates that the company is retaining more earnings for future expansion and other financing activities.

Investors looking to invest indirectly in LyondellBasell can consider the iBillionaire Index ETF (IBLN). IBLN has invested 4.0% of its portfolio in LyondellBasell as of September 7, 2017.

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