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LyondellBasell Hikes Dividend, Gets Nod for Share Repurchase
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LyondellBasell (LYB - Free Report) declared that its Supervisory Board has authorized its management to increase quarterly dividend to 90 cents per share, up about 5.9% over its first-quarter 2017 dividend. The dividend is payable on Jun 12 to shareholders on record as of Jun 5, 2017 and with an ex-dividend date of Jun 1. This marks the 8th hike in cash dividends since 2011.
According to CEO, Bob Patel, the dividend hike reflects the company’s commitment to provide strong returns to shareholders by generating solid cash flows through market cycles, as it remains committed to deliver greater value to its shareholders through leveraging healthy cash flows.
The company’s shareholders have also approved a new share repurchase program in the Annual General Meeting held on May 24, authorizing LyondellBasell to repurchase up to 10% of its shares over the next 18 months. The repurchase will be executed from time to time through privately negotiated transactions or open market operations.
However, the company also mentioned that the timing and amount of future repurchases and dividends are subject to factors including general economic conditions, market conditions, appropriate legal requirements and other corporate considerations.
LyondellBasell has roughly 401 million outstanding shares as of May 22, 2017. The company, in 2016, returned $4.3 billion to shareholders in the form of dividends and share buybacks. It bought back 37 million shares in 2016 and also bought back 1.5 million shares in first-quarter 2017. Share buybacks and dividends totaled $0.5 billion in the quarter.
LyondellBasell’s shares fell around 11.5% over the past three months, underperforming the Zacks categorized Chemicals-Diversified industry’s 0.5% gain.
LyondellBasell saw lower profits in first-quarter 2017, hurt by charges related to debt repayment. Revenues rose year over year on gains in most segments. Adjusted earnings missed the Zacks Consensus Estimate while sales beat.
The company, in its first quarter earnings call, said that the global olefin and polyolefin industry conditions remained favorable in April. With a lighter maintenance schedule, the company expects to benefit from the full availability of its global assets in the long run.
LyondellBasell is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. The company’s ethylene expansion initiatives should boost capacity and add to its earnings.
However, the company remains exposed to pricing pressure and macroeconomic uncertainties and volatility across end-use markets in serves.
Huntsman has an expected long-term earnings growth of 7%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
Chemours has an expected long-term earnings growth of 15.5%.
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LyondellBasell Hikes Dividend, Gets Nod for Share Repurchase
LyondellBasell (LYB - Free Report) declared that its Supervisory Board has authorized its management to increase quarterly dividend to 90 cents per share, up about 5.9% over its first-quarter 2017 dividend. The dividend is payable on Jun 12 to shareholders on record as of Jun 5, 2017 and with an ex-dividend date of Jun 1. This marks the 8th hike in cash dividends since 2011.
According to CEO, Bob Patel, the dividend hike reflects the company’s commitment to provide strong returns to shareholders by generating solid cash flows through market cycles, as it remains committed to deliver greater value to its shareholders through leveraging healthy cash flows.
The company’s shareholders have also approved a new share repurchase program in the Annual General Meeting held on May 24, authorizing LyondellBasell to repurchase up to 10% of its shares over the next 18 months. The repurchase will be executed from time to time through privately negotiated transactions or open market operations.
However, the company also mentioned that the timing and amount of future repurchases and dividends are subject to factors including general economic conditions, market conditions, appropriate legal requirements and other corporate considerations.
LyondellBasell has roughly 401 million outstanding shares as of May 22, 2017. The company, in 2016, returned $4.3 billion to shareholders in the form of dividends and share buybacks. It bought back 37 million shares in 2016 and also bought back 1.5 million shares in first-quarter 2017. Share buybacks and dividends totaled $0.5 billion in the quarter.
LyondellBasell’s shares fell around 11.5% over the past three months, underperforming the Zacks categorized Chemicals-Diversified industry’s 0.5% gain.
LyondellBasell saw lower profits in first-quarter 2017, hurt by charges related to debt repayment. Revenues rose year over year on gains in most segments. Adjusted earnings missed the Zacks Consensus Estimate while sales beat.
The company, in its first quarter earnings call, said that the global olefin and polyolefin industry conditions remained favorable in April. With a lighter maintenance schedule, the company expects to benefit from the full availability of its global assets in the long run.
LyondellBasell is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. The company’s ethylene expansion initiatives should boost capacity and add to its earnings.
However, the company remains exposed to pricing pressure and macroeconomic uncertainties and volatility across end-use markets in serves.
LyondellBasell Industries NV Price and Consensus
LyondellBasell Industries NV Price and Consensus | LyondellBasell Industries NV Quote
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the basic materials space include Huntsman Corporation (HUN - Free Report) , ArcelorMittal (MT - Free Report) and The Chemours Company (CC - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Huntsman has an expected long-term earnings growth of 7%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
Chemours has an expected long-term earnings growth of 15.5%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>