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LyondellBasell (LYB) Increases Quarterly Dividend by 7.6%

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LyondellBasell Industries N.V. (LYB - Free Report) recently announced that its Board has declared a quarterly dividend of $1.13 per share, reflecting a 7.6% increase over the company's first-quarter 2021 dividend.

The dividend will be paid out on Jun 14, 2021 to shareholders of record as of Jun 7, 2021, with an ex-dividend date of Jun 4, 2021. This dividend increase positions LyondellBasell to post its 11th straight year of annual dividend growth in 2021.

LyondellBasell's strategic investments have increased its earnings power at all points in the cycle in the past three years. The increase in dividend reflects confidence in its ability to consistently deliver high returns for its shareholders, the company noted.

Shares of LyondellBasell have surged 64.7% in the past year compared with 54.7% rise of the industry.

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It is committed toward delivering greater value to shareholders by leveraging healthy cash flows. At the end of the first quarter, LyondellBasell had cash and liquid investments of $1.8 billion. The company also paid out dividends worth $352 million in the first quarter.

The company, in its last earnings call, noted that it anticipates operating at nearly full capacity globally to meet strong demand that is expected to persist owing to low inventories and maintenance downtime across industry. Strong North American integrated polyethylene margins are expected to continue as U.S. producers look to fulfil domestic order backlogs, rebuild inventories and serve export demand.

In the second half of 2021, it is expected that increased mobility will drive higher demand for gasoline and jet fuel, improving margins for its Refining and Oxyfuels & Related Products businesses. Moderating feedstock costs are also expected to increase second-quarter margins in the Advanced Polymer Solutions segment. The company looks forward to further debt reduction in the near future.

 

Zacks Rank & Key Picks

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .

Dow has a projected earnings growth rate of around 261.5% for the current year. The company’s shares have surged 68.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 137.2% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 69.5% in the past year. It currently flaunts a Zacks Rank #1.

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