April 20, 2025 a 02:46 am
LYB: Dividend Analysis - LyondellBasell Industries N.V.
LyondellBasell Industries N.V. presents a strong dividend profile with a competitive yield and a solid history of dividend payments. Despite a high payout ratio, the company maintains a steady growth trajectory, making it a potentially rewarding investment for income-focused investors.
📊 Overview
LyondellBasell operates within a robust sector with a current dividend yield of 7.00%. The dividend per share stands at $5.29, supported by a 15-year-history of consistent payments.
| Metric | Value |
|---|---|
| Sector | Chemicals |
| Dividend Yield | 7.00% |
| Current Dividend Per Share | $5.29 |
| Dividend History | 15 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The dividend history of LyondellBasell reflects its commitment to shareholders. Maintaining consistent dividends over 15 years, with no recent cuts, enhances investor confidence.
| Year | Dividend per Share |
|---|---|
| 2025 | $1.34 |
| 2024 | $5.27 |
| 2023 | $4.94 |
| 2022 | $9.90 |
| 2021 | $4.44 |
📈 Dividend Growth
Examining LyondellBasell's dividend growth over the past years shows a modest upwards trend, crucial for investors seeking income appreciation.
| Time | Growth |
|---|---|
| 3 years | 5.88% |
| 5 years | 4.89% |
The average dividend growth is 4.89% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratios are vital indicators of dividend sustainability. LyondellBasell's elevated EPS-based payout ratio suggests potential stress on earnings to maintain payouts, while FCF-based ratio presents more stable cash flow management.
| Key Figure | Ratio |
|---|---|
| EPS-based | 125.82% |
| Free Cash Flow-based | 86.29% |
The high payout ratio of 125.82% (EPS) reflects earnings pressure while the 86.29% (FCF) shows adequate cash flow support.
✅ Cashflow & Capital Efficiency
A comprehensive analysis of cash flow metrics reflects the company's operational efficiency and liquidity. LyondellBasell shows a robust Free Cash Flow Yield and Earnings Yield, indicating strong cash generation capacity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 15.82% | 11.04% | 15.58% |
| Earnings Yield | 5.63% | 6.84% | 14.30% |
| CAPEX to Operating Cash Flow | 0 | 30.98% | 30.89% |
| Stock-based Compensation to Revenue | 0.22% | 0.22% | 0.14% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 69.02% | 69.11% |
The data signifies a stable cash flow and well-managed capital indicating healthy operational efficiency.
⚖️ Balance Sheet & Leverage Analysis
Analyzing leverage and liquidity metrics assesses the company's financial flexibility. Despite high debt ratios, LyondellBasell maintains adequate liquidity as evidenced by the current and quick ratios.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.99 | 1.01 | 1.04 |
| Debt-to-Assets | 34.83% | 35.14% | 36.23% |
| Debt-to-Capital | 49.97% | 50.14% | 51.09% |
| Net Debt to EBITDA | 3.45 | 2.07 | 1.81 |
| Current Ratio | 1.83 | 1.84 | 1.75 |
| Quick Ratio | 1.13 | 1.17 | 1.04 |
| Financial Leverage | 2.87 | 2.86 | 2.88 |
The balance sheet indicators show manageable leverage and solid liquidity, pointing to a stable financial position.
📉 Fundamental Strength & Profitability
LyondellBasell's profitability metrics indicate an efficient utilization of assets. Its stable ROE and operating margins affirm its strong market positioning.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.91% | 16.35% | 30.77% |
| Return on Assets | 3.80% | 5.71% | 10.68% |
| Net Margin | 3.37% | 5.14% | 7.69% |
| EBIT Margin | 5.17% | 7.55% | 10.03% |
| EBITDA Margin | 8.95% | 11.28% | 12.10% |
| Gross Margin | 11.32% | 12.79% | 13.09% |
| R&D to Revenue | 0.33% | 0.32% | 0.25% |
Profitability metrics indicate strong asset use and competitive market margins.
Stock Price Development 🏛️
🔥 Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 5 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 4 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 29/40
🎯 Rating
Considering the solid dividend yield, history, and financial health, LyondellBasell Industries N.V. is an attractive option for dividend-seeking investors, provided one is comfortable with the elevated payout ratios.