LyondellBasell Shares Yield 12% After 10% Year-To-Date Gain
Shares of chemical producer LyondellBasell yield 12%, according to S&P Global Market Intelligence and MarketSurge, compared with a 2.3% average for dividend-paying S&P 500 stocks. The stock has climbed 10% year-to-date, outpacing peers as income seekers target higher yields.
1. Exceptional Yield and Year-to-Date Performance
LyondellBasell Industries N.V. shares are delivering an annualized dividend yield of approximately 12%, based on the most recent quarterly dividend of $1.37 per share. This figure stands in stark contrast to the average 2.3% yield across S&P 500 dividend payers. The stock has also outperformed broader markets, rising roughly 10% so far this year, as investors seek high-income opportunities in a declining interest-rate environment.
2. Notable Institutional and Insider Transactions
During the third quarter, Asset Management One Co. Ltd. trimmed its position in LyondellBasell by 18.4%, selling 29,192 shares and ending the period with 129,571 shares valued at $6.354 million. Other institutional moves included Crews Bank & Trust adding 175 shares (up 16.4% to 1,245 shares), New York Life Investment Management increasing by 193 shares (0.5% to 38,521 shares), Central Pacific Bank Trust Division rising by 200 shares (4.3% to 4,830 shares), State of Michigan Retirement System adding 200 shares (0.3% to 78,165 shares) and Cooper Financial Group acquiring 211 shares (4.3% to 5,146 shares). Overall, institutional and hedge funds now hold 71.2% of outstanding stock. In insider activity, EVP Kimberly A. Foley purchased 5,661 shares at an average cost of $43.56 for a total of $246,593, boosting her stake to 67,688 shares valued at approximately $2.95 million.
3. Recent Financial Results and Outlook
In the third quarter, LyondellBasell reported adjusted earnings of $1.01 per share, surpassing consensus estimates by $0.21. Revenue for the period was $7.73 billion, beating analyst projections by $320 million, though down 10.2% compared with the prior year. Return on equity stood at 7.5%, while the net margin was negative 3.7%. For the current fiscal year, consensus forecasts call for earnings near $6.31 per share. The company’s debt-to-equity ratio was 1.00, with a current ratio of 1.57 and a quick ratio of 0.93.
4. Analyst Ratings and Price Targets
Wall Street sentiment is mixed: two firms maintain Buy ratings, sixteen rate the shares Hold, and four assign Sell recommendations, resulting in an average analyst rating of “Reduce.” Mizuho lowered its target from $52 to $49 with a Neutral stance, BMO Capital Markets reaffirmed an Underperform rating and cut its target from $48 to $36, Rothschild & Co Redburn trimmed its Buy target from $80 to $75, and Goldman Sachs reduced its Sell target from $59 to $51. The consensus price target across the coverage universe stands at $53.33.