11% dividend?
LyondellBasell ($LYB) is today viewed as a company that links the traditional chemical industry with the need for a modern transformation toward sustainability and the circular economy. Analytical views have long agreed that the firm primarily benefits from its deep technological base in the field of polymers. Production capacity, process efficiency, and the technical quality of its products are among the main factors that keep it in a strong position in global competition.
Analyses often emphasize the extent to which LyondellBasell’s materials are used in everyday life. Polyolefins and other products from this company are part of packaging, medical devices, automotive components, and a range of technical solutions across industrial sectors. This broad impact creates a stable demand base even during periods of economic fluctuation.
A significant theme that regularly appears in evaluations of the company is its approach to plastic recycling and innovations supporting the circular economy. Although this is a gradual, long-term process, analysts appreciate that the company invests in the development of recycling technologies significantly more than is common in the industry. Given rising regulatory requirements and pressure to reduce environmental burden, this direction appears key to future competitiveness.
I sold this about three years ago for just over $90 — that's quite a drop :) Similar companies fortunately don't appeal to me at all anymore; I don't see any big moat there, for example compared to DOW. The dividend is irrelevant here: the stock would be -50% over 10 years without it and -12% with it. The payout ratio has been quite high in recent years, growth fairly average, and if it weren't for that special dividend I wouldn't have made much from it.
An 11% dividend looks attractive, but do you know what their payout ratio is? Such a high dividend can be quite a problem for some companies.
I have quite a sizable position, bought at a very good price, so in a few days I’ll receive a quarter of a dividend that’s over 12%, and if the price drops by about 3% after Monday’s ex‑date I’ll use that dividend to buy more. As for the sustainability of the dividend level, I don’t see a big risk since they’ve also reserved funds for buybacks. And by the way, a few days ago—on November 12—one of the executive directors bought $250,000 worth.