Analyzing NYSE:LYB's Dividend Potential.

Discover LYONDELLBASELL INDU-CL A (NYSE:LYB)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:LYB showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Assessment of NYSE:LYB

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:LYB has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 5.00%, LYB is a good candidate for dividend investing.
• LYB's Dividend Yield is rather good when compared to the industry average which is at 3.40. LYB pays more dividend than 90.48% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.40, LYB pays a better dividend.
• LYB has been paying a dividend for at least 10 years, so it has a reliable track record.
• LYB's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:LYB has earned a 6 out of 10:

• The Altman-Z score of LYB (2.80) is better than 77.38% of its industry peers.
• The Debt to FCF ratio of LYB is 3.29, which is a good value as it means it would take LYB, 3.29 years of fcf income to pay off all of its debts.
• LYB has a better Debt to FCF ratio (3.29) than 79.76% of its industry peers.

Profitability Examination for NYSE:LYB

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LYB has achieved a 6:

• LYB's Return On Assets of 5.70% is fine compared to the rest of the industry. LYB outperforms 72.62% of its industry peers.
• With a decent Return On Equity value of 16.31%, LYB is doing good in the industry, outperforming 78.57% of the companies in the same industry.
• LYB's Return On Invested Capital of 9.68% is amongst the best of the industry. LYB outperforms 82.14% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for LYB is significantly above the industry average of 7.29%.
• The 3 year average ROIC (14.60%) for LYB is well above the current ROIC(9.68%). The reason for the recent decline needs to be investigated.
• LYB has a better Profit Margin (5.13%) than 60.71% of its industry peers.

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Check the latest full fundamental report of LYB for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.