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Why NYSE:LYB provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Apr 9, 2024

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.

Understanding NYSE:LYB's Dividend Score

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:LYB has received a 7 out of 10:

  • LYB has a Yearly Dividend Yield of 4.79%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.16, LYB pays a better dividend. On top of this LYB pays more dividend than 90.48% of the companies listed in the same industry.
  • LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
  • LYB has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of LYB is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:LYB

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LYB, the assigned 6 reflects its health status:

  • Looking at the Altman-Z score, with a value of 2.83, LYB is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
  • LYB has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as LYB would need 3.29 years to pay back of all of its debts.
  • LYB has a Debt to FCF ratio of 3.29. This is in the better half of the industry: LYB outperforms 79.76% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LYB was assigned a score of 6 for profitability:

  • LYB has a Return On Assets of 5.70%. This is in the better half of the industry: LYB outperforms 71.43% of its industry peers.
  • LYB has a better Return On Equity (16.31%) than 77.38% of its industry peers.
  • The Return On Invested Capital of LYB (9.68%) is better than 80.95% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LYB is significantly above the industry average of 7.47%.
  • 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.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of LYB


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.