HOUSTON and LONDON – LyondellBasell (NYSE: LYB), a global chemical company, has declared a quarterly dividend increase of 7 percent, raising the payout to $1.34 per share. This enhancement, announced today, will be distributed to shareholders on June 10, 2024, and applies to those on the company’s records by the ex-dividend date of June 3, 2024.
The decision to increase the dividend reflects the company’s confidence in its strategic direction and its commitment to delivering shareholder value. CEO Peter Vanacker commented on the dividend hike as a testament to LyondellBasell’s robust performance and its 14th consecutive year of annual dividend growth.
LyondellBasell is recognized as a significant player in the chemical industry, focusing on sustainable solutions through advanced technology and strategic investments. The company is one of the largest producers of polymers and a leader in polyolefin technologies. It manufactures a diverse range of products that cater to critical sectors, including transportation, food safety, water treatment, and healthcare.
This dividend announcement is based on a press release statement from LyondellBasell. The company’s actions indicate a positive outlook and a strategic approach to financial stewardship, aiming to reward its investors while navigating the dynamic market landscape.
InvestingPro Insights
LyondellBasell’s (NYSE: LYB) recent dividend increase announcement is underpinned by solid financial metrics, as evidenced by the latest data from InvestingPro. With a market capitalization of $31.72 billion, the company showcases a commitment to shareholder returns, supported by a dividend yield of 5.13% as of the first quarter of 2024. This is notably higher than many of its industry peers, reflecting the company’s robust strategy for income-focused investors.
The P/E ratio, a measure of a company’s current share price relative to its per-share earnings, stands at an adjusted 13.62 for the last twelve months as of Q1 2024, indicating a potentially favorable valuation compared to the broader market.
Moreover, the company’s revenue for the same period is reported at $40.78 billion, despite a revenue growth contraction of -14.21%. This suggests that while LyondellBasell faces challenges in expanding its top line, it remains a significant player with substantial revenue generation capabilities.
An InvestingPro Tip highlights the importance of considering a company’s PEG ratio, which for LyondellBasell is currently at -0.5. This metric can provide insight into the company’s future earnings growth potential relative to its P/E ratio, which may be of interest to investors looking for growth opportunities in addition to yield. For those interested in further analysis, InvestingPro offers 15 additional tips to help make informed investment decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors may also note the company’s solid gross profit margin of 12.35% over the last twelve months as of Q1 2024, reinforcing the efficiency of LyondellBasell’s operations in a competitive sector. With the next earnings date slated for August 2, 2024, stakeholders will be keen to see if these financial fundamentals will translate into continued positive performance for the remainder of the year.
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