We bring another dividend GROWTH stock that is putting together a really nice story for dividend investors. This video covers whether this is now a high dividend growth stock or not.
Why do dividends matter? Dividends are one of the best passive income sources. Dividend investing increases your passive income, as you reach financial freedom!
Reference items:
►Fundrise – Dividend Diplomats Use this for Real Estate Investing: https://fundrise.sjv.io/9aJWW
►Dividend Diplomats Stock Portfolios: https://www.dividenddiplomats.com/our-dividend-stock-portfolios/
►Dividend Diplomats Blog: https://www.dividenddiplomats.com/
We head into the Chemical industry, where business is actually doing fairly well. The industry does well when energy does well, thank you almost $5 per gallon at the pump!
Therefore, this chemical company announced big dividend news for passive income investors. What was the news, specifically? Well…
LyondellBasell (LYB) announced not JUST a DIVIDEND INCREASE… BUT… a SPECIAL DIVIDEND of $5.20 per share. Special dividends are definitely not a guaranteed income payment, but companies occasionally do them when business is performing exceptionally well. LyondellBasell is experiencing 40%+ revenue growth and over 20% net income growth, therefore – they are performing well despite record high inflation, labor shortages and supply chain issues.
I am talking about the special dividend so much, I don’t mean to shadow the dividend increase. As a passive income investor, specially by investing into dividend growth stocks, dividend increases are the best. Therefore, not only is LYB sending out a $5.20 special dividend per share, but they also increased the quarterly dividend, going from $1.13 to $1.19; now THAT is what I am talking about.
We also ran LYB through the dividend diplomat stock screener, which includes the following 3 dividend stock metrics:
1.) Price to Earnings Ratio Less than the S&P 500 and the competition
2.) Dividend Payout Ratio Less than 60%. This shows the stock can continue to pay the dividend and increase that passive income stream
3.) Dividend Growth Rate: We want to see a history of the dividend increasing, as well as a high dividend growth rate
**Bonus Metric**: The Dividend Yield, which determines how much you get paid to own the stock!
LyondellBasell (LYB) is really firing on all cylinders, with a price to earnings ratio at 7x earnings, a dividend payout ratio below 30% and a dividend growth streak of over 8 years. Lastly, they’ve been increasing the passive income stream by an average rate of ~6%.
Now, since those metrics look great, I also look at the dividend yield. LYB’s dividend yield is over 4% at the time of the video! WOW! This is after the dividend increase announcement, but is also after LYB has appreciated in value by almost 26% year-to-date, crushing the S&P 500’s negative return thus far of 13%+.
What do YOU think of LYB? Is this a dividend stock to buy NOW after the big dividend news? Are you adding the stock to your watch list? Let us know in the feedback/comments section!
#dividends #stocks #stockstobuytoday #passiveincome #income #energy #Inflation #Investing #BuyTheDip
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As always, we recommend conducting your own research to make your own decisions.
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Thanks guys! Already own it, based on your previous coverage. Great recommendation!
Is the stocks dividend qualified?
Adding to others who mentioned y'all
I started building a position the first time I heard you mention them last year
You should have a meet up where we all buy you guys a beer for the fun and education you deliver
I started this position from a video a while back… glad you guys turned us onto this .. thank you..
How about that HUGE dividend increase from Lowe's?
It’s actually 12 years of dividend growth. And they also paid a special dividend of $2.75 in 2012 and $4.50 in 2011.
As usual great video. But I read LYB is going to exit the refining sector and close its Houston plant at the end of 2023 and with crack spreads at record highs how is this going to impact their earnings going forward?
About a year ago I built exclusively an LYB position in my IRA at the low $90’s. This stock has been terrific in 2022. All smirky smiles as well.
So basically you can buy LYB until 3 June and get a $5.20 discount coupon.
Booyah! Love it. Was fortunate to build a position a few months ago. It pays to pay attention.
Bought this stock earlier this year at $95, the special dividend and dividend increase is Christmas in June. Love it.
Love it. Low PE, GREAT dividend, special dividends. I've been nibbling.
Owned this stock since 2017. Thanks Dividend Diplomats!
My cost basis in LYB is around $70. The special dividend alone represents a return of 7.5% of my original capital. Gotta love dividends!
Great video! Thank you guys! I sold my $LYB after receiving a 0.20 foreign withholding tax on my last dividend payment back in March. $1.34 turned into $1.14. I wasn’t aware that they are a foreign company when I purchased my share. I also learned that the N.V. after their name stands for Naamloze Vennootschap.
Solid video, great beard games going on… I haven't heard of LYB so I will have to do some more research, but always great to add some of these players to the watchlist, thank you!
Heros. Thanks for the information!
Thank you for introducing me to this stock earlier this year. I bought in at $90 and have been very pleased with its performance! Thanks again, guys!
"The number one reason people fail in life is because they listen to their friends, family, and neighbors." –Napoleon Hill
Thanks to the DD's I'm a happy LYB investor. I picked up 90 shares in August 2021after watching your video where you introduced me to the company. averaged down an other 10 shares while it was trading around $90 in November. what a great investment!!
The metrics are insane.
If Lanny ever does a backflip, can we get that on camera?
"Too many of us are not living our dreams because we are living our fears." –Les Brown
I've been saving for a while, so I can invest in stocks, came across a success story of an investors that made up to $700,000 in few months from investing just $250K and I'd really appreciate it if I could get clues and pointers on how to make better profit
According to Elon Musk", Since I’ve been asked a lot: I will always advise, we buy stock in several companies that make products & services that you believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.
"I believe that the only courage anybody ever needs is the courage to follow your own dreams." —Oprah Winfrey
Re: P/E you have to compare apples to apples. What is it relative to it's peers and what is it relative to it's own 5-year average?
I want to thank you guys for all you do for all income investors. I never would have heard of some of these great companies I have holdings in If I hadn't come across your channel (SpartanNash is another one that has destroyed over the last year). Looking through these comments, a lot of us are about to clean up in June due in large part to your content. Like the NWO gentlemen, you have a subscriber and viewer 4 LIFE!!
Nice, I’m in at $94 a share with 30 shares. I wish I had more!
Great vid!
Welcome back brothers 💐🏆💐🏆