1. LyondellBasell Industries N.V. (NYSE:LYB)
Dividend Yield as of December 20: 7.29%
Number of Hedge Fund Holders: 38
LyondellBasell Industries N.V. (NYSE:LYB) is an American multinational chemical company incorporated in the Netherlands. The company operates globally across six segments – Olefins and Polyolefins, Intermediates and Derivatives, Advanced Polymer Solutions, Refining, and Technology. It produces and markets a variety of products, including polyethylene, polypropylene, propylene oxide, and advanced polymers, while also refining high-sulfur crude oil and developing chemical process technologies. LyondellBasell Industries N.V. (NYSE:LYB) is one of the best European stocks to buy for dividend investors.
LyondellBasell Industries N.V. (NYSE:LYB) delivered a solid performance in the third quarter despite challenging market conditions, maintaining strong safety standards, and advancing its long-term strategy. The company’s total recordable incident rate of 0.13 reflects its “GoalZERO” commitment to safety, surpassing industry benchmarks. Earnings for the quarter were $1.88 per share with EBITDA of $1.2 billion, supported by strong ethylene margins and improvements in its Americas Olefins and Polyolefins segment.
LyondellBasell generated $670 million in cash from operations, converted EBITDA to cash at 77%, and maintained a robust balance sheet with $2.6 billion in cash and $7.3 billion in liquidity. Despite weaker profits, the company returned $479 million to shareholders through dividends and buybacks while investing $368 million in capital projects. Its long-term strategy aims to build a profitable Circular & Low Carbon Solutions business, targeting an additional $1 billion EBITDA annually by 2030.
The company’s recent achievements include starting construction on the MoReTec-1 advanced recycling facility in Germany, supported by a €40 million EU Innovation Fund grant. This plant, expected to begin operations in 2026, will produce high-value circular polymers with reduced carbon footprints. LyondellBasell Industries N.V. (NYSE:LYB) remains on track to close its refinery by early 2025, transitioning from low-margin businesses to sustainable solutions.
As per Insider Monkey’s third-quarter hedge fund data, LYB was owned by 38 funds, compared to 41 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 864,370 shares worth nearly $83 million.
Overall, LyondellBasell Industries N.V. (NYSE:LYB) ranks first on our list of the best European stocks. While we acknowledge the potential of LYB to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LYB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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