5 Best Dividend Stocks to Buy According to Morgan Stanley’s Quant Screen

3. LyondellBasell Industries N.V. (NYSE:LYB)

Dividend Yield as of September 27: 6.51% 

Total Expected Return: 41%

Number of Hedge Fund Holders: 37

LyondellBasell Industries N.V. (NYSE:LYB) is a leading European chemicals company that has operations worldwide. The company has been growing its dividends for roughly a decade and has a 5-year dividend CAGR of 5,8% and an annual payout ratio of 27.5%. On August 19, LyondellBasell Industries N.V. (NYSE:LYB) announced that its board of directors declared a quarterly cash dividend of $1.19 per share, up 5.3% from its prior dividend of $1.13. The dividend was payable on September 6 to investors of record on August 29. As of September 27, the stock is offering a forward dividend yield of 6.51% and has free cash flows of $6.15 billion.

This September, Wells Fargo analyst Michael Sison revised his price target on LyondellBasell Industries N.V. (NYSE:LYB) to $100 from $115 and maintained a buy-side Overweight rating on the shares. Morgan Stanley analysts expect LyondellBasell Industries N.V. (NYSE:LYB) to gain 41% over the next couple of months and are recommending it as a top dividend stock to buy.

At the close of Q2 2022, 37 hedge funds disclosed ownership of stakes in LyondellBasell Industries N.V. (NYSE:LYB). These funds held collective stakes of $953 million in the company. This is compared to 32 positions in the previous quarter with stakes worth $744 million. The hedge fund sentiment for the stock is positive.

As of June 30, Eagle Capital Management is the top shareholder in LyondellBasell Industries N.V. (NYSE:LYB) with stakes worth $358 million.