8 Best Dividend Leaders to Buy According to Wall Street Analysts

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

Upside Potential as of December 19: 30.7%

LyondellBasell Industries N.V. (NYSE:LYB) is a multinational chemical industry company that specializes in plastics, chemicals, and refining. Despite facing challenging global macroeconomic conditions, the company was able to capitalize on its strong North American operations, benefiting from favorable ethylene margins in the region. Demand for polyethylene and polypropylene in North America rose by over 7% and 4%, respectively, through September, compared to 2023 levels. In the third quarter, the company’s volumes were bolstered by high operating rates at its crackers, enabling it to take advantage of improved margins from merchant ethylene sales. Its quarterly revenue totaled $10.32 billion, marking a 2.8% decline from the same period last year.

In addition to reporting strong earnings, LyondellBasell Industries N.V. (NYSE:LYB) took a major step forward in its sustainability efforts by starting construction on its MoReTec-1 facility in Germany. This project highlights the company’s dedication to advancing the industry’s transition to a circular economy.

LyondellBasell Industries N.V. (NYSE:LYB) currently pays a quarterly dividend of $1.34 per share and has a dividend yield of 7.35%, as of December 19. The company continues to be a popular choice for dividend-focused investors, backed by its strong cash reserves that enable substantial dividend payouts. In the third quarter of 2024, the company returned $479 million to shareholders through dividends and share buybacks. It also generated $670 million in operating cash flow for the quarter.

The company’s strong cash position has allowed it to increase its payouts for 14 consecutive years. In the past five years, it has raised its payouts at an annual average rate of nearly 5%. According to analysts, the stock has an upside potential of 30.7%.

LyondellBasell Industries N.V. (NYSE:LYB) was included in 38 hedge fund portfolios at the end of Q3 2024, as per Insider Monkey’s database. The stakes held by these funds have a total value of over $546.2 million.