Analyzing NYSE:LYB's Dividend Potential.

Our stock screener has spotted LYONDELLBASELL INDU-CL A (NYSE:LYB) as a good dividend stock with solid fundamentals. NYSE:LYB shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Assessment of NYSE:LYB

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:LYB has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 7.08%, LYB is a good candidate for dividend investing.
• LYB's Dividend Yield is rather good when compared to the industry average which is at 3.24. LYB pays more dividend than 92.77% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.28, LYB pays a better dividend.
• LYB has been paying a dividend for at least 10 years, so it has a reliable track record.
• The dividend of LYB is growing, but earnings are growing more, so the dividend growth is sustainable.

Exploring NYSE:LYB's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:LYB was assigned a score of 5 for health:

• LYB has a Altman-Z score of 2.60. This is in the better half of the industry: LYB outperforms 74.70% of its industry peers.
• LYB's Debt to FCF ratio of 7.09 is fine compared to the rest of the industry. LYB outperforms 62.65% of its industry peers.
• LYB has a Current Ratio of 2.13. This indicates that LYB is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NYSE:LYB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:LYB has earned a 6 out of 10:

• Looking at the Return On Assets, with a value of 5.75%, LYB belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 15.61%, LYB belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
• With a decent Return On Invested Capital value of 7.86%, LYB is doing good in the industry, outperforming 77.11% of the companies in the same industry.
• LYB had an Average Return On Invested Capital over the past 3 years of 14.60%. This is significantly above the industry average of 6.59%.
• The last Return On Invested Capital (7.86%) for LYB is well below the 3 year average (14.60%), which needs to be investigated, but indicates that LYB had better years and this may not be a problem.
• The Profit Margin of LYB (5.26%) is better than 62.65% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of LYB for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.