Jan. 14 at 8:55 PM
LyondellBasell currently offers the highest dividend yield in the S&P 500 at around 10.5%, but investors are skeptical about its sustainability due to a severe downturn in the chemicals sector. Over the past 12 months, shares have fallen more than 30% as both sales and earnings declined, prompting concerns that the company may eventually cut its dividend—especially following a payout reduction by rival Dow.
Analysts forecast a challenging fourth quarter, with sales expected to drop nearly 30% and net income declining over 70%, which could increase pressure to conserve cash. Despite this, heavy short interest and a rebound in early 2026—up more than 20%—have temporarily boosted the stock. Some strategists highlight it as a potential rebound play due to past underperformance, yet overall Wall Street sentiment remains cautious. Only two of 23 analysts rate it a Buy, and a dividend reduction could trigger further selling from income-focused investors.
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