This chemical company gives up its title as the top dividend yielder, so it can save cash

By Tomi Kilgore

LyondellBasell is effectively halving its dividend, as there is still no sign of a recovery in the chemicals market

LyondellBasell cut its dividend in half, as the long downturn in the chemicals industry looks set to continue.

LyondellBasell said Friday that it was slashing its dividend in half in an effort to save cash, as the chemicals market looks set to continue weakening.

While the dividend cut will knock the company (LYB) off its perch, as having the highest yielding stock in the S&P 500 index SPX, it will still be in the top 20, and will be above that of its rivals. The cut also comes about seven months after rival Dow (DOW) did the same thing.

LyondellBasell's stock slipped 0.8% in premarket trading. That puts it on track for a sixth-straight loss, which would be the longest such streak since the six-day stretch that ended Aug. 4, 2025.

As of Thursday's close, LyondellBasell's stock had a dividend yield of 9.90%, above the yield of second place Conagra Brands's stock (CAG) of 7.49%.

On Friday, the company said it was cutting its next quarterly dividend payment to 69 cents a share from $1.37 a share in the fourth quarter. Shareholders of record on March 2 will be paid the new dividend on March 9.

The company, which said it was mired in "one of the longest downturns in our history" for the chemicals business, said it was recalibrating its dividend, as it prioritizes safety and reliability, while it also looks to cut more costs.

"With markets expected to remain challenged, we have made the decision to recalibrate the dividend to better position the company to thrive once markets recover," said CEO Peter Vanacker.

There was no guidance given on when that recovery might start.

Based on Thursday's stock closing price of $55.33, the new annual dividend rate implies a dividend yield of 4.99%, which would the 17th highest yield in the S&P 500. In comparison, the implied yield for the S&P 500 was 1.17%, according to FactSet.

Dow's stock was further down, as it yielded 4.46% as of Thursday's close. Dow had announced in July 2025 that it was cutting its dividend by 50%, as the industry downturn has resulted in "lower-for-longer" earnings.

Among other chemical companies, Eastman Chemical's stock (EMN) yielded 4.31% as of Thursday's close.

LyondellBasell's move comes as earnings per share in 2025 dropped to $1.70 from $6.40 in 2024, to mark the fourth straight year of earnings declines, from an EPS peak of $18.19 in 2021.

The stock has rallied 27.8% in 2026 through Thursday, but was still down 28.7% over the past 12 months. Dow shares have dropped 20.7% over the past year, while the S&P 500 has gained 12.2%.

-Tomi Kilgore

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02-20-26 0814ET