Ping to Tim. Read your comments on the 3/28 thread RE: “Investment-wise?? I’d recommend LYB, or WLK...” and thought you might be interested in this:
“LyondellBasell Industries NV (LYB) is a Dutch-based chemicals company and the world’s largest producer of polypropylene. It pays a dividend yield of 2.5% on a payout ratio of 26%. The stock has returned 56.4% over the past 12 months. Its beta is 2.53, which implies that the stock’s return could be 2.53 times the market’s return. Improving global economic environment has had a positive effect on the company’s performance. Last year, the company’s EBITDA and EPS expanded by 5% and 32%, respectively. Analysts forecast the firm’s long-term EPS CAGR at 10.4%. LYB is positive about its outlook, expecting to benefit from low ethane and propane costs and the positive momentum in U.S. ethylene, propylene, and polyethylene segments. With robust free cash flow, LYB has been returning excess cash to shareholders through special dividends and share buybacks. The firm plans to seek approval to repurchase 10% of its issued share capital. LYB’s prudent financial management is also noteworthy, as the company has reduced its total debt by 40% since 2010. This and the company’s growth and cash flow records have earned it an investment-grade rating. Given the stock’s forward P/E of 10.4x, it can be considered a good value investment. The stock is popular with Tiger Cub hedge funder Rob Citrone.”
From article: 5 High-Beta Dividend Stocks To Try To Beat The Market
http://seekingalpha.com/article/1314181-5-high-beta-dividend-stocks-to-try-to-beat-the-market
Thanks... I agree.
LYB was BANKRUPT just a few years ago... it’s been a long climb back. I think that is still part of the reason they have been undervalued.
They are a money printing machine in the USA. My only concern about them is... they do still have significant assets in Europe, which.. is a basket case in chemicals. Even though THEY also have abundant shale gas available. The green-euro-weenies won’t let them get it.
Westlake will likely have a poor quarter in the 1st.. since they had one Ethylene plant down for three months for an expansion... and, a new chlorine plant under construction. Could be a little buying opportunity coming...if they drop on earnings announcement.