Workflow
Chemical
icon
Search documents
3 Big Dividends That Could Be at Risk and 1 That Isn't
The Motley Fool· 2025-09-23 08:24
Core Viewpoint - High dividend stocks can enhance portfolio returns, but some may represent yield traps due to significant share price declines, increasing the risk of dividend cuts [1][2] At-Risk Dividend Companies LyondellBasell - Current yield is 10.4% but has faced a 96.7% drop in trailing 12-month net income over the past three years and a 91.6% decline in free cash flow to $453 million [4][6] - The company’s annual dividend payouts total $1.72 billion, raising concerns about sustainability given its cash reserves of $1.7 billion [6][7] - A "Cash Improvement Plan" has been initiated, but reliance on borrowing to maintain dividends is not sustainable [7][8] Dow - Current yield is 5.8%, with earnings and free cash flow turning negative in the most recent quarter [9] - The dividend yield exceeded 10% as share prices fell over 60%, leading to a cut in quarterly dividends from $0.70 to $0.35 per share [10] - Further cuts may be necessary if the industry slump continues [10] UPS - Current yield is 7.8%, with net income down 50% and free cash flow down 65% over the last three years [11] - Dividend payouts of $5.4 billion exceed trailing cash flow of $3.5 billion, raising concerns about the sustainability of dividends [12] - The company has a cash reserve of $6.3 billion, but this may not be sufficient to avoid a dividend cut [12] Safe Dividend Company MPLX - Current yield is 7.6%, with net income and free cash flow growing over the past three years [13][15] - The company has a distributable cash flow that is 1.5 times higher than its dividend payouts, providing ample coverage for potential business downturns [15] - MPLX offers a more secure dividend option compared to LyondellBasell, Dow, or UPS [16]
LyondellBasell's Massive 10% Yield Is A Buy (NYSE:LYB)
Seeking Alpha· 2025-09-22 19:26
Group 1 - LyondellBasell Industries N.V. offers a high dividend yield of 11% despite facing an industry downturn in the chemical sector [1] - The company is part of a broader trend affecting its peers in the chemical industry, indicating potential challenges ahead [1] Group 2 - The article highlights the focus on company cash flows and access to capital, which are critical for evaluating investment opportunities [1] - The investing group mentioned provides insights into various sectors, including energy midstream and commercial mREITs, which may be relevant for investors [1]
LyondellBasell's Massive 10% Yield Is A Buy
Seeking Alpha· 2025-09-22 19:26
Group 1 - LyondellBasell Industries N.V. offers a high dividend yield of 11% despite facing an industry downturn in the chemical sector [1] - The company is part of a broader trend affecting its peers in the chemical industry, indicating potential challenges ahead [1] Group 2 - The article highlights the focus on company cash flows and access to capital, which are critical for evaluating investment opportunities [1] - The investing group mentioned provides resources such as a "Best Opportunities" List and coverage of various sectors, including energy midstream and commercial mREITs [1]
FMC Corporation: Undervalued Chemical Giant With A 6% Dividend Yield (NYSE:FMC)
Seeking Alpha· 2025-09-16 06:57
Group 1 - The article discusses the expansion of coverage to the chemical industry, indicating a belief that valuation models applicable to other sectors can also be used here [1] - The investing group, The Aerospace Forum, focuses on identifying investment opportunities in the aerospace, defense, and airline sectors, leveraging data-informed analysis [1] - The analyst provides context to industry developments and their potential impact on investment theses, emphasizing the importance of understanding trends [1] Group 2 - The article highlights the availability of data analytics monitors for investors, which can enhance decision-making processes [1] - It is noted that the analyst has no current positions in the companies mentioned, ensuring an unbiased perspective [1]
Bear of the Day: Ashland (ASH)
ZACKS· 2025-09-12 11:10
Core Insights - Ashland Inc. is facing a challenging macroeconomic environment, with expected earnings decline of 18.9% in fiscal 2025 [1][9] - The company has a market capitalization of $2.4 billion and operates in over 100 countries across various markets [1] Financial Performance - In fiscal Q3 2025, Ashland reported earnings of $1.04, missing the Zacks Consensus Estimate by $0.11 [2] - Sales fell 15% year-over-year to $463 million, impacted by portfolio optimization which reduced sales by approximately $53 million, or 10% [3] - Excluding optimization effects, sales declined by 5% [3] - All main segments experienced falling sales: Life Sciences down 17% to $162 million, Personal Care down 16% to $147 million, Specialty Additives down 13% to $131 million, and Intermediates down 8% to $33 million [4] Outlook and Estimates - Ashland updated its fiscal 2025 outlook, indicating a stable but subdued macroeconomic environment with mixed demand trends across segments [5] - Analysts have cut earnings estimates for fiscal 2025 from $3.77 to $3.61, reflecting an 18.9% decline from last year's earnings of $4.45 [7] - For fiscal 2026, estimates have also been reduced from $4.71 to $4.39 [7] Market Performance - Ashland's shares have declined 21.2% year-to-date, underperforming the S&P 500, which is up 12.5% [11] - The company trades with a forward P/E of 14.7, indicating potential value, but has a high PEG ratio of 3.8, suggesting it may not be cheap by growth metrics [13][15] Additional Insights - The company is benefiting from foreign exchange tailwinds and a $30 million restructuring program expected to generate $7.5 million in savings in Q4 [6]
Stocks Rise as Data Seal Sept. Fed Cut | Closing Bell
Youtube· 2025-09-11 20:49
Market Overview - The U.S. stock market is experiencing its broadest rally since late May, with record highs across major indices including the Dow Jones Industrial Average, S&P 500, NASDAQ, and Russell 2000 [2][9] - The market is pricing in the possibility of three interest rate cuts this year and potentially six cuts by 2026, although caution is advised ahead of comments from Federal Reserve Chair Jay Powell [6][5] Company Highlights - Angel Studios, known for religious films like "Sound of Freedom," went public and rang the bell at the NYSE [8] - Rent the Runway shares surged by 30% during the regular session but fell in after-hours trading after reporting quarterly revenue of approximately $80.9 million and a loss per share of $6.55 [12][13] - Warner Brothers Discovery saw a significant gain of nearly 29% following news of a potential cash bid from Paramount Skydance [14][15] - Micron Technology's shares rose by 7.5% as Citi raised its price target to $175, citing growth potential in the data center market [17][18] - Adobe reported revenue of $5.99 billion, slightly above guidance, and raised its fiscal year revenue and EPS targets, leading to a 7% increase in after-hours trading [23][27][28] Sector Performance - The materials sector led gains, with Dow Chemical performing particularly well, while healthcare and consumer discretionary sectors also saw significant increases [10][11] - Energy was the only sector to decline, albeit slightly [11] - Oracle and Netflix were among the worst performers in the S&P 500, with Oracle down 6.2% after a strong previous day, and Netflix down 3.5% due to competitive pressures from potential media consolidation [20][21]
Ecovyst (NYSE:ECVT) Earnings Call Presentation
2025-09-11 07:00
Welcome September 11, 2025 Agenda Arnaud Pieton ChiefExecutive Officer BrunoVibert ChiefFinancial Officer Q&A Deal strategic rationale AM&C business overview Financials & value creation Benjamin Lechuga Chief Strategy & Sustainability Officer A Company in Motion Acquisition of Ecovyst's Advanced Materials & Catalysts business ("AM&C") Today's speakers Arnaud Pieton Chief Executive Officer Benjamin Lechuga Chief Strategy & Sustainability Officer Bruno Vibert ChiefFinancial Officer 2 Acquisition of Ecovyst's ...
Why Dow Stock Sank on Monday
Yahoo Finance· 2025-09-08 21:12
Group 1 - Dow's stock experienced a decline of over 2% following a bearish adjustment from an analyst, contrasting with a 0.2% rise in the S&P 500 [1] - Jefferies' Laurence Alexander lowered Dow's price target from $28 to $23 per share while maintaining a hold recommendation [2] - The downgrade was influenced by ongoing supply chain issues and the potential delay in increased demand due to interest rate cuts [3] Group 2 - Alexander suggested that Dow's management would need to continue reducing capital expenditures due to ongoing pressures, which, along with anticipated restructuring measures in 2026, could negatively impact the company's fundamentals [4] - Dow has faced significant challenges, including a recent 50% cut to its quarterly dividend, which led to increased selling pressure from investors [5] - The chemical industry is currently in a down cycle, struggling with oversupply issues and negative sentiment exacerbated by current tariff policies [5][6]
LyondellBasell Dividend: Reckless Decision Or Smart Capital Allocation?
Seeking Alpha· 2025-08-15 18:18
Industry Overview - The chemical industry is currently experiencing one of the worst down cycles in history [1] - LyondellBasell Industries is identified as being at the epicenter of this downturn [1]
Chemours: Solid Q2 And Legal Progress Are Bullish (Rating Upgrade)
Seeking Alpha· 2025-08-08 15:30
Group 1 - Chemours shares have underperformed over the past year, losing over a third of their value [1] - The chemical industry is facing challenges due to lackluster demand [1] Group 2 - The article does not provide specific investment recommendations or advice [2]