5 Best Materials Dividend Stocks To Buy Now

4. LyondellBasell Industries N.V. (NYSE:LYB)

Number of Hedge Fund Shareholders: 37

Dividend Yield: 5.34%

Chemicals company LyondellBasell Industries N.V. (NYSE:LYB) has an eight-year streak of raising its annual dividend payouts, giving it one of the best track records in the materials sector, which is typically fraught with cyclicality. In addition to raising its quarterly dividend payments by 5.3% in June, the company also paid out a hefty special dividend of $5.20 on June 13 in recognition of its record levels of cash generation in 2021.

While LyondellBasell Industries N.V. (NYSE:LYB)’s short-term results will be pressured by weakening demand and rising prices for natural gas (which is a key input for its plastics production), the company’s shares look like a great value proposition at the moment, trading at just 6.88x earnings. And the company’s dividend doesn’t appear to be at risk in any way, regardless of near-term headwinds, as LyondellBasell’s payout ratio is well below 40%.

The number of smart money managers long LyondellBasell Industries N.V. (NYSE:LYB) has trended down over the past five quarters after jumping by 78% in the first quarter of 2021. Two Sigma Advisors and Arrowstreet Capital added LYB to their 13F portfolios during Q2, while Steve Cohen’s Point72 Asset Management sold out of his position.