10 Chemical Dividend Stock with Over 2% Yield

Published December 20, 2021 at 10:01 am EST Updated September 7, 2026 at 1:52 pm EDT

In this article, we discuss the 10 best chemical dividend stocks with over 2% yield.

The U.S. chemical industry is crucial to the national economy as several other industries depend on it for their operations. According to a report published by American Chemistry Council, the U.S. is the second-largest producer of chemicals and provides 13% of the world’s chemicals. However, the industry was hit hard by the pandemic due to its cyclic nature, as chemical production in the U.S. fell by 4.3% in 2020. However, as the economy begins to recover after the pandemic, analysts have a positive outlook for the chemical industry.

Chemical Industry: Growth Outlook for 2022

Due to the growth in consumer demand, the American Chemical Council (ACC) expects the chemical industry to grow by 3.2% in 2022, as reported by Gordon Brothers, an investment company. Moreover, the report also mentioned that ongoing supply chain disruptions may cause production issues. However, the industry seems to be on a firm footing after the pandemic as, in 2021, U.S. chemical exports rose to $151 billion, from $125 billion in 2020. The exports are expected to reach $182 billion by 2025, according to Independent Commodity Intelligence Services.

With the recent technological advances, the chemical industry also participates in the digital revolution as many chemical companies try to adopt digital platforms in their operations. According to Deloitte, digital tools provide environmentally-friendly ways to carry out the extraction process.

Amid the threats of climate change, the chemical industry will more likely adopt decarbonization, since the industry represents 25% of the total emissions of the industrial sector, as reported by IEA. However, many companies are shifting focus to digitalization, especially in chemical plants to increase efficiency and streamline maintenance. Some of the major names in the chemical sector are Exxon Mobil Corporation (NYSE:XOM), Dow Inc. (NYSE:DOW), Chevron Corporation (NYSE:CVX), and Ciner Resources LP (NYSE:CINR).

In this article, we will focus on the chemical stocks that pay dividends.

10 Chemical Dividend Stock with Over 2% Yield

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Our Methodology:

The companies mentioned below are the stocks that pay dividends with over 2% yield. We considered analysts’ ratings and basic growth fundamentals while choosing these stocks. Moreover, the hedge fund sentiment for each stock was measured using Insider Monkey’s Q3 data of the 867 hedge funds.

The stocks are ranked from the lowest yield to the highest.

Chemical Dividend Stock with Over 2% Yield

10. Air Products and Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 32

Dividend Yield as of December 12: 2.03%

Air Products and Chemicals, Inc. (NYSE:APD) is an American chemical company that sells chemicals and related products for industrial uses. On November 18, the company announced a quarterly dividend of $1.50 per share, with a dividend yield of 2.03%. Air Products and Chemicals, Inc. has a track record of 39 years for consistent dividend growth, making it one of the best chemical dividend stocks.

Recently, Air Products and Chemicals, Inc. signed a deal with the government of Indonesia to develop a coal gasification industry, with the main aim of converting coal into high-value chemicals. The deal is valued at $15 billion. In fiscal Q4 2021, the company reported revenue of $2.84 billion, presenting a 22.4% growth from the prior-year quarter. Due to the company’s strategic developments, Mizuho initiated its coverage on Air Products and Chemicals, Inc. in November, with a Buy rating and a $312 price target.

The number of hedge funds tracked by Insider Monkey having stakes in Air Products and Chemicals, Inc. decreased in Q3 to 32, from 40 in the preceding quarter. However, in Q3, the value of these stakes jumped to $528.7 million from $456.4 million in Q2.

As of the close of December 12, Air Products and Chemicals, Inc.’s 12-month returns stood at 11.28%. Like Exxon Mobil Corporation, Dow Inc., Chevron Corporation, and Ciner Resources LP, Air Products and Chemicals, Inc. is also one of the notable chemical stocks.

9. Huntsman Corporation (NYSE:HUN)

Number of Hedge Fund Holders: 26

Dividend Yield as of December 12: 2.28%

Huntsman Corporation (NYSE:HUN), an American manufacturer of chemical products, surged following the Q3 beat. The stock delivered a 31.5% return to shareholders in 2021, as of the close of December 12. In its Q3 report, Huntsman Corporation posted an EPS of $1.08, beating estimates by $0.16.

As per Insider Monkey’s Q3 data, 26 hedge funds tracked by Insider Monkey held stakes in Huntsman Corporation, down from 27 in the previous quarter. The total value of these stakes is roughly $985 million. Among these hedge funds, Jeffery Smith’s Starboard Value LP was the company’s leading shareholder in Q3, holding roughly 11.6 million shares.

Huntsman Corporation pays a quarterly dividend of $0.1875 per share. The stock’s current dividend yield stands at 2.28%. Recently, Stifel showed confidence in the company’s targets as it reported solid Q3 earnings. The firm lifted its price target on Huntsman Corporation to $59, while maintaining a Buy rating on the shares.

8. Eastman Chemical Company (NYSE:EMN)

Number of Hedge Fund Holders: 30

Dividend Yield as of December 12: 2.35%

In Q3 2021, Eastman Chemical Company (NYSE:EMN), an American chemical manufacturer, experienced a positive hedge fund sentiment. The number of hedge funds tracked by Insider Monkey having stakes in the company increased to 30 in Q3, from 27 in the previous quarter. The total worth of these stakes is over $254.6 million.

Eastman Chemical Company made it to our list of the best chemical dividend stocks, as the company has a 12-year track record of consistent dividend growth. Currently, it pays an annual dividend of $2.76 per share, with a dividend yield of 2.35%. In Q3, Eastman Chemical Company earned $2.72 billion in revenue, which beat analysts’ estimates by $120 million. Moreover, the company expects 8%-12% growth in its annual adjusted EPS over the next three years.

As the company aims to shift towards sustainability to drive growth, recently, Wells Fargo lifted its price target on Eastman Chemical Company to $138, while keeping an Overweight rating on the shares. The firm’s analyst also acknowledged the company’s molecular recycling plant project. Eastman Chemical Company surged 18.99% year-to-date, as of the close of December 12.

7. FutureFuel Corp. (NYSE:FF)

Number of Hedge Fund Holders: 17

Dividend Yield as of December 12: 3.21%

FutureFuel Corp. (NYSE:FF) is an American developer and producer of chemicals and biofuels.

In Q3, FutureFuel Corp. reported an 82.3% year-over-year growth in its revenue at $$98.6 million. The company pays an annual dividend of $0.24 per share. The stock’s current dividend yield stands at 3.21%.

At the end of Q3 2021, 17 hedge funds tracked by Insider Monkey reported owning stakes in FutureFuel Corp., up from 14 in the previous quarter. The consolidated value of these stakes is $29.8 million. Jim Simons’ Renaissance Technologies was the largest shareholder of the Missouri-based company, holding a stake worth $14 million.

6. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 51

Dividend Yield as of December 12: 4.53%

Chevron Corporation is an American energy company that also runs a chemical business, Chevron Phillips Chemical Company LLC. It is one of the largest producers of ethylene, propylene, and specialty chemicals. With a 4.53% dividend yield and 33 years of consistent dividend growth, Chevron Corporation remains one of the best chemical dividend stocks.

Recently, RBC Capital upgraded Chevron Corporation to Outperform on grounds of its stable business plans. The firm also lifted its price target on the stock to $145. The company announced its Q3 results on October 27, and reported an EPS of $2.96, beating the consensus by $0.77. Moreover, Chevron Corporation also paid dividends worth $2.6 billion during the quarter.

As per Insider Monkey’s Q3 data, 51 hedge funds tracked by Insider Monkey held a $4.4 billion worth of stake in Chevron Corporation in Q3. In the preceding quarter, 50 hedge funds held stakes in the company, valued at $4.2 billion.

Chevron Corporation also gained ground among investors, like Exxon Mobil Corporation, Dow Inc., and Ciner Resources LP.

ClearBridge Investments mentioned Chevron Corporation in its Q1 2021 investor letter. Here is what the firm has to say:

“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”

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

Number of Hedge Fund Holders: 39
Dividend Yield as of December 12: 5.15%

LyondellBasell Industries N.V. (NYSE:LYB) is a Dutch chemical company that produces relevant materials to tackle modern challenges, such as food safety and water purity.

Since the start of 2021, LyondellBasell Industries N.V. increased its dividend by 7.62%, indicating a stable dividend for investors. On the whole, the company has a 10-year track record of consistent dividend growth, which places it in the list of the best chemical dividend stocks. In Q3, LyondellBasell Industries N.V. earned $12.7 billion in revenue, up 87.3% from the same period last year. The company’s revenue was mainly driven by robust demand and strong market conditions. Recently, HSBC upgraded LyondellBasell Industries N.V. to Buy, while maintaining a $112 price target on the stock.

As of Q3, Eagle Capital Management held over 3.2 million shares in LyondellBasell Industries N.V., becoming its largest shareholder for the quarter. Overall, 39 hedge funds in Insider Monkey’s database reported owning stakes in the company in Q3, down from 41 in the preceding quarter. The total value of these stakes is over $676.5 million.

4. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 42
Dividend Yield as of December 12: 5.25%

Dow Inc., an American chemical company, offers an industry-leading dividend yield of 5.25% since its separation from DowDuPont in 2019. During the third quarter, the company also paid over $518 million to shareholders through dividends.

As of Q3 2021, the number of hedge funds tracked by Insider Monkey having stakes in Dow Inc. grew to 42, from 40 in the previous quarter. The total value of these stakes is over $747.4 million, up significantly from $518.5 million in Q2.

In Q3, Dow Inc. posted an EPS of $2.75, beating estimates by $0.19. The company’s revenue for the quarter also grew by 53% on a year-over-year basis, reaching $14.84 billion. Recently, appreciating the company’s solid quarterly earnings, Wells Fargo set a $67 price target on Dow Inc., while maintaining an Overweight rating on the shares.

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 64
Dividend Yield as of December 12: 5.59%

Exxon Mobil Corporation is one of the largest energy and chemical companies in the world that specializes in the conversion of crude oil and natural gas into petrochemicals. Though the company saw a decline in the number of hedge funds holding stakes in it in Q3, Wall Street analysts remained bullish on the stock. Recently, both JPMorgan and Barclays raised their price targets on Exxon Mobil Corporation, to $83 and $73, respectively, with both appreciating the growth in the company’s free cash flow.

Exxon Mobil Corporation has been consistently increasing its dividend for the past 37 years, which makes it one of the best chemical dividend stocks. As of the close of December 12, Exxon Mobil Corporation surged 48.5% year-to-date, while its 12-month returns came in at 45.9%. The company’s CEO expects to double earnings and cash flow by 2025 from 2017 levels.

At the end of Q3, 64 hedge funds tracked by Insider Monkey held stakes in Exxon Mobil Corporation, valued at $4.6 billion. This is in comparison with Q2 when 68 hedge funds owned $3.6 billion worth of stakes in the company. GQG Partners was the largest shareholder of the Texas-based company in Q3, holding shares worth $1.5 billion.

First Eagle Investment Management mentioned Exxon Mobil Corporation in its Q2 2021 investor letter. Here is what the firm has to say:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”

2. Westlake Chemical Partners LP (NYSE:WLKP)

Number of Hedge Fund Holders: 4
Dividend Yield as of December 12: 8.04%

Westlake Chemical Corporation (NYSE:WLK) is a limited partnership formed by Westlake Chemical Corporation to develop ethylene production facilities and other assets. The company has been increasing its dividend for the past five years and currently pays a dividend of $1.89 per share. The stock’s current dividend yield stands at 8.04%.

As of Q3 2021, 4 hedge funds tracked by Insider Monkey held stakes in Westlake Chemical Partners LP (NYSE:WLKP), up from 3 in the previous quarter. The total value of these stakes is over $2.32 million. Ken Griffin’s hedge fund, Citadel Investment Group, was the company’s largest shareholder in Q3, owning a stake worth $1.3 million.

In Q3, Westlake Chemical Partners LP reported revenue of $293.9 million, presenting a 26.7% growth from the prior-year quarter. As of the close of December 12, the stock’s 12-month returns stood at 12.33%.

1. Ciner Resources LP (NYSE:CINR)

Number of Hedge Fund Holders: 1
Dividend Yield as of December 12: 8.41%

Ciner Resources LP is a chemical company that specializes in the production of natural soda ash. Currently, the company pays an annual dividend of $1.36 per share, with a dividend yield of 8.41%.

In Q3, Ciner Resources LP earned $135.6 million in revenues, up 38.1% from the same period last year. Moreover, the company also reported a 65.1% growth in its adjusted EBITDA at $24.1 million. Since the start of 2021, Ciner Resources LP delivered a 34.01% return to shareholders, while the stock returned 27.5% in the past year, as of the close of December 12.

Mountain Lake Investment Management was the only hedge fund holding stake in Ciner Resources LP in Q3, valued at over $2.5 million.

You can also take a look at 15 Biggest Companies That Don’t Pay Dividends and 10 Blue Chip Dividend Stocks Hedge Funds Are Buying

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