In this article, we discuss the 5 best chemical dividend stocks with over 2% yield. If you want to read our detailed analysis of the chemical industry, go directly to read 10 Chemical Dividend Stock with Over 2% Yield.
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. (NYSE:LYB) 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. (NYSE:LYB) 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. (NYSE:LYB) 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. (NYSE:LYB), 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. (NYSE:DOW), 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. (NYSE:DOW) 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. (NYSE:DOW) 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. (NYSE:DOW), 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 (NYSE:XOM) 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 (NYSE:XOM), to $83 and $73, respectively, with both appreciating the growth in the company’s free cash flow.
Exxon Mobil Corporation (NYSE:XOM) 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 (NYSE:XOM) 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 (NYSE:XOM), 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 (NYSE:XOM) 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 (NYSE:WLKP) 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 (NYSE:CINR) 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 (NYSE:CINR) 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 (NYSE:CINR) 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 (NYSE:CINR) 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
