For investors who followed the stock before the February 2026 cut, that number probably stands out. LYB was paying $1.37 a share every quarter before management cut the payout by roughly 50% following one of the longest downturns in the chemicals industry. The decision also ended the company's 15-year streak of consecutive dividend increases.
That leaves income investors with a fair question: can the new dividend be trusted? There are some reasons to be more comfortable with the payout now, although the risks have not disappeared. LyondellBasell Industries N.V. (NYSE:LYB) remains committed to returning 70% of free cash flow to shareholders through the cycle.
More importantly, the latest quarter gave investors something positive to work with. The company reported $2.1 billion in adjusted EBITDA and $4.30 in adjusted EPS in Q2 2026, up sharply from $615 million and $0.49, respectively, in the first quarter. The bull case for LyondellBasell Industries N.V. (NYSE:LYB) really comes down to cash flow.
The company appears to be coming out of a difficult stretch, and the second-quarter results offer some evidence of that. Adjusted EBITDA more than tripled from the previous quarter. One quarter does not change everything, but it is a meaningful improvement from where the company was just a few months earlier.
LYB is also taking steps to improve the parts of the business it can control. It has been cutting costs, reducing capital expenditures, and reshaping its portfolio. The company's Cash Improvement Plan is expected to add $500 million in annual cash flow by the end of 2026.
If those savings come through, LYB should have more room to fund the $0.69 dividend and put some money toward its balance sheet. Morgan is taking a more positive view as well. The firm upgraded LYB from Neutral to Overweight and raised its price target from $75 to $80.
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