The chemicals sector has been under pressure lately. Global demand is weak, and feedstock and energy costs remain high, squeezing margins for petrochemical makers. Amid this pressure, LyondellBasell (LYB), a heavyweight in chemicals, just announced a surprise dividend cut. The board declared a quarterly payout of $0.69, down from $1.37 in Q4 2025, about a 50% reduction. That move reflects one of the longest downturns in the industry.
For income investors, halving the payout is jarring. Let's dig into what led to this change and why it may be more prudent than it appears at first glance.
