New York, Feb 21, 2026, 12:59 AM EST — Market closed.
- LyondellBasell shares closed up 2.4% on Friday after the company halved its quarterly dividend
- The new payout is $0.69 a share, down from $1.37
- Traders head into Monday watching cash discipline across chemicals and whether the cut marks a bottoming call
LyondellBasell (NYSE:LYB) shares ended Friday up 2.42% at $56.67 after the petrochemical maker cut its quarterly dividend nearly in half. The stock was down 1.54% in after-hours trading at $55.80. (Yahoo Finance)
A dividend cut is a blunt signal in a market that still pays up for income. It also forces a reset for a stock that had been treated like a yield trade — the dividend yield is the annual cash payout as a share of the stock price.
The broader market tone helped on Friday. U.S. stocks closed higher after the Supreme Court struck down President Donald Trump’s global tariffs, and Horizon Investments’ Mike Dickson said, “Today is a removal of some uncertainty.” (Reuters)
LyondellBasell said it declared a quarterly dividend of 69 cents per share, a 68-cent reduction from the fourth quarter payout, pointing to what it called one of the longest downturns in the chemicals industry. CEO Peter Vanacker said the company returned about $2 billion to shareholders in 2025 and added: “With markets expected to remain challenged, we have made the decision to recalibrate the dividend.” (Reuters)
In its dividend announcement, the company said the payment is scheduled for March 9 to shareholders of record on March 2, and it reiterated a target of returning 70% of free cash flow — cash left after expenses and capital spending — to shareholders “through the cycle.” It also said it is prioritizing safety and reliability in 2026 while pushing cost cuts and looking for new ways to lift profitability. (Lyondellbasell)
Some analysts were already modeling the move. UBS Global Research analyst Lucas Beaumont wrote earlier this year that, “If LYB wants to remain comfortably above $1-1.5 billion in cash balances, the dividend needs to be cut by ~50%,” and Kiplinger said he has a Sell rating and a $42 price target. (Kiplinger)
Others warned the headline could still sting, even if it was expected. Vital Knowledge analysts said in a note the cut was widely anticipated, but they also flagged the risk that a reduced payout could still bring selling pressure after the initial reaction. (Investing)
The dividend move lands weeks after LyondellBasell posted a surprise quarterly loss and said it aimed to deliver $1.3 billion in cost savings by the end of 2026, part of a broader effort to protect margins amid swings in feedstock and energy prices and weak product pricing. (Reuters)
The read-through is not just about one stock. Barron’s noted LYB’s shares rose on the day despite the cut, while pointing to the wider chemicals downturn and how dividend policy has become a pressure point for the sector. (Barron’s)
But the math is still uncomfortable if end-market demand stays soft and pricing does not improve. Investors will be watching whether the payout is now aligned with cash generation, or if the downturn forces another round of balance-sheet defense later this year.
Next up is the dividend calendar: the record date is March 2 and the payment date is March 9, a near-term test of how sticky the shareholder base is when U.S. markets reopen on Monday, Feb. 23. (Marketbeat)
