LYB vs NUE: Dividend Yield, Growth & Safety Comparison
LyondellBasell Industries N.V. (LYB) and Nucor Corp (NUE) are both in the Materials sector, making them natural rivals for dividend investors. LYB offers a significantly higher 9.40% yield compared to NUE's 1.15%, a gap of 8.25%. For dividend growth, NUE leads with a 5-year CAGR of 6.5% versus LYB's 5.3%. Both stocks carry a "Safe" dividend safety rating. NUE is a Dividend Contender with 16 years of consecutive increases.
Key Metrics Comparison
| Metric | LYB | NUE |
|---|
| Dividend Yield | 9.40% | 1.15% |
| Annual Dividend | $5.42 | $2.21 |
| 5-Year CAGR | 5.3% | 6.5% |
| Payout Ratio | 11% | 29% |
| Consecutive Years | 2 | 16 |
| Price | $57.80 | $182.61 |
Yield Comparison
LyondellBasell Industries N.V. (LYB) currently yields 9.40%, which is high for the broader market. That's 8.25% more than Nucor Corp (NUE), which yields 1.15%. In dollar terms, LYB pays $5.42/share annually versus NUE's $2.21/share.
Dividend Growth
Over the past five years, NUE has grown its dividend at a 6.5% CAGR compared to LYB's 5.3%. LYB: Dividend growth has been steady, with a 3-year CAGR of 5.0% and a 5-year CAGR of 5.3% (10-year: 5.6%). NUE: Dividend growth is slowing — the 3-year CAGR of 3.3% trails the 5-year rate of 6.5% and the 10-year rate of 4.4%.
Dividend Safety
LYB's dividend safety is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. NUE's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. LYB's payout ratio of 11% is more conservative than NUE's 29%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LYB generates approximately $940/year in dividend income, compared to $115/year from NUE — a difference of $825/year. At $100,000, that gap widens to $8250/year.
Verdict
- Best for income: LYB
- Best for growth: NUE
- Best for safety: LYB
Frequently Asked Questions
Which has a higher dividend yield, LYB or NUE?
LyondellBasell Industries N.V. (LYB) has a higher dividend yield of 9.40% compared to Nucor Corp (NUE) at 1.15%.
Is LYB or NUE a better dividend growth stock?
Nucor Corp has the stronger dividend growth with a 5-year CAGR of 6.5%, compared to LyondellBasell Industries N.V.'s 5.3%.
Which is safer for dividend income, LYB or NUE?
LyondellBasell Industries N.V.'s dividend safety is rated "Safe" while Nucor Corp is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
How much income does $10,000 in LYB vs NUE generate?
A $10,000 investment in LYB generates approximately $940/year in dividends, while the same amount in NUE generates about $115/year.
Is LYB or NUE a Dividend Aristocrat?
Nucor Corp is a Dividend Contender with 16 consecutive years of increases. LyondellBasell Industries N.V. does not currently qualify for aristocrat status.
Which has a lower payout ratio, LYB or NUE?
LyondellBasell Industries N.V. has a lower payout ratio of 11% compared to Nucor Corp's 29%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LYB vs NUE: which is better for retirement income?
It depends on your priorities. LYB for current income, NUE for dividend growth, LYB for safety. Many retirement investors hold both for diversification.
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