LYB vs NUE: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
LYB yields 8.25% more than NUE. In dollar terms, LYB pays $5.42/share vs NUE's $2.21/share annually.
Dividend Growth
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: The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x.
NUE: The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in LYB vs NUE today?
At $57.80 per share, $10,000 buys about 173.0 shares of LyondellBasell Industries N.V. (LYB). Each share pays $5.42 per year in dividends, so the position starts out generating roughly $938 per year — about $78 a month.
At $182.61 per share, $10,000 buys about 54.8 shares of Nucor Corp (NUE). Each share pays $2.21 per year in dividends, so the position starts out generating roughly $121 per year — about $10 a month.
LYB is the larger income stream from day one: $817 per year more on the same $10,000 invested.
What could $10,000 of LYB or NUE income look like in 10 years?
LyondellBasell Industries N.V. (LYB) has raised its dividend about 5.3% a year over the past five years. If that pace held, the $940 per year that $10,000 generates today at the current 9.40% yield would reach $1,569 per year by 2036 — a 15.7% yield on the original cost.
Nucor Corp (NUE) has raised its dividend about 6.5% a year over the past five years. If that pace held, the $115 per year that $10,000 generates today at the current 1.15% yield would reach $217 per year by 2036 — a 2.2% yield on the original cost.
On those trailing rates, LYB pays more in 2036: $1,569 versus $217 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would NUE's dividend growth overtake LYB's higher yield?
Not within a realistic holding period. Nucor Corp (NUE) is growing its dividend faster (6.5% vs 5.3% a year), but the starting-yield gap — 9.40% for LYB vs 1.15% for NUE — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, LYB's head start is decisive.
Can LYB and NUE afford their dividends?
LyondellBasell Industries N.V. (LYB) pays out about 11% of its earnings as dividends, which implies roughly 8.7x earnings coverage.
Nucor Corp (NUE) earns $7.51 per share against $2.21 paid out in dividends — 3.4x coverage (a 29% payout ratio).
LYB's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for NUE if earnings weaken.
Which fits an early-retirement income portfolio better, LYB or NUE?
For income you need right now, LyondellBasell Industries N.V. (LYB) leads: $100,000 invested today pays about $783 a month at the current 9.40% yield, versus $96 a month from Nucor Corp (NUE) at 1.15%.
With a decade or more before the income is needed, NUE's faster dividend growth (6.5% vs 5.3% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: LYB has raised its dividend 2 consecutive years; NUE has raised its dividend 16 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $3,854/yr in LYB vs $243/yr in NUE by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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